14stFlyer Posted January 25, 2021 Share Posted January 25, 2021 (edited) 7 hours ago, babo456 said: thought North sea was one of the most expensive places to produce, am I missing something? No, you are not miss ing anything here. High costs, high risk prospects, and mostly relatively small remaining features. This is why the tax system and incentives have to be the “best” by which they mean some of the most attractive in the world to encourage investment. Edited January 25, 2021 by 14stFlyer Quote Link to comment Share on other sites More sharing options...
shortbread Posted February 1, 2021 Share Posted February 1, 2021 Quote 'People think oil workers are fine but we're not' - Oil worker According to a report by Aberdeen and Grampian Chamber of Commerce, about a fifth of oil and gas firms expect more redundancies in 2021. This follows Oil and Gas UK's earlier warning that 30,000 jobs could be lost as a result of the coronavirus pandemic and the low oil price. https://www.bbc.co.uk/news/uk-scotland-55809335 Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 1, 2021 Share Posted February 1, 2021 39 minutes ago, shortbread said: https://www.bbc.co.uk/news/uk-scotland-55809335 Well .. if the oilies had not spend the time til ~2012ish bragging about how rich they were and splashing cash everywhere then maybe theyd get some more sympathy. Theres zilch symp for someone whos pissed the large part of 500k on coke n shiny consumer goods. Quote Link to comment Share on other sites More sharing options...
Oily Posted February 1, 2021 Share Posted February 1, 2021 On 21/12/2015 at 18:56, Oily said: House Story In 2013 and 2014 a couple of 3-bed semi's came up for sale in the same street in Cults and both were immediately deluged with interest and offers. The first owner accepted a generous offer made on day one. The second semi generated about 40 visits from prospective buyers (in mid-2014) and it sold for about £50k over the asking price. Both went for just under £500k. About 6 weeks ago a larger, and beautifully presented, terraced house in an adjoining street came on the market for around the same price but, so far, it has received no interest. I know it's a quiet time of year for house sales but no interest is quite a surprise. Outlook I think the planners in Aberdeen mistakenly believed that rampaging house prices indicated a severe shortage in supply and approved a high number of new build projects. The local plan for Grampian also extrapolated historic population growth and a projected a significant increase in population over the next 10 years, which even looked dodgy a couple of years ago. As a result thousands of houses are currently planned to be built. However, I suspect the house price bubble was largely due to there being a high proportion of (young) ambitious and super-confident high earners in the region who believed the boom would last forever (I know many Audi/Evoke/BMW/Porsche driving couples in their late 20's/early 30's with joint incomes far in excess of £200k pa). Oil prices have now declined to a sub-$40 level which may appear low but, from memory, I don't think they actually exceeded $40 for the whole 20 year period from 1985-2005. So this may not be so much an oil price crash as a return to 'normality' following a 10-year price boom. At $40 the North Sea will continue to produce oil but many fields will be forced into early decommissioning and future investment will be extremely low. There are strong similarities between the UK oil industry and the coal industry, which ceased production yesterday with millions of tons of untapped coal reserves - the size of reserves is irrelevant if they are uneconomical to exploit. The Savills article states: "Furthermore, prime values in the Aberdeen area are 34% higher than they were in 2007, the peak of the Scottish market. This compares to a drop of 22% for Scotland as a whole" In other words the temporary oil boom caused prime house prices in Aberdeen to rise by 34% when, over the same period, a 22% fall occurred elsewhere in Scotland - not scientific but if you 'do the math' a 42% drop in house prices in Aberdeen would be required to restore relativity with the rest of the country. Factor in a severe oil recession and all bets are off. Towards the end of the last serious oil recession (in 1988 I think) I recall a really nice 2-bed semi in Milltimber being repossessed by the bank and being put up for sale at a fixed price of £35k. There was no interest for over 9 months. The difference between that recession and the current one is that there were far greater oil reserves left which were cheaper to exploit than what currently remains. Who knows what's going to happen but the Aberdeen economy is almost wholly dependent on oil and sooner or later it will go the same way as all the other industries that ensured long-term prosperity and employment for this region i.e. paper-making, fishing, fish processing, textiles, granite mining and associated trades. Although farming continues it is no longer a big employer. I think we're going to need more than a task force! A bit lengthy, but I thought it was worth revisiting one of my old posts from over 5 years ago in light of today's articles regarding out-of-work oil workers. If you factor in the relentless green movement and the global covid measures I don't think it'll be long before there's a general realisation the good times are gone for good in Aberdeen. In the meantime housebuilders will continue to add two to three thousand new properties to the overall housing stock every year - it's now or never if they're ever going to recover the 'sunk cost' of their land banks. One major concern is the poor state of the traditional housing stock in the city - I can see granite tenements becoming unsellable as their condition continually deteriorates and repair costs being unaffordable (if you've ever tried to organise payment for shared repairs you'll know what I mean!). Good example in this recent news story but a quick walk around the city centre with reveal many similar properties in an extremely poor state of repair. https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-55750240 Aberdeen is the new Dundee (or rather the old Dundee as it's actually done rather well to diversify its economy and reinvent itself over the past few decades). Quote Link to comment Share on other sites More sharing options...
