House prices are dynamic, and it’s no different in Aberdeen. The house prices in Aberdeen have continued to drop – whether that’s good or bad depends on whether you’re buying or selling.
As a homeowner, this can be a worrying trend. Having to sell at a far lower price than the initial purchase price can be a severe blow.
Conversely, for potential buyers, this could be a good time to purchase a property. That is with the belief that the price will go up in the future.
However, getting a clearer idea as to what is affecting property prices can be beneficial for both homeowners and homebuyers.
Therefore, in this article, we’ll be taking a look at some of the reasons why house prices are falling.
How have house prices changed in Aberdeen over the past year?
The overall average price for houses sold in Aberdeen over the last year was £186,087. This was 5% lower than the year before. Meanwhile, house prices across Scotland rose by 5.5%.
This is quite significant when comparing Aberdeen to the rest of Scotland. However, this brings us to our next point; this isn’t a new phenomenon.
What has Aberdeen’s housing market been like over the past ten years?
Aberdeen has continually suffered from a loss in house value over the past ten years. In fact, in 2012, the average house price was £160,561, while the average price in 2022 was £144,615. That’s a drop of almost 10%.
What’s more shocking is that 17 years ago, the average house value was £296,273. This represents a large drop in property value.
When compared to property trends elsewhere across the UK, it is quite an anomaly. In fact, Aberdeen has been found to be the only location where property prices have dropped rather than increased.
Could Aberdeen’s reputation be to blame?
You may be thinking the Granite City has never looked so grey before. However, the city’s property market has been turbulent for some time. It has been a hot topic in identifying the specific reasons why property prices have fallen in Aberdeen.
One such reason that has been suggested is that property prices are directly correlated with the oil industry. The oil market suffered significantly during the last decade, resulting in Aberdeen as a city going bankrupt, not to mention the loss of jobs for many involved in the industry.
As a result, due to job loss and reduced appeal for living in the city, landlords and homeowners looked to sell their property. Often trying to sell as quickly as possible and for whatever they could get.
The resultant impact of this is a high supply, low demand situation, which further reduces the value of properties both in rent and value.
Moreover, whenever an area is heavily reliant on a defunct industry, the local population suffers. As many lose jobs, they will then venture to other locations where they can secure employment. Aberdeen City is no different; where before, many would move to Aberdeen on the basis of securing jobs, many have opted to move elsewhere where there are more opportunities.
Unfortunately, it takes time for a city to rebuild its image to attract new residents. However, it isn’t impossible either.
What are the perks of living in Aberdeen?
Aberdeen, to some, may seem very grey and bleak. The buildings and weather aside, Aberdeen can still be a great place to live.
Aberdeen is home to two world-renowned universities; The University of Aberdeen and Robert Gordon University. Both of which receive applicants and attendants from all around the world. Living in close proximity to these universities opens up the doors to educational advancement without having to undergo long commutes.
Aberdeen has a plethora of transport opportunities. Connected by land, road, and air, Aberdeen can be a great place to set up a base and commute to work. Added to this, lower rent prices can mean commute costs and daily livability, bridging the gap for any perceived negatives.
Additionally, with a lower cost of living, those on lower incomes may be able to purchase property in Aberdeen compared to other major cities. This provides accessibility in purchasing a property.
While the oil and gas industry has suffered greatly, Aberdeen is still an important location. As such, job opportunities are still available and can be a great place for those looking to build on their careers. Similarly, Aberdeen has also opened up the doors to renewable energy, which is an emerging sector that can also offer opportunities.
Scenery and Atmosphere
Aberdeen’s scenery is comparable to the rest of Scotland. It can be quite cold and dreary during winter. However, being a coastal city, there are a few beaches available to visit, such as Balmedie Beach. Alternatively, Cove Bay offers delightful scenery and views of the North Sea.
There is also plenty in the way of historical architecture, from museums, landmarks, and buildings made of Granite.
The atmosphere in Aberdeen is also quite welcoming. Featuring the Scottish charm and friendliness of the locals. You’ll feel welcomed and at home as you wander the city. Additionally, Aberdeen is well-known for its nightlife. From the whisky dens to historical pubs and nightclubs – Aberdeen has something for everyone.
The Aberdeen Housing Market
Aberdeen continues to face a supply and demand issue when it comes to property. With not enough demand, prices are unlikely to return back to the heights of property value that the city experienced in 2006. However, that could change depending on how the city continues to evolve.
Meanwhile, those looking to move to greener pastures but currently being held back by waiting for a buyer to come along will experience a long wait.
However, for those looking to sell a house fast in Aberdeen, We Buy Any Home is available to act as cash house buyers. No matter what the condition, the type, or even the value of the property, We Buy Any Home can make a cash offer to purchase your property.