Jump to content
House Price Crash Forum
Alba

Aberdeen Hot!

Recommended Posts

The Aberdeen market has taken off in the past 2-3 months. Instead of a seasonal downturn there has been a substantial upturn. Even properties that had been sticking for months are now going. Fixed prices are also disappearing and the bulk of fixed price properties left are only ths that were grossly overvalued in the first place by developers/builders or had something that was a significant deterrent in the property. However, even these are beginning to shift. The builders/developers are continuing to demand high prices for new builds and redeveloped properties in the city centre. The sales staff can quote you £260,000 for an uninspiring 80 sq m, 2 bed flat in the West End without blinking. As can the staff when they quote £220,000 for a 2 bed flat yards from the main railway line on an uninspiring site in a lack lustre part of the city.

What is going on?..........This market is beginning to pull ahead of Edinburgh and Glasgow, and shows no signs whatever of slowing. I am beginning to panic!!

Share this post


Link to post
Share on other sites

People buy what they can afford or what they can borrow and given Scotland's booming employment, inflation on the Irish scale looks likely. Best to get in quick or prices may be much higher by Spring when the rest of the UK realizes that Aberdeen is the only place where prices are rising.

Edited by Realistbear

Share this post


Link to post
Share on other sites

The Aberdeen market has taken off in the past 2-3 months. Instead of a seasonal downturn there has been a substantial upturn. Even properties that had been sticking for months are now going. Fixed prices are also disappearing and the bulk of fixed price properties left are only ths that were grossly overvalued in the first place by developers/builders or had something that was a significant deterrent in the property. However, even these are beginning to shift. The builders/developers are continuing to demand high prices for new builds and redeveloped properties in the city centre. The sales staff can quote you £260,000 for an uninspiring 80 sq m, 2 bed flat in the West End without blinking. As can the staff when they quote £220,000 for a 2 bed flat yards from the main railway line on an uninspiring site in a lack lustre part of the city.

What is going on?..........This market is beginning to pull ahead of Edinburgh and Glasgow, and shows no signs whatever of slowing. I am beginning to panic!!

Fixed priced are not disapearing.

Properties still on the market after 5 months.

Share this post


Link to post
Share on other sites

I would say Alba works for Barrats or is an EA.

Certainly not what im seeing in teh market.

Things come along in the £220k market and stick and dont move.

Even if people are buying, and i know a few, I know how their finances look and I laugh!!

A good test will see how well the flats sell at queens cross when completed.

Share this post


Link to post
Share on other sites

Fixed priced are not disapearing.

Properties still on the market after 5 months.

You obviously don't know, or are incapable of monitoring the Aberdeen market.

I have given this example before, but I will reiterate: in Aberdeen centre, ( flats over £80,000 category) there were 56 fixed prices in October 2005. Today there are only 18 with 4 of those under offer. For those who want to check see www.aspc.co.uk

There are numerous examples of how hot the Aberdeen market is, but I just cannot be bothered. If you want to believe otherwise then so be it.

I am not an EA or whatever. I have been looking to buy back into the Aberdeen market since May last year. I was gazumped and I thought I could wait until the seasonal downturn from October onwards, but have unfortunately been caught out. Before you say this cannot happen in Scotland, it is now so widespread the Law Society has sent a memo to all solicitors concerning the problem.

In the interim the market has risen by 10%-15%. I would estimate I am down at least £20,000 due to this, if I include rent and furniture storage.

When you are actively looking for a property that is when you really get to know the market.

Share this post


Link to post
Share on other sites

You obviously don't know, or are incapable of monitoring the Aberdeen market.

I have given this example before, but I will reiterate: in Aberdeen centre, ( flats over £80,000 category) there were 56 fixed prices in October 2005. Today there are only 18 with 4 of those under offer. For those who want to check see www.aspc.co.uk

There are numerous examples of how hot the Aberdeen market is, but I just cannot be bothered. If you want to believe otherwise then so be it.

I am not an EA or whatever. I have been looking to buy back into the Aberdeen market since May last year. I was gazumped and I thought I could wait until the seasonal downturn from October onwards, but have unfortunately been caught out. Before you say this cannot happen in Scotland, it is now so widespread the Law Society has sent a memo to all solicitors concerning the problem.

In the interim the market has risen by 10%-15%. I would estimate I am down at least £20,000 due to this, if I include rent and furniture storage.

When you are actively looking for a property that is when you really get to know the market.

I am actively looking Alba and fear you are speaking out your ****.

If you want to buy a house in todays conditions be my guest.

I know how these houses are being funded and am sure it will not last long.