shortbread Posted February 1, 2021 Share Posted February 1, 2021 41 minutes ago, Oily said: Aberdeen is the new Dundee (or rather the old Dundee as it's actually done rather well to diversify its economy and reinvent itself over the past few decades). Have you even been reading any of the local press lately? You are so wrong. All I have to tell you is.......Aberdeen bounce back, green shoots of recovery, decommissioning, renewables, wind power, buoyant...yada...yada....yada Quote Link to comment Share on other sites More sharing options...
Oily Posted February 1, 2021 Share Posted February 1, 2021 2 hours ago, shortbread said: Have you even been reading any of the local press lately? You are so wrong. All I have to tell you is.......Aberdeen bounce back, green shoots of recovery, decommissioning, renewables, wind power, buoyant...yada...yada....yada What am I like? I normally believe everything I read in the P&J obvs and Bob Fraser is a visionary in predicting house market trends. Let's play 'talk the market up" bingo next time there's an ASPC article ----- <Green Shoots> <Energy Hub> <Decommissioning>....HOUSE! Quote Link to comment Share on other sites More sharing options...
Ignorantbliss Posted February 1, 2021 Share Posted February 1, 2021 What is fascinating is that large, poor quality housing estates with miniscule gardens are still being put forward for planning permission - here's a good example well outside Aberdeen - link. Naively thought the builders would realise that those houses that are selling quickly are those with decent sized gardens and rooms. Thus they should cater for that market accordingly, but as ever greed rules. Quote Link to comment Share on other sites More sharing options...
Ignorantbliss Posted February 5, 2021 Share Posted February 5, 2021 Latest puff piece from Aberdeen Journals on housing. Article below is based on this report - https://www.aspc.co.uk/media/2035/fourth-quarter-2020.pdf Aberdeen property market ‘buoyant’ despite continued challenges https://www.eveningexpress.co.uk/fp/news/local/positive-movements-in-north-east-property-market-in-fourth-quarter-of-2020-aspc/ Quote New figures have revealed “positive” movements in the north-east housing market in the fourth quarter of 2020. ASPC, in cooperation with Aberdeen University Business School, has published new statistics for the end of the year relating to the Aberdeen housing market. House prices in Aberdeen City and the suburbs had risen by 3.3%, with the annual house price change for the same area rising by 4.9% since the previous quarter. However, the annualised house price change over five years in Aberdeen City and suburbs had dropped by 3.7%. John MacRae, chairman of the board of directors of ASPC, said the report had produced “unexpected” results. He said: “The report released by the Centre for Real Estate Research at the University of Aberdeen Business School, for the fourth quarter of the year, has produced a surprise. “Normally, even in years when our local housing market had been active, the last quarter would disclose a lessening in activity as the year drew to a close. “In 2020, we have seen the fourth quarter produce the unexpected result of positive movements across two out of three categories. “This is a surprise to me, and a rather welcome one, at that. Let me hasten to dampen speculation that this may herald a return to rising prices – I think the figures may be reflecting a particular set of circumstances rather than a trend. “As we all know last year was very different, with an almost complete cessation of activity from late March until mid-summer, because of lockdown. After lockdown ended, our market recovered quickly and activity was at a high level, presumed to be solely down to a “catch up” effect.” “While sales were at a healthy level, we did not think prices were affected to any great extent. “The latest figures show that prices did feel the effect of the increased activity, with the fourth quarter showing increases for quarterly and annual indices. The quinquennial index, however, remains a negative figure (-3.7%).” John said properties which were well-presented sold close to, or at, valuation. He added: “One thing that was noticeable in late 2020 was that properties coming to market that sold well, were presented well. ‘Staging’ a property is now more important than ever in our very competitive market and sellers should take the time and make the effort to plan their marketing, taking time to assess weak points, and, where possible, address them. “In the last quarter of 2020, those properties that were well presented sold close to, or at, valuation.” Shell and BP announced this week that the North Sea will remain core areas for