Scottish commercial property sales continued to fall in the second quarter of 2019, with the total value of sales falling to its lowest value for five years, according to the latest analysis from Scottish Property Federation (SPF).
In total, £614 million was transacted on commercial property in Scotland during Q2 2019, which was down £149 million (20%) on the previous quarter and £70 million (10%) on the same quarter (Q2) in 2018.
The total value of commercial property transactions in Aberdeen dipped to £30 million in Q2 2019, falling £11 million (27%) compared to the first quarter of the year and £93 million (76%) on Q2 2018. The total value of commercial sales in Aberdeen in Q2 2019 was the lowest figure for a second quarter in over seven years.
Edinburgh lost its dominance to Glasgow in Q2 2019 following a significant fall in the total value of commercial property sales. At £108 million, the city’s sales were down £156 million (59%) on the previous quarter and £14 million (11%) on Q2 2018. Edinburgh’s share of the total value of commercial property sales in Scotland fell from 35% in Q1 2019 to 18% in Q2 2019; however, its share of the market is relatively unchanged when compared to Q2 2018.
Glasgow In Q2 2019, the total value of commercial property sales in Glasgow surpassed Edinburgh for the first time since 2015, with sales totaling £172 million. The total value of commercial property sales in Glasgow gained on the totals for the previous quarter and on the same quarter (Q2) last year, by £27 million (19%) and £68 million (65%) respectively.
”Glasgow very impressive this quarter, outperforming Edinburgh for the first time in four years against a wider Scottish market that saw a reduced value of sales activity. Glasgow’s sales increase was fuelled by a number of £5m-plus deals, totalling £129m, whereas Edinburgh only secured £33m in the same category,” said David Melhuish, SPF director.
“A notable feature of Scottish commercial property investment in the Q2 period was the rise of capital sourced from Asia, which topped £250m for the first time on record, according to CoStar data.Ryden reported a standout £48m transaction for a Korean client of Knight Frank Investment Management,” he added.