I.e. someone in aberdeen bought a flat hte other day on a 125% morgage. morgage takes up 75% of his salary. i laughed. Many other people are just like this.

Why not build your own house. Youd have it done by now.

There are plenty of sites on ASPC sitting there for many months now. But i still wouldnt even honour them by putting in a stupid offer.

Yes crappy 1 bedroomed flats are going to the meek and stupid who have no grasps of economics or financial sense. thats not my problem. As soon as affordability crushes them, it will have impact on all of aberdeen anyway so what difference does it make. To increase house prices, an increase in wealth needs to occur. There is no additional money coming into aberdeen except through borrowing and over stretching.

Share this post


Link to post
Share on other sites

You obviously don't know, or are incapable of monitoring the Aberdeen market.

I have given this example before, but I will reiterate: in Aberdeen centre, ( flats over £80,000 category) there were 56 fixed prices in October 2005. Today there are only 18 with 4 of those under offer. For those who want to check see www.aspc.co.uk

There are numerous examples of how hot the Aberdeen market is, but I just cannot be bothered. If you want to believe otherwise then so be it.

I am not an EA or whatever. I have been looking to buy back into the Aberdeen market since May last year. I was gazumped and I thought I could wait until the seasonal downturn from October onwards, but have unfortunately been caught out. Before you say this cannot happen in Scotland, it is now so widespread the Law Society has sent a memo to all solicitors concerning the problem.

In the interim the market has risen by 10%-15%. I would estimate I am down at least £20,000 due to this, if I include rent and furniture storage.

When you are actively looking for a property that is when you really get to know the market.

As someone has already said: It seems you really dont know what your talking about.

Do you think the 38 properties sold in that band??

I know personally of at least one that didnt.

Show us all these examples of how hot the Aberdeen market it is.

While you are at it you can show us the properties that have been on the market for 3-5 months + and are still not selling. ;)

Share this post


Link to post
Share on other sites

I currently work overseas and we moved from Aberdeen at the beginning of 2004 with a view to buy back when we returned. We have looked and looked but only a handful of properties have met our expectations and then we were put off by the silly asking prices. Houses have been selling quickly at offers +15-20%! Either people are moving in due to the oil industry (oil above $60/bbl) or they are increasing their debt positions to move up the property ladder.

Cala homes have recently built their Grandholm Village between Tillydrone and Bridge of Don by the river - not exactly where I would spend £350k but many have! People are buying - not sure if it is BTL or just families trading up to a Cala Rabbit Hutch. Even the new development out at Banchory is moving, so there still is some steam left in the Aberdeen + Local Areas market. I look at www.aspc.co.uk every day but nothing appeals at all. There are only a few places in Aberdeen I would buy and when I see the dross being bought at ridiculous prices, we can't be that far from the top.

:ph34r:

Edited by nxakram

Share this post


Link to post
Share on other sites

I currently work overseas and we moved from Aberdeen at the beginning of 2004 with a view to buy back when we returned. We have looked and looked but only a handful of properties have met our expectations and then we were put off by the silly asking prices. Houses have been selling quickly at offers +15-20%! Either people are moving in due to the oil industry (oil above $60/bbl) or they are increasing their debt positions to move up the property ladder.

Cala homes have recently built their Grandholm Village between Tillydrone and Bridge of Don by the river - not exactly where I would spend £350k but many have! People are buying - not sure if it is BTL or just families trading up to a Cala Rabbit Hutch. Even the new development out at Banchory is moving, so there still is some steam left in the Aberdeen + Local Areas market. I look at www.aspc.co.uk every day but nothing appeals at all. There are only a few places in Aberdeen I would buy and when I see the dross being bought at ridiculous prices, we can't be that far from the top.

:ph34r:

At last someone who knows what they are talking about.

I agree with you entirely, as we are in virtually the same position having sold almost a year ago.

As I said, you really have to be actively looking to know what is going on out there.

You are right concerning the dross at ridiculous prices.

I hope that you are right that we cannot be far from the top, as we are contemplating holding on until a downturn. I would hate to buy at the peak then watch the market fall. We got caught out around 1986. It is scary though because prices have already risen by about 10%-15% in the last year.

The latest Halifax figures indicate an 11% average price increase for Grampian in 2005.

The problem is that we are now at least 10% behind. Another year at this sort of % rise and we could be substantially further behind.

As I said previously, I am finding prices are higher than for a similar central flat in Glasgow or Edinburgh. At least there are numerous fixed prices there by comparison.