them so good news you would think. The effect though is more nuanced in terms of jobs etc as well put in this article - looks like the focus is on them being cash cows with little new development. May be better in long term for the North Sea if they pulled out altogether and allowed in more ambitious players. https://www.heraldscotland.com/business_hq/19062925.oil-giants-set-invest-north-sea-projects/ Quote The implications for investment in the North Sea and jobs are sobering. With the oil and gas businesses set to be run as cash engines it seems unlikely that BP will invest in the kind of big greenfield developments that would provide most benefit for the supply chain. Relatively small-scale projects close to existing assets may be the best that can be hoped for. BP will maintain a relentless focus on costs in an area in which it cut hundreds of jobs during the last downturn. The company is in the process of shedding 10,000 jobs around the world, 11 per cent of the total, to help cope with the challenges posed by the coronavirus crisis and to get it in shape for the energy transition. It has not said how the cuts will impact on the North Sea business run from Aberdeen. However, North Sea jobs numbers appear to have fallen in recent months. The company employs around 1,000 in its North Sea business, compared with 1,150 in June. Quote Link to comment Share on other sites More sharing options...
shortbread Posted February 8, 2021 Share Posted February 8, 2021 Unlike ASPC/Evening express combo; Stewart Milne claim 'the long-term collapse in the housing market around Aberdeen in the wake of the oil price crash'. But what would Stewart Milne know?! Quote Stewart Milne falls to £48m loss ‘Material uncertainty’ over firm’s future noted in Scottish housebuilder’s accounts despite revenue growth Aberdeen-based housebuilder Stewart Milne has crashed to a £48.5m pre-tax loss in its latest annual results, which included a £38.1m write-down largely related to its pipeline of North east Scotland sites hit by the collapse in the oil price. The loss came despite strong growth in turnover to £378m. The firm’s accounts, signed off by auditors only at the end of last week, said the combination of the need to refinance a £175m loan facility by March 31 this year, and financial modelling of a “severe but plausible downside scenario” meant there was a “material uncertainty” over the ability of the group to continue as a going concern. The firm said the losses came after it performed a “fundamental strategic review of the business” in order to set it up for profitability in future years, responding to the long-term collapse in the housing market around Aberdeen in the wake of the oil price crash. House prices in Aberdeenshire have fallen by more than 10% over the last five years given the area’s economic reliance on the oil industry. The firm’s write down included a £28.2m provision for land in North east Scotland impacted by the collapse of the housing market there since the oil price falls in 2015. The firm said it built 1,067 homes in the period, up from 833 for the year to June 2018. https://www.housingtoday.co.uk/news/stewart-milne-falls-to-48m-loss/5110202.article Quote Link to comment Share on other sites More sharing options...
Oily Posted February 8, 2021 Share Posted February 8, 2021 2 hours ago, shortbread said: Unlike ASPC/Evening express combo; Stewart Milne claim 'the long-term collapse in the housing market around Aberdeen in the wake of the oil price crash'. But what would Stewart Milne know?! https://www.housingtoday.co.uk/news/stewart-milne-falls-to-48m-loss/5110202.article "severe but plausible downside scenario" ..... who does their forecasting - Imperial College?! “material uncertainty” over the ability of the group to continue as a going concern .... reading between the lines I wonder if there's going to be a major problem refinancing the loan in March. I played golf with one of SM's ex-directors a few years ago and he intimated the Countesswells development was a serious error. Quote Link to comment Share on other sites More sharing options...
shackleford Posted February 10, 2021 Share Posted February 10, 2021 https://www.eveningexpress.co.uk/fp/news/local/aberdeen-residents-hit-out-following-consultation-process-for-new-homes/ I liked this quote: “More homes are not required. At present thousands of homes are being built in Aberdeen. Even before downturn in oil, high street etc there were too many being built in Bridge of Don. People are now picking up new builds for £10s thousands under valuation as they just aren’t selling. This in turn is devaluing all properties in Bridge of Don.” Quote Link to comment Share on other sites More sharing options...
