Following the trend of Scotland as whole, Dundee and Angus have seen a significant increase in demand at all levels of the residential property sector since lockdown restrictions eased. Demand has continued to outstrip supply and the resulting impact is that there is a noticeable lack of stock entering the market, with quarterly sales records showing a drop of 22.8% year on year.
As ever, when supply is unable to meet market demands, prices increase, and there has been a 2.5% year on year increase in the average property price sold in Dundee in the last quarter. Properties are, and have been for a prolonged period, regularly achieving in excess of Home Report value and while indicators suggest this trend will slow in the coming months, this hasn’t happened as of Spring 2022.
The new build market in Dundee has recently slowed slightly as large developments near their final stages, however, future proposals are understood to be planned for both central and suburban locations. Angus has seen a steadier flow of new build development and this is helping to support stock supply levels within market towns and more rural locations. It is unclear yet what impact rising construction costs will have on this sector, although early indicators predict more cautious development across Scotland as a whole.
The rental market in Dundee and Angus has followed a similar trajectory to that of the sales market, with rental prices reaching record levels in recent months. Figures show that rental prices are up 12.5% year-on-year to an average of £722 per month and the time to let has reduced to a record low of 16 days. Whilst previously demand was focused more heavily in Dundee city centre locations, it is understood that demand for rural rental properties has recently increased and so this has increased demand in the Angus market also.
Dundee is currently undergoing a £1 billion transformation of its waterfront which comprises circa 240 hectares of development land, new state of the art train station and the newly opened V&A Museum of Design. V&A Dundee is an international centre for design in Scotland and the first ever design museum to be built in the UK, outside London. The waterfront development along with Dundee and Abertay Universities, The Wellcome Trust and the recently announced Eden Project Dundee are all combining to change the landscape of the city.