The number of £1m-plus house sales in Scotland hit a new annual high last year, research by Rettie reveals, with Edinburgh continuing to “dominate” this segment of the market but Glasgow and the west “catching up”.

East Lothian and St Andrews are also flagged as hot spots for £1m-plus house sales.

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Last year, 506 houses in Scotland were sold for £1m-plus, upmarket estate agent Rettie said today, up from 504 in 2022.

The top postcodes in Scotland for £1m-plus house sales are EH3, EH10, EH9, EH4, EH12, KY16, G12, EH13, EH39, G77, G46, and  G61, Rettie has calculated.

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John Boyle, director of strategy and research at Rettie, highlighted the resilience of the £1m-plus segment of the Scottish housing market during what he described as a “difficult” 2023.

He said: “For the Scottish housing market as a whole, 2023 was a difficult year. However, the overall outcome was not as bad as some had initially feared at the end of 2022. In fact, the average house price was actually up 0.8% for 2023, although market transactions were down nearly 10%.”

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Mr Boyle added: “What is clear is that the prime £1 million-plus market withstood the market headwinds better than the overall market.”

Commenting on this market segment, Rettie observed: “The market remains dominated by Edinburgh, which accounts for 50% of overall sales. However, the west has been catching up, with Glasgow and the rest of the west accounting for 134, £1 million-plus sales last year, representing 26% of all sales and up by 39 sales on the previous year.”

Simon Rettie, managing director of Rettie, said: “Most of the growth in the £1 million-plus market has been in Glasgow and the west, while sales in Edinburgh have fallen back by nearly 20%. This has been due to a combination of higher interest rates and buyer confidence, particularly in the super-prime market, which we classify as houses over £2 million.”

He added: “St Andrews and East Lothian continue to outperform the market with an increasing number of sales over £1m. For 2024, we forecast a gradual improvement in both buyer confidence and the rate of prime sales, aligned with a drop in interest rates.”

The EH3 postcode in Edinburgh, which includes the New Town and west end, is the new number one location for £1m-plus house sales in Scotland, Rettie observed, with 46 sales in 2023, while 2022’s top area, EH10, which includes Morningside, dropped to second spot.

Rettie noted the £1m-plus market in Scotland is “concentrated”, with five Edinburgh postcodes accounting for nearly 40% of all sales.

From fewer than 30, £1m-plus sales in 2017, prime property sales in Glasgow and the rest of the west of Scotland have surged to 134 in 2023, the estate agent observed.

Rettie flagged “continued growth in St Andrews, with the KY16 postcode continuing to be a strong performer as a £1m-plus destination, with 21 sales in 2023”.