Ignorantbliss Posted February 10, 2021 Share Posted February 10, 2021 Another 250 flats for the city centre, with the added background hum of the railway station to add to the ambiance. https://www.scottishhousingnews.com/article/cater-group-outlines-redevelopment-plan-for-aberdeen-s-atholl-house Quote The new owner of Atholl House in Aberdeen has lodged proposals to transform the former office block into around 250 flats. Cater Group, which confirmed the acquisition of 84-88 Guild Street last month, also plans to include around 16,150sq ft for commercial and retail space. Client executive of Cater Group, Glen Smith, said at the time: “It’s great to announce the acquisition of this site, it’s such a fantastic location in the heart of the city centre. This is a milestone for Cater Group, and an exciting opportunity to contribute to the regeneration of Aberdeen City Centre.” A proposal of application notice has now been submitted to Aberdeen City Council, indicating its intent to lodge plans for the major development. Cater plans to hold a public consultation on designs for the site online this month. A spokesperson told our sister publication Scottish Construction Now: “We hope this landmark development will work in great synergy with other regeneration projects such as Union Terrace Gardens and Aberdeen Art Gallery, to breathe life back into the city centre.” Quote Link to comment Share on other sites More sharing options...
shortbread Posted February 11, 2021 Share Posted February 11, 2021 Whether one likes them or not, this was a political masterstroke by the SNP. The rival parties had no options but to oblige! Accept the handout Holyrood gives them and freeze council tax, let SNP take the brownie points from the public OR decline, hike council tax and let SNP point fingers! Quote Aberdeenshire Council agrees to freeze council tax to help residents after ‘incredibly difficult’ year At the Scottish budget last month, Finance Secretary Kate Forbes announced a £90m fund to compensate local authorities who opt to keep their council tax the same for the upcoming year. The compensatory cash – £4.7million for Aberdeenshire – is the equivalent of around a 3% increase for councils that decide to freeze its council tax. Opposition group the Democratic Alliance had argued against the proposal, moving an amendment for the offer to be refused and warned it could have a long-term impact on services and mean more cuts. Today, councillors voted by 59 votes to four to accept the offer, meaning the council tax for an average band D household will remain at £1,300.81 for the year ahead. https://www.pressandjournal.co.uk/fp/news/aberdeenshire/2893696/aberdeenshire-council-agrees-to-freeze-council-tax-to-help-residents-after-incredibly-difficult-year/ Quote Link to comment Share on other sites More sharing options...
quine Posted February 12, 2021 Share Posted February 12, 2021 https://www.aspc.co.uk/search/property/394242/98-Leslie-Terrace/Aberdeen/ 98 Leslie Terrace AB25 3XB "price around £120k" Last sold 2007 for £310k. Ouch. https://espc.com/property/98-leslie-terrace-aberdeen-ab25-3xb/35198724 Quote Link to comment Share on other sites More sharing options...
Tea Posted February 12, 2021 Share Posted February 12, 2021 7 hours ago, quine said: https://www.aspc.co.uk/search/property/394242/98-Leslie-Terrace/Aberdeen/ 98 Leslie Terrace AB25 3XB "price around £120k" Last sold 2007 for £310k. Ouch. https://espc.com/property/98-leslie-terrace-aberdeen-ab25-3xb/35198724 That is a pretty wild reduction, though it's being sold by a mortgage lender so definitely a repossession. Also, it's got a 3 for damp/rot/infestation on the home report but still, £1000/sqm for a 4 bed city centre flat (that may/may not require a few thousand quid in repairs) isn't bad given the £190k reduction on previous selling price. Also, it's got a plaque! Quote Link to comment Share on other sites More sharing options...
