HOUSE prices in two of Scotland’s most upmarket suburbs are expected to soar by 20% over the next five years.
Properties in Edinburgh with EH9 and EH10 postcodes – which include Merchiston, the Grange, Newington and Morningside – have already seen values increase between 1.4%and 1.8%, despite plunging prices elsewhere.
The sale of JK Rowling’s former home in Merchiston appears to be a sign of things to come after it was snapped up quickly for well over £2m.
Edinburgh Solicitors’ Property Centre revealed that the average house price across the city had fallen by 6% with November the fourth consecutive month where an annual decline was recorded.
Despite that, Rettie and Co predict a 20 per cent rise in upmarket areas over the next five years.
Director James Whitson said: “In Edinburgh, there has always been an aspiration to live on the south side.
“If you are going to send the children to Watson’s or Merchiston or Heriot’s, you have got a standard of life where the children can walk to school, which is pretty attractive.
“On top of that, you have got some good communities with great restaurants and shops, you can get out of town quickly or into the centre in ten minutes. It ticks all the right boxes.
“Our problem in both areas is we don’t have enough property to match the demand. The reality in the current climate is that quality property in a prime location and current pricing will sell.”
Almost 400 properties sold for over £300,000 last year in EH9 and EH10 with over £10m in property sold on Alfred Place and £5m on Grange Loan alone.
Blacket Place and Greenhill Gardens had the highest average prices at about £1.2m compared to the Edinburgh average of £220,000.
Rettie and Co found the majority of buyers already lived within the districts and had decided to either downsize or upgrade.
Helen Martin, a homeowner in Grange Loan said she was first attracted to the area because of the stability of the house market and now cannot imagine living anything else.
The 59-year-old added: “People that live in houses worth millions behave the same to people whose houses cost £500,000. It’s quite a mixed area really.
“If I did ever move it would be to a retirement flat or a bigger house in the area if I win the lottery.”
Currently there is a home for sale on Mansionhouse Road, the Grange, which costs £1.3m and includes a heated indoor swimming pool.
There is also a flat on Lauder Road which boasts a decked terrace, two cast-iron balconies and a shared garden with offers starting at £675,000.