By way of anecdotal information, there are 6 redeveloped flats for sale at 1 Bon Accord Square. They were put on show last weekend. They were on initially from £175,000. The price is now from £200,000 for the same 6! At the Stewart Milne Devanha complex (overlooking the main Aberdeen railway line!!) they were originally on at fixed price £114,000. Now it is fixed price £124,000. Very cheeky!

Scotia Homes are building at the bottom of Polmuir Road, again adjacent to the main Aberdeen railway line!!

A two bedroom flat overlooking the railway line from £220,000. They must be joking!!

People think a market is hot when property takes about 4-6 weeks to sell. I am finding that anything of interest is going in just over a week at the moment.

I am also finding that the solicitors are not even bothering to timeously update the ASPC site. There are a number of properties under offer that are still showing as available.

Apart from the oil price which may be stimulating the Aberdeen market, I have noticed an inreasing immigrant population which may be providing a stimulus at the bottom end and thus a domino effect up through the various price bands. The lower end may be bought by BTL to this poulation thus freeing up the owners to buy further up the chain. This is just conjecture, but a distinct possibility. Although I have no personal knowledge I have been reading and hearing that the Inverness market is also very active. It may therefore simply be a case of a time lag compared to the rest of the UK and the north is now catching up. But the prices are getting out of hand. I get the impression that it is a feeding frenzy of builders, developers, and greedy solicitors that are pushing prices up. The solicitors have been having a substantial redevelopment punt themselves for some time. Some have even redeveloped their own offices to flats. Golden Square is just such an example.

For those of you who perceive things differently in the Aberdeen market, so be it. That is your perspective, it certainly is not mine. I truly wish it was as you see it but I know from very serious searching in the past few months not to be so, unfortunately!

Share this post


Link to post
Share on other sites

Aberdeen is usually out of sink with the rest of the UK. Yes the Aberdeen property market is booming right now but thats because prices didnt even start to rise until 2001 or 2002. The oil industry is now booming also and wages are very high. This is totally at odds with what is going on in the rest of the country but is no surprise to me. Prices may well rise further but this will just be temporary and sometime after the rest of the UK housing market has collapsed the same will happen in Aberdeen. How much longer will the Oil industry support the Aberdeen property market? One thing is for sure, and that is when the oil industry goes, Aberdeen will be a ghost town and you could not give your house away.

Share this post


Link to post
Share on other sites

Incidentally nxacram, I omitted to touch on the following in my last post .........

"Cala homes have recently built their Grandholm Village between Tillydrone and Bridge of Don by the river - not exactly where I would spend £350k but many have! People are buying - not sure if it is BTL or just families trading up to a Cala Rabbit Hutch".

I have never understood the attraction of this development for the following reasons:

1. It is built on a river floodplain and the water level is just below that of the houses and gardens.

2. I believe that there have been numerous bore holes done in peoples' gardens for the proposed new bridge over the Don.

3. It is a footbridge away from a really dodgy residential area.

4. Litter is strewn down the river bank slopes from Tillydrone. Not very scenic.

Yet still they sell at very high prices.

It says something about the Aberdeen market

How much longer will the Oil industry support the Aberdeen property market? One thing is for sure, and that is when the oil industry goes, Aberdeen will be a ghost town and you could not give your house away.

I would not anticipate a negative oil effect until well over 20 years time. This is the latest time period for decline. However, this time period is constantly being reappraised and extended.

Also given the geopolitical problems with oil at the moment this time period may be further extended as older, smaller and expensive reserves are subjected to further development.

Share this post


Link to post
Share on other sites
I would not anticipate a negative oil effect until well over 20 years time. This is the latest time period for decline. However, this time period is constantly being reappraised and extended.

Also given the geopolitical problems with oil at the moment this time period may be further extended as older, smaller and expensive reserves are subjected to further development.

You might be right there but I wouldnt gamble 250K on it. I guess Aberdeen will be the place to be over the next few years but who knows what will happen after that? Would you buy a house now if you knew it would be worth almost nothing in 30 years time? Its just too big a risk. Prices could start to decline anytime and never increase again.

Share this post


Link to post
Share on other sites

You might be right there but I wouldnt gamble 250K on it. I guess Aberdeen will be the place to be over the next few years but who knows what will happen after that? Would you buy a house now if you knew it would be worth almost nothing in 30 years time? Its just too big a risk. Prices could start to decline anytime and never increase again.

Who knows these time frames?

I do know that it took Aberdeen until this past year to truly recover from the 1986 HP collapse. So we are talking almost 20 years, and this is despite the economics of the oil industry

Aberdeen is somehow anomalous when compared with the rest of the UK.

A 30 year event horizon is too far in the future for me. I am more interested in the next 5-10 years.

I may very well be a ghost in that ghost town!