Tea Posted February 13, 2021 Share Posted February 13, 2021 Plans approved for a 284 home development at Blackdog: https://www.pressandjournal.co.uk/fp/news/north-east/2890594/new-blackdog-homes-approved/ Quote Link to comment Share on other sites More sharing options...
quine Posted February 16, 2021 Share Posted February 16, 2021 62 Queens Crescent, price over £170k (under offer) Rightmove previous prices below. https://www.aspc.co.uk/search/property/395729/62-Queens-Crescent/Aberdeen/ Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 16, 2021 Share Posted February 16, 2021 https://www.mirror.co.uk/news/uk-news/couriers-delivering-amazon-earn-little-23496372 Andy Cooper, 56, says he was told he could make £127 a day. But after forking out £207 a week for van hire and getting just two shifts a week he says his take-home in one week was just £48. A former oil industry project manager, he quit after three months. He claims he was expected to deliver more than 250 parcels in nine hours Strange that. All the oilies I know have assured me many many times their high earnings are down to their skills and hard work. It doesnt matter what the trade or industry in, with a bit of offshore hardwork and skill and offshore 'cando', theyll soon earn 70k++ Quote Link to comment Share on other sites More sharing options...
Ignorantbliss Posted February 16, 2021 Share Posted February 16, 2021 On 13/02/2021 at 10:52, Tea said: Plans approved for a 284 home development at Blackdog: https://www.pressandjournal.co.uk/fp/news/north-east/2890594/new-blackdog-homes-approved/ I would love to know just how many houses and flats in total are now in the process of being built within a 20 mile radius of Aberdeen as large developments like this keep getting announced every few weeks. The builders optimism is verging on hubris though when you read stories like this about the Aberdeen economy. https://www.pressandjournal.co.uk/fp/news/aberdeen/2887282/people-are-grasping-at-straws-torry-bread-maker-cites-difficult-aberdeen-job-market-as-hundreds-apply-for-shop-assistant-vacancy/ Quote The scale of the employment crisis in one Aberdeen community has been laid bare after a shop assistant vacancy at a bakery attracted more than 300 applicants. Gary McAllister, owner and head baker of The Bread Guy in Torry, said the situation is reflective of the “difficult situation” that has left many “grasping at straws” in the north-east jobs market. The applications, which took Mr McAllister and has staff three weeks to get through, came from applicants between 16 and 65 years of age. He said: “The applications came for all over Aberdeen, it wasn’t just Torry. “I think it is due to the current economy and the way things are right now with people being furloughed left, right and centre. Quote Link to comment Share on other sites More sharing options...
regprentice Posted February 17, 2021 Share Posted February 17, 2021 (edited) 21 hours ago, spyguy said: https://www.mirror.co.uk/news/uk-news/couriers-delivering-amazon-earn-little-23496372 Andy Cooper, 56, says he was told he could make £127 a day. But after forking out £207 a week for van hire and getting just two shifts a week he says his take-home in one week was just £48. A former oil industry project manager, he quit after three months. He claims he was expected to deliver more than 250 parcels in nine hours Strange that. All the oilies I know have assured me many many times their high earnings are down to their skills and hard work. It doesnt matter what the trade or industry in, with a bit of offshore hardwork and skill and offshore 'cando', theyll soon earn 70k++ That's the slow drift to mandatory self employment. It's happening everywhere, As a project manager I'm sure he was happy to be contracting outside ir35 on £500+ a day, expensed lunches at the silver darling, Friday afternoons playing golf while after submitting his timehseet for the week.... now he has the shitty end of the self-employed stick, buy your own equipment, you get paid for the work done, not the hours it takes, no guarantee of work today or tomorrow, no holidays or health cover, pay agency fees, pay payroll fees, pay your own employers NI, no expenses, no dividends, and nowadays for anyone who drives watched every second by a GPS box that will penalise him If he doesn't drive and deliver fast enough. I know a council employed greenskeeper who turned up for his interview expecting to become a council employee with a decent pension, he was told he need to be employed via an umbrella company if he wanted the job. After his umbrella takes off the fees and employers NI he's pretty much on the minimum wage. His mate said to him why not use your own company and avoid the Emp NI but he can't as the council will only recognise 'listed approved' traders which is just his agency. The employers and the agencies have that nicely stitched up Edited February 17, 2021 by regprentice Quote Link to comment Share on other sites More sharing options...
