What's The Position Of The Aberdeen Market?

[Alba]

The Aberdeen thread has been quiet for a while.

Any anecdotal or other info on the Aberdeen market?

From watching a range of properties on ASPC it seems that there is steady movement in the upper end, but perhaps not quite so buoyant in the mid to lower West End flats for example. This is just an impression, however.

When I compare Aberdeen with Edinburgh there seems to be many properties being offered there below valuation or at a fixed price.

I am surprised that Aberdeen has not yet followed suit. Is this the 'oil factor'?

[quine]

My link

Have you seen how many flats (FTBs) are on the market? Lots going below valuation. Here's one added this week. A 15% drop. Sold for £140 in 2007, now asking for £115 (and very few are paying asking prices these days). Poor vendor also has just splashed out on a new roof!

[quine]

Damned linking. It's 11 Mid Stocket Road on ASPC.

[Alba]

Damned linking. It's 11 Mid Stocket Road on ASPC.

It is not being offered below valuation, it is offers over the valuation of £115,000.

Whereas in Edinburgh as I mentioned, there are numerous properties being offered from £5k to £40k below the HIP valuation!

I did note that it was bought for £140K in 2007 but it looks like it may have been bought at well over the asking price because it sold for £124, 500 in May 2007.

There are also quite a number of repairs and problems requiring fixing.

[quine]

It is not being offered below valuation, it is offers over the valuation of £115,000.

Whereas in Edinburgh as I mentioned, there are numerous properties being offered from £5k to £40k below the HIP valuation!

I did note that it was bought for £140K in 2007 but it looks like it may have been bought at well over the asking price because it sold for £124, 500 in May 2007.

There are also quite a number of repairs and problems requiring fixing.

All property in 2007 was bought at well over what it should have been.

Edited September 12, 2011 by quine

[quine]

..and if you take time to look you will find plenty places being offered at less than valuation (you don't want me to do all the work do you )

Nobody pays valuation price these days anyway.

[Alba]

..and if you take time to look you will find plenty places being offered at less than valuation (you don't want me to do all the work do you )

Nobody pays valuation price these days anyway.

Well, if you don't mind

[Alba]

Look at the drop in price in this one! http://www-e.aspc.co.uk/cgi-bin/public/LiveProperty/282806?ID=FHHAEJEA#picture

[Diver Dan]

Look at the drop in price in this one! http://www-e.aspc.co...HHAEJEA#picture

For some strange reason, that house reminds me of this...

[sandster]

House round the corner from myself, exact same style sold for 13% more than we paid 3.5 years ago so I'd say in real terms the houses in my area have remained constant.

Edited September 29, 2011 by sandster

[Alba]

House round the corner from myself, exact same style sold for 13% more than we paid 3.5 years ago so I'd say in real terms the houses in my area have remained constant.

Which area?

[geneer]

House round the corner from myself, exact same style sold for 13% more than we paid 3.5 years ago so I'd say in real terms the houses in my area have remained constant.

ah that most popular of locations "not up my" street.

[rookie]

ah that most popular of locations "not up my" street.

Aberdeens offshore industry is very buoyant, vast amount of new offshore contracts coming up over the next 5 years minimum, all companies crying out for employees, high earners in employment, as long as that remains cant see any reason why the property value in aberdeen would drop in a major way.

When alot of people involved in the offshore (and onshore) side of the industry are earning well over £80k a year, city centre flats will not slump to below £60k

Dont beleive the doom merchants, Aberdeen is the place to be, will be even busier once the Aberdeen bypass gets the go ahead and trump builds his golf course, place is Boomin min! Great days for Aberdeen, long may it continue

If only theyd give Union street a sprucing up!

[sandster]

Which area?

Broomhill

[cashinmattress]

Aberdeens offshore industry is very buoyant, vast amount of new offshore contracts coming up over the next 5 years minimum, all companies crying out for employees, high earners in employment, as long as that remains cant see any reason why the property value in aberdeen would drop in a major way.

When alot of people involved in the offshore (and onshore) side of the industry are earning well over £80k a year, city centre flats will not slump to below £60k

Dont beleive the doom merchants, Aberdeen is the place to be, will be even busier once the Aberdeen bypass gets the go ahead and trump builds his golf course, place is Boomin min! Great days for Aberdeen, long may it continue

If only theyd give Union street a sprucing up!

Stop talking shite.

[rookie]

Stop talking shite.

Ok doom mongerer

Point out the bits that are "shite"

[sandster]

Ok doom mongerer

Point out the bits that are "shite"

Exactly the oil and gas sector is the busiest I've seen it in my 10 years up here. Dive Support Vessels are booked solid for the next 12 months.

