The number of residential transactions across Greater Glasgow increased by 4% last year, with the strongest growth witnessed in East Dunbartonshire (8%), West Dunbartonshire (7%) and South Lanarkshire (7%).

Activity in Dunbartonshire was boosted by strong second hand and new build markets in the hotspots of Bearsden and Lenzie.

The South Lanarkshire market was most active in the suburban locations bordering Glasgow, including Uddingston. Within South Lanarkshire, the sought-after town of Strathaven has seen a significant increase in transactions, boosted by new build developments.

New build activity gathers pace

Annual transactional growth in the city area of Glasgow witnessed a 3% annual rise in transactions, mainly due to lower growth in the price bands up to £150,000. However, new build transactions increased by 15%, supported by a number of developments in edge of town locations and regeneration sites.

New build activity is gathering pace in the established central locations of the city that have seen very little supply over the last decade. Pent up demand is resulting in some prices per square foot exceeding £500 at trophy sites in the West End and Park, such as The Botanics and Park Quadrant Residences.

Strong level of demand in prime markets

Prime markets in the traditional city and suburban hotspots made a roaring comeback during 2017. The number of transactions in the area covering Glasgow’s West End, Park, Partick and Jordanhill increased by 55% to 263. Strong premiums are being achieved where a significant level of demand can be channelled to properties that are well-presented and launched to the market at realistic prices.

However, the average prime transaction price in this area fell from £565,596 to £550,993. This was due to an increase in transactions between £400,000 and £500,000 coupled with low supply and higher rates of LBTT above £750,000.

Greater Glasgow’s prime residential market above £400,000 recorded its highest total in five years, with 1,234 transactions during 2017. This followed two years of little movement in activity as the market adjusted to LBTT, with the exception of East Renfrewshire where prime transactions continued to grow.

Prime market activity across Greater Glasgow was at its strongest up to £750,000. However, the market above this level has improved, with 95 transactions during 2017 compared to 84 in 2016.

^{Source: Savills Research}

Suburban hotspots

In Bearsden and Milngavie, the number of prime transactions increased by 53% to 200 last year. The prime market in the southside suburban hotspots of Newlands and Pollokshields had seen little upward movement in activity between 2013 and 2016. However, last year saw 71 prime transactions in this area, which is the highest annual number since 2007.

Compared to the West End hotspots, suburban areas offer lower prices per square foot and this was reflected in the slight increase in the average prime transaction price in such areas, as buyers seek better value for money.