shortbread Posted February 18, 2021 Share Posted February 18, 2021 (edited) Aberdeen fall continues Aberdeen becomes the only city to record a fall in the current buoyant market at -2.1%, in the last month of 2020. Scotland on the other hand saw a 8.1% jump in prices over the calendar year. Aberdeen city average price Dec'18: £152,090 Dec'19: £145,717 Dec'20: £142,631 Quote Scotland house prices increased by 8.4% in the year to December 2020, up from an increase of 8.1% in year to November 2020. House prices increased over the year in 29 out of 32 local authority areas. The largest growth was in East Ayrshire where prices increased by 17.9% in the year to December 2020 to £111,000. The biggest fall for year ending December 2020 was recorded in City of Aberdeen where average prices fell over the year by 2.1% to £143,000. Volumes Volumes saw a big jump across Scotland Quote Comparing the provisional volume estimate for October 2019 with the provisional estimate for October 2020, volume transactions increased by 31.9% in Scotland. https://www.gov.uk/government/statistics/uk-house-price-index-scotland-december-2020/uk-house-price-index-scotland-december-2020 Edited February 18, 2021 by shortbread Quote Link to comment Share on other sites More sharing options...
Ignorantbliss Posted February 19, 2021 Share Posted February 19, 2021 Diversification of the Aberdeen economy - https://www.eveningexpress.co.uk/fp/news/local/filming-for-hollywood-movie-tetris-begins-in-aberdeen/ Not so sure its a compliment that the Zoology building and Tillydrone in general can portray 80s Russia with minimal work! And another building conversion to flats - this time the old Mariner Hotel. Another overdevelopment, squeezing 12 properties into that small space. https://www.scottishhousingnews.com/article/mariner-hotel-housing-plans-approved-by-aberdeen-councillors Quote Link to comment Share on other sites More sharing options...
shortbread Posted February 22, 2021 Share Posted February 22, 2021 The local rags, EE or P&J rarely comment on the official HM Land Registry monthly house price indexes. Usually they prefer to highlight the 'happier' numbers that ASPC conjures up on a quarterly basis. Somehow this seems to bypassed the chief editors desk and made final print! Albeit ASPC's John MacRae is quite optimistic as he's been seeing encouraging signs! Quote Figures show drop in Aberdeen house prices, while other north-east areas rise House prices in Aberdeen have dropped further than anywhere else in Scotland over the last year. Data released by the UK Government on the House Price Index for the UK for December 2020 shows house prices have risen in Scotland by 8.1% However, Aberdeen suffered the biggest fall in Scotland where prices declined by 2.1 The average price for a home was £142,631 in December 2020, compared to £145,717 in December 2019. In Aberdeenshire, there was a slight rise of 1.6% recorded, with the average price of a home selling for £183,687, compared to £180,745 in December 2019. Moray also saw an increase in prices, moving from £149,102 at the end of 2019 to £161,725 in December 2020 – an 8.5% rise. John MacRae, chairman of ASPC, said: “The local market has been on a declining basis since 2014. The reasons are difficult to be certain of but a diminished local economy, a sharp increase in new house building and a general lack of uncertainty as to the future, all contributed. We are waiting to see how things go this year, following on from the midwinter break. So far things are reasonably active, with insertions and sales showing encouraging signs. I expect that, despite the encouraging year-end, overall the year may have shown a negative figure but we may be seeing things improving, if only to the extent of decline slowing.” A statement from ONS said: “Scotland house prices increased by 8.4% in the year to December 2020, up from an increase of 8.1% in year to November 2020. House prices increased over the year in 29 out of 32 local authority areas. The largest growth was in East Ayrshire where prices increased by 17.9% in the year to December 2020 to £111,000. The biggest fall for the year ending December 2020 was recorded in the city of Aberdeen where average prices fell over the year by 2.1% to £143,000." https://www.eveningexpress.co.uk/fp/news/local/figures-show-drop-in-aberdeen-house-prices-while-other-north-east-areas-rise/ Quote Link to comment Share on other sites More sharing options...