Share this post


Link to post
Share on other sites
Guest Cletus VanDamme

Just out of interest, what's Aberdeen like as a place to live? I saw a program some time ago about how many residents lives were being blighted by the the aggro associated with the large number of nightclubs and late night bars springing up? One couple had a beautiful house, it seemed to be in quite a nice area, but they were having a nightmare.

Thanks

Cletus

Share this post


Link to post
Share on other sites

Hey Alba,

Do you want a laugh - have you seen what the new kepplestone flats have been priced at??

£220,000k for a 2 bedroomed rising to 330k

For a 3 bedroomed penthouse 350k to 450k.

Now stewart milne are having a laugh. I want to see how many are bought at this price next to one of the busiest roads in Aberdeen.

Barratt homes are really struggling to shift and i know a lot of these are going to novice BTL'ers who are struggling to get enough rent to keep them out the red. They have about 5 development sites across Aberdeen.

Share this post


Link to post
Share on other sites

Hey Alba,

Do you want a laugh - have you seen what the new kepplestone flats have been priced at??

£220,000k for a 2 bedroomed rising to 330k

For a 3 bedroomed penthouse 350k to 450k.

Now stewart milne are having a laugh. I want to see how many are bought at this price next to one of the busiest roads in Aberdeen.

Barratt homes are really struggling to shift and i know a lot of these are going to novice BTL'ers who are struggling to get enough rent to keep them out the red. They have about 5 development sites across Aberdeen.

I agree re the Stewart Milne development, but at these prices I am laughing so much I am crying.

As far as I am aware there are no incentives either.

If the Aberdeen market maintains its current momentum, they may sell no problem, although I definitely would not buy one, and I am in the market for a flat.

The local residents have complained about this ugly blot on the landscape, but I bet they now wish they had not opposed the proposed supermarket for that site. It was to have been low rise with a turfed roof in order to blend in. With hindsight I know what I would have preferred.

Share this post


Link to post
Share on other sites

Just out of interest, what's Aberdeen like as a place to live? I saw a program some time ago about how many residents lives were being blighted by the the aggro associated with the large number of nightclubs and late night bars springing up? One couple had a beautiful house, it seemed to be in quite a nice area, but they were having a nightmare.

Thanks

Cletus

Hi Cletus,

I saw the same programme. I think their house is still for sale if I have identified it correctly. If I am right it is immediately across the road from a very poular nightclub, with others in the close vicinity. In fact the adjoining property is also for sale and has been for some time. I don't think their appearing on that programme would have helped their position at all. I would not buy it at half the price!

Re Aberdeen as a place to live. I have a love/hate relationship with the place. I am probably more drawn to it because my roots are here.

I have certainly noticed a change in the place, more so in the last year. I don't know the reason but there has been a significant influx of immigrants. There is one main street in particular where if I walk down I can hear many languages but my native tongue. A real multi ethnic mix is developing.

My particular dislikes are: an uninspiring city centre. Pedestrianisation has been promised for years but has never materialised. Shopping in the city centre can be very unpleasant at the weekends. Traffic congestion. The city is positioned between two rivers with insufficient bridges to facilitate the flow of commuter etc traffic. Again there have been promises of additional bridges, but they have remained just that.

As the old central buildings are mostly constructed from granite they can be dark and drab on a wet day.

It is quite a windy city and the wind can cut through you, particularly on a cold wet day like today.

Aberdeen used to have a reputation of being a clean city, but no more. However, I suppose this is a characteristic of many UK and even European cities these days.

Crime, violence and drugs would be on a par with most other UK cities of this size.

I find it quite an expensive place to live, and council taxes are about the highest in the UK in my opinion. I do not feel we get true value for the level of council tax we pay.

Despite the fact that we have had the oil industry since 1972, I believe the economic benefits have been squandered and not reflected in the quality of the environment.

It is also a fact that given the oil industry we have a really poor transport infrastructure. There are very poor connections to other UK airports and the international links are particularly bad.

The positives are: the helpfulness of the native Aberdonians. The quality and friendly service you get in the shops. I can speak from experience having travelled widely.

The countryside is just on your doorstep, and it is really attractive.

You can breath fresh air, although not so good in the centre due to lack of pedestrianisation and public transport funneled through the city.

I hope this gives you a flavour.

Share this post


Link to post
Share on other sites

Just out of interest, what's Aberdeen like as a place to live? I saw a program some time ago about how many residents lives were being blighted by the the aggro associated with the large number of nightclubs and late night bars springing up? One couple had a beautiful house, it seemed to be in quite a nice area, but they were having a nightmare.