[cashinmattress]

Yes, this city has fared well so far in this 'credit crisis'. But, the property market here hit the ceiling at the peak of the credit boom and has been rolling along that plateau ever since, primarily for the 'nice' housing in the West end and that out in the Shire. What in your mind will keep the prices static, or create an upsurge?

North Sea gas production falls 25%

UK oil output sees record fall

Does that kind of news bring things into perspective about the future of the city?

It's a very hard sell to shareholders to maintain a mostly obsolete fleet of platforms and infrastructure when you have Libya and other markets coming on line, especially when you see the margins. Oil has to remain very high in order for that to happen, but that's not good for anyone, especially those living in cold climates such as Scotland.

Nuff said, and I bow out of this thread.

If you want a circular argument, just look the the old threads with Hamish McTavish in regards to AB.

[rookie]

Yes, this city has fared well so far in this 'credit crisis'. But, the property market here hit the ceiling at the peak of the credit boom and has been rolling along that plateau ever since, primarily for the 'nice' housing in the West end and that out in the Shire. What in your mind will keep the prices static, or create an upsurge?

North Sea gas production falls 25%

UK oil output sees record fall

Does that kind of news bring things into perspective about the future of the city?

It's a very hard sell to shareholders to maintain a mostly obsolete fleet of platforms and infrastructure when you have Libya and other markets coming on line, especially when you see the margins. Oil has to remain very high in order for that to happen, but that's not good for anyone, especially those living in cold climates such as Scotland.

Nuff said, and I bow out of this thread.

If you want a circular argument, just look the the old threads with Hamish McTavish in regards to AB.

Stop talking shite

[sandster]

Yes, this city has fared well so far in this 'credit crisis'. But, the property market here hit the ceiling at the peak of the credit boom and has been rolling along that plateau ever since, primarily for the 'nice' housing in the West end and that out in the Shire. What in your mind will keep the prices static, or create an upsurge?

North Sea gas production falls 25%

UK oil output sees record fall

Does that kind of news bring things into perspective about the future of the city?

It's a very hard sell to shareholders to maintain a mostly obsolete fleet of platforms and infrastructure when you have Libya and other markets coming on line, especially when you see the margins. Oil has to remain very high in order for that to happen, but that's not good for anyone, especially those living in cold climates such as Scotland.

Nuff said, and I bow out of this thread.

If you want a circular argument, just look the the old threads with Hamish McTavish in regards to AB.

I agree with what you're saying, what you don't seem to realise is just how much work in places like North & West Africa and the Middle East is operated from Aberdeen.

[ccc]

I agree with what you're saying, what you don't seem to realise is just how much work in places like North & West Africa and the Middle East is operated from Aberdeen.

I know nothing about this field but the above interests me.

Whilst this may be true at present - surely this will gradually just shift away from Aberdeen until there is very little left ? Sure it will take a long period of time - however these companies will not all just stay there for the sake of it. One will decide to re-locate then the next then it is all over. Just a question of time really.

Things move and times change. I see no reason why Aberdeen would be any different ? May as well make hay whilst the sun shines though.

[rookie]

I know nothing about this field but the above interests me.

Whilst this may be true at present - surely this will gradually just shift away from Aberdeen until there is very little left ? Sure it will take a long period of time - however these companies will not all just stay there for the sake of it. One will decide to re-locate then the next then it is all over. Just a question of time really.

Things move and times change. I see no reason why Aberdeen would be any different ? May as well make hay whilst the sun shines though.

The Companies will not just move away from Aberdeen for the sake of it either

Why would the companies move out of Aberdeen when its the global centre of offshore engineering, and the majority of world class offshore Construction/Diving vessels are all managed from Aberdeen?

BP opened their new £50m HQ in Aberdeen in the last few years, an investment like that isnt made lightly, all main oil companies have had a presence in aberdeen for the last 25 years, cant see that coming to an end anytime soon, why would it? Why unsettle a very settled workforce? when the North Sea oil/gas runs out the workforce shall continue working on overseas jobs, just as they are at present, major offshore construction jobs being managed from Aberdeen offices.

All the infrastructure needs to be decommissioned from the North sea, easy 20 years of decommissioning work

Before the decommissioning work kicks off in a major way, theres plenty of new finds thatll keep Aberdeen ticking over nicely:

http://www.bbc.co.uk/news/uk-scotland-scotland-business-15255566

Not a word of shite, Aberdeen is booming, and its all down to the Oil

[ccc]

The Companies will not just move away from Aberdeen for the sake of it either

Why would the companies move out of Aberdeen when its the global centre of offshore engineering, and the majority of world class offshore Construction/Diving vessels are all managed from Aberdeen?