Ignorantbliss Posted February 24, 2021 Share Posted February 24, 2021 https://www.eveningexpress.co.uk/fp/news/local/mon-done-aberdeen-commercial-property-market-continues-to-grow-firm-says/ Quote Aberdeen commercial property market continues to grow, firm says CBRE has released its market overview for Scotland in 2020, stating it had been a “remarkable year of resilience for the industrial market in Scotland”, despite the wider challenges caused by the Covid-19 pandemic. The firm said the Aberdeen commercial property market had seen growing activity for the fourth year in a row, despite challenges to the wider economy of the city caused by both the drop in oil prices and the Covid-19 pandemic. CBRE said that in 2020, there was a total take-up of 720,780sq ft, an increase of 1% on 2019’s totals. It added that small transactions made up the bulk of the market, with 41 lettings concluded below 3,000sq ft, and 65 below 10,000 sq ft. Large lettings, in the 30,000 sq ft plus bracket also saw a slight increase, with deals to Amazon and FedEx concluded. Iain Landsman, associate director in the CBRE Aberdeen office said: “In Aberdeen the largest transactions were all for the best quality stock or pre-lets. “This demand should result in further industrial development within the city and force landlords to upcycle and refurbish older industrial properties coming to the end of their lifecycle.” Following the third quarter of the year, office take-up had risen almost 150% from the previous quarter of the year. Office take-up in Aberdeen totalled 81,723 sq ft, a drop of 33% from the same period in 2019, but was up almost 150% from the previous quarter. David Reid, associate director in CBRE Scotland’s industrial and logistics team, added: “We expect 2021 to be another strong year for our market in Scotland. The incredible take-up during 2020 has resulted in critically low stock levels and with continued strong demand we urgently need new speculative development to meet the future needs of occupier requirements. We are working with a number of developers to plug this shortfall in supply. “The year ahead is anticipated to bring occupier focus on building more resilient supply chains, increasing capacity and diversifying suppliers to safeguard against future disruptions. “With Covid accelerating online demand for retail, we also predict increased demand for last mile logistics properties as retailers seek to move closer to their customers. This strong demand, coupled with a shortage of available land, should result in funding being made available for speculative development. “In addition, we expect occupiers to increasingly focus their efforts on reducing their carbon footprint as the sustainability credentials of their real estate move quickly up the list of priorities, particularly in new build bespoke developments.” Brent Oil has jumped $10 in the last month (now $65.90 at time of writing)so back to pre-Covid levels. If nothing else this will boost the morale of what's left of the industry. Meanwhile, the Aberdeen building boom continues, let's add another 213 new houses to the tally. https://www.scottishhousingnews.com/article/aberdeen-details-plans-for-more-than-200-homes-at-former-school-site Quote Aberdeen details plans for more than 200 homes at former school site Aberdeen City Council has lodged detailed plans to build 213 homes for rent on the site of the former Kincorth Academy. The development off Cairngorm Drive will comprise a mix of unit types with shared residential streets, parking and external amenities. Kincorth Academy closed in summer 2018 after a new multi-million-pound school was built at Lochside, bringing together pupils from Kincorth and Torry. Led by Atkins and Rankin Fraser, the development is one of several sites across Aberdeen which form part of the wider Aberdeen City Council Housing Programme 2020 aiming to address a long-term shortage of affordable social rented housing in the city. A planning application has been submitted for 99 homes to be built in the Craighill area, with another for 72 new council homes in Tillydrone due to be submitted shortly. Quote Link to comment Share on other sites More sharing options...
regprentice Posted February 25, 2021 Share Posted February 25, 2021 (edited) 22 hours ago, Ignorantbliss said: https://www.eveningexpress.co.uk/fp/news/local/mon-done-aberdeen-commercial-property-market-continues-to-grow-firm-says/ Brent Oil has jumped $10 in the last month (now $65.90 at time of writing)so back to pre-Covid levels. If nothing else this will boost the morale of what's left of the industry. Meanwhile, the Aberdeen building boom continues, let's add another 213 new houses to the tally. https://www.scottishhousingnews.com/article/aberdeen-details-plans-for-more-than-200-homes-at-former-school-site My Grans house overlooked Kincorth Academy, learned to swim there. Surely no one in their right mind will buy a new build hemmed in on all sides by the doric version of beiruit? It gets a real warzone vibe when they set fire to the grass on the kincorth hill at the back as part of their annual brush clearing routine. Orange skies, drifting smoke and the occasional siren/blue flashing light. Edited February 25, 2021 by regprentice Quote Link to comment Share on other sites More sharing options...
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