The number of houses for sale in Dundee has risen by more than 40% in the last year, according to new research.
Analysis by property firm DJ Alexander shows the average home in Scotland has risen in value by 27% since March 2020.
The firm’s study has also shown a 41% rise in the number of Dundee properties for sale in the past 12 months.
David Alexander, chief executive of DJ Alexander said: “The number of properties advertised for sale in Dundee has risen quite substantially year on year. The volume has increased from 252 to 356.
“Within this, the number of detached and semi-detached homes for sale has risen considerably increasing by 80% and 59% respectively.”
Dundee house prices on the rise
Mr Alexander said the city’s housing market has experienced a 23.5% increase in average house prices since the start of the pandemic.
Between March 2020 to August 2023 average prices have risen from £123,029 to £151,945.
Detached homes in the city have increased in value by 29.4%, from £257,372 in March 2020 to £332,940 in August 2023.
The research also shows prices for semi-detached properties are 27.2% higher over the same period, having risen from £152,131 in March 2020 to £193,549.
Mr Alexander added: “Higher volumes can often be a sign of a softening of prices.
“However, the increase in the volume in Dundee coupled with rising prices would indicate a substantial and prolonged growth in demand, which may be able to absorb the greater supply currently available.
“The city has experienced continuous and strong growth since the pandemic indicating confidence in the marketplace.
“I would expect this to continue with perhaps only a slight softening in prices in the months to come.”
House price boom in other Scottish cities
The research also showed Glasgow had the greatest increase of any Scottish city with average prices rising by 33.5% while Edinburgh and Dundee are both up 21.4%.
The highest gain has been in East Lothian, with prices up 59.7%.
Mr Alexander adds: “These figures show that, despite media concerns that house price increases have slowed in recent months this is actually because they have risen at such an enormous rate since the start of the pandemic.
“Even without higher interest rates there would have to be a slowing of house prices simply because they have been rising at an unusually high pace.
“It is unlikely that these increases can continue in the long term because there must come a point at which affordability issues kick in.
“There will be a stabilising of prices and a return to lower annual increases, but we may not be at that point just yet and some parts of Scotland remain extremely popular.”