Thanks

Cletus

Some of us may remember the "Glaswegian Hello"--a form of sudden and violent headbut given to strangers as they walk innocently down a street. This practice, which began in the early 1970's, actually originated from Aberdeen as a result of the pub culture. It developed into a trademark form of street violence in Glasgow and was popularized by comedian Billy Connolly in a number of his stand up routines. The headbutter would ask the stranger if they had a sewing machine. When the stranger asked "why" they were met with the Glaswegian Hello followed by advice to "stitch that." Sadly, this tradition has largely dissappeared into the annals of folklore.

Share this post


Link to post
Share on other sites

Some of us may remember the "Glaswegian Hello"--a form of sudden and violent headbut given to strangers as they walk innocently down a street. This practice, which began in the early 1970's, actually originated from Aberdeen as a result of the pub culture. It developed into a trademark form of street violence in Glasgow and was popularized by comedian Billy Connolly in a number of his stand up routines. The headbutter would ask the stranger if they had a sewing machine. When the stranger asked "why" they were met with the Glaswegian Hello followed by advice to "stitch that." Sadly, this tradition has largely dissappeared into the annals of folklore.

Actually it is called a 'Glasgow Kiss' and it was more the late 1950's early 60's.

Also the expression was " can your mother sew?" and the response was "well get her to stitch that!"

The expression may have disappeared but the practice is still extant.

Share this post


Link to post
Share on other sites
Guest Cletus VanDamme

The countryside is just on your doorstep, and it is really attractive.

You can breath fresh air, although not so good in the centre due to lack of pedestrianisation and public transport funneled through the city.

I hope this gives you a flavour.

Thanks for that. Having beautiful countryside just around the corner is a big plus and can make up for a lot of the problems associated with city living.

I live in Enfield, it gets a lot of flak in the media and is an extremely unfashionable part of London in which to live, but I like it because you have some great countryside and ancient woodland within walking distance, yet you're just a 20 minute train ride from central London.

Share this post


Link to post
Share on other sites

I was thinking of picking up a cheap BTL in Peterhead/Fraserburgh, but even there prices seem to be picking up.

Historically, house price inflation ripples very slowly up to these parts, but one thing is for sure - once it's reached the outer limits, it's about to crash at the epicentre.

Share this post


Link to post
Share on other sites

Alba, where are these houses for sale that cant sell??

Not outside charlies or that neck of the woods are they?

I cant think of anywhere else there is nightclubs and houses.

The one I think it is can be found on www.aspc.co.uk ref. 233599 Although it is listed as the Hardgate the rear of the property borders Justice Mill Lane. Which as you probably know is a street that has many late night bars and clubs.

This one and the one next door have been for sale for some considerable time, and I can understand why given the proximity of the club across the road, which is open to 3am.

It is a shame because there is a nice park to the front of the property.

However, there are other places where property has stuck and gone to a reduced fixed price, due I am sure to the proximity of a club. One I know of recently was a main door duplex flat across from the Ministry in Dee Street. A nice flat, but virtually opposite the Ministry, which is usually featured on any TV shots of Aberdeen clubbers and rowdyism, as is Justice Mill Lane.

Thanks for that. Having beautiful countryside just around the corner is a big plus and can make up for a lot of the problems associated with city living.

I live in Enfield, it gets a lot of flak in the media and is an extremely unfashionable part of London in which to live, but I like it because you have some great countryside and ancient woodland within walking distance, yet you're just a 20 minute train ride from central London.

I used to live in Tottenham and work in Enfield.

Share this post


Link to post
Share on other sites

It is getting crazy here. I am finding that it is even hotting up more so than when I first posted.

Check the solicitor's site www.aspc.co.uk and the amount of flats in the city under offer and with closing dates.

I went to see a flat at the beginning of the week. It needs updating, yet there are already 13 notes of official interest. They found it difficult to fit me in for a second look as the viewing diary was full up!

I reckon that there will be around 10 offers on this property!

I am getting quite depressed as I would like to wait for a market correction here, but fear it is some way off if ever!

Share this post


Link to post
Share on other sites

It is getting crazy here. I am finding that it is even hotting up more so than when I first posted.

Check the solicitor's site www.aspc.co.uk and the amount of flats in the city under offer and with closing dates.

I went to see a flat at the beginning of the week. It needs updating, yet there are already 13 notes of official interest. They found it difficult to fit me in for a second look as the viewing diary was full up!

I reckon that there will be around 10 offers on this property!

I am getting quite depressed as I would like to wait for a market correction here, but fear it is some way off if ever!

Like I said before, the bottom end of the market is still bubbling.

Amatuer BTL'rs believing this is the path to great riches.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.