Million pound property sales have fallen to their lowest level since 2009, according to research by Bank of Scotland.
There were 132 property sales worth at least one million pounds in Scotland in 2011, a fall of 11% from 148 in 2010. This is the lowest number of sales since 2009 and more than double the percentage decline across the UK as a whole.
In total, there are now an estimated 3,0001 homes in Scotland worth at least one million pounds.
Million pound property sales underperform the rest of the market
The 11% fall in million pound property sales in 2011 was almost double the fall in sales across the rest of the housing market. Overall, total home sales in Scotland fell by 6% from 74,747 in 2010 to 70,035 in 2011.
Scotland sees fifth biggest drop in million pound sales
Scotland recorded the fifth largest fall in million pound sales in the UK. The West Midlands saw the biggest drop in million pound sales, followed by the North West of England. London saw a slight fall, while Wales, the North East of England and the East Midlands were the only areas to see a rise in million pound sales, although these increases were from a very low base.
Unsurprisingly, London and the South East of England continued to account for the overwhelming majority of all million pound sales in the UK in 2011.
Nearly half of all Scottish million pound property sales were in Edinburgh
In Edinburgh in 2011, 61 homes were sold for at least one million pounds, accounting for 46% of all million pound sales in Scotland. This was substantially higher than anywhere else in Scotland and the second highest in Britain outside of the South East of England and London. Aberdeen City recorded the second highest number of million pound sales in Scotland, followed by Glasgow.
Over the past year, Edinburgh was the only one of these three Scottish cities to see a fall in million pound sales. Aberdeenshire and East Renfrewshire were among the other areas to experience a decrease in sales in Scotland.
Nitesh Patel, Bank of Scotland Housing Economist, said:
“The number of homes in Scotland sold for at least a million pounds has declined over the past year, reflecting the generally weakening picture across the Scottish housing market. However, despite this, the prospects for the very top end of the housing market remain relatively good with demand from wealthy cash rich buyers, both in Scotland and further afield, as limited supply is likely to continue to help support this segment of the market.”