BP opened their new £50m HQ in Aberdeen in the last few years, an investment like that isnt made lightly, all main oil companies have had a presence in aberdeen for the last 25 years, cant see that coming to an end anytime soon, why would it? Why unsettle a very settled workforce? when the North Sea oil/gas runs out the workforce shall continue working on overseas jobs, just as they are at present, major offshore construction jobs being managed from Aberdeen offices.

All the infrastructure needs to be decommissioned from the North sea, easy 20 years of decommissioning work

Before the decommissioning work kicks off in a major way, theres plenty of new finds thatll keep Aberdeen ticking over nicely:

http://www.bbc.co.uk...siness-15255566

Not a word of shite, Aberdeen is booming, and its all down to the Oil

Why would it ? Because this happens in various industries. There are a multitude of examples worldwide. And the building of a new headquarters does not really tell everything. They will go where it makes sense to go. Just now that may be Aberdeen - in 5 years it may be somewhere completely different.

As you say - looks like there should be work for a good time to come - however it could be far shorter than you think. People in many industries around the World have had thoughts exactly as you have - and in a few years been sorely disappointed.

That is all I am saying.

[Torryloonmadegood]

Got to agree with Rookie, the industry is buzzing at the moment back to the 2007 peak wrt day rates etc

I'd have thought the chancellors tax grab would have had an impact but it looks like only the companies with old platforms in tail end production have been affected to any meaningful degree.

There are a significant number of new project teams being established, 2012 into 2013 will certainly be busy, work for 2014 is being bid at the moment.

Rookies point that Aberdeen is somewhat insulated on the back of the oil industry is correct at the top end of the west end granite market however there is an over supply of city centre flats for sale which is effectively creating two markets.

Sansters point is also correct, there are numerous Aberdeen HQ's Operators managing production in Africa and SE Asia. The contractors based here are also global, oil tends to be found in less than family orientated areas, you're not going to set up your HQ in Angola when the concentration of experienced engineers is in Aberdeen.

Aberdeen will certainly be busy for the next few years, beyond who knows ? But decommissioning will be a lengthy process, a guaranteed money spinner which in my opinion will see a lot of recent graduates through to retirement. Its taking up to 5 times as long to remove infrastructure than it took to put in !

[Democorruptcy]

Booming oil industry?

A major investment in the UK's North Sea oil industry that will secure production for decades to come for troubled BP has been approved by the Government.

It means BP and its partners in the Clair Ridge field, west of the Shetlands, can proceed with the second phase of their development to install two bridge-linked platforms at a cost of £4.5bn.

It will take total investment in the field to £10bn, with BP contributing £4.5bn of that alongside Shell (LSE: RDSB.L - news) , ConocoPhillips (EUREX: COPF.EX - news) and Chevron (NYSE: CVX - news) .

BP says that when you combine its four North Sea projects, over half of the investment will be spent in the UK and they will create 3,000 UK oil and gas supply chain jobs and support a further 3,500.

Announcing the Government's decision to approve the second phase, Prime Minister David Cameron said: "This... is great news for Aberdeen and the country and provides a massive boost for jobs and growth."

There has been a renewed focus on North Sea oil for BP since the disastrous oil spill in the Gulf of Mexico in April last year and its failed bid to tap the Arctic with Russia's state-owned Rosneft.

BP's chief executive Bob Dudley said: "After some years of decline, we now see the potential to maintain our production from the North Sea at around 250,000 barrels of oil equivalent a day until 2030."

BP says the wider Clair Ridge field has now become the UK's largest hydrocarbon resource and it is planning to extend its operation in the south west of the site after a "significant" find in an appraisal well.

Earlier this year, BP and its partners announced plans for the £3bn redevelopment of the Schiehallion and Loyal fields, west of Shetland, and the £700m development of the Kinnoull field in the central North Sea.

http://uk.finance.yahoo.com/news/Govt-Backs-4-5bn-BP-North-Sea-skynews-3502487380.html

Then there was the disposable income one

People in Aberdeen have seen their disposable income grow faster than anywhere in the UK in recent years thanks to the city's oil industry, a study shows.

After they've covered essentials like taxes, bills, mortgage payment or rent, the average Aberdonian household had £17,039 left over in 2009 - the most recent year for which full data could be obtained.

This was a rise of nearly 25% in just five years, according to accounting group UHY Hacker Young, and was due to persistently high oil prices and investment in North Sea production.

http://news.sky.com/home/business/article/16086149