Top end property market in Scotland hit record levels with nearly 500 deals worth £1 million-plus last year, it has been reported.

There were 491 transactions of more than £1 million, including the highest amounts ever paid for residential properties with two castles changing hands.

The total value of £1 million-plus transactions north of the border in 2022 was £715m, according to figures from Savills.

The largest cities dominated, led by Edinburgh, which witnessed a record 287 transactions above £1 million. Glasgow also saw a record, with 31 transactions at this level, and St Andrews registered 16 deals.

Savills is predicting total growth in prime Scotland prices over the five years to 2027 will be 12.7%.

Faisal Choudhry, director Scottish residential research at Savills, says: “Looking ahead, despite increased price sensitivity, sales activity in 2023 so far has been above pre-pandemic levels and going forward will remain underpinned by the value gap, quality of life on offer and the ongoing shortage of well-presented homes in the most sought-after locations.”

Flattened

Meanwhile, DJ Alexander says overall average Scottish house prices flattened, but some geographical areas and property types have not yet peaked

Edinburgh, Glasgow, and Dundee all had average price increases over the year rising by 5.9%, 5.3%, and 4.1% respectively, whereas Aberdeen experienced a fall of 2.7%.

The worst performing property type was flats which were 0.7% lower across Scotland at the end of 2022 compared to the beginning of the year. However, in the detached house sector prices remain strong.

“For some parts of the market this is still something of a boom time.”

David Alexander, CEO at DJ Alexander, which was bought by Lomond recently, says: These figures show that while the overall picture is of a housing sector where prices are flattening and will probably fall in most areas, for some parts of the market this is still something of a boom time.”