Are property prices falling in Perth?

18/10/2023

BOASTING a magnificent setting on the banks of the River Tay, Perth is one of Scotland’s lesser-known cities. But it’s slowly garnering a reputation as one of the best places to live in the country, with a quality of life that you don’t find everywhere. 

Considering the recent fluctuations in the property market, you might be wondering if the prices in Perth are falling, as has been seen in many areas across the UK. In this article, learn how the real estate market in Perth and Kinross is currently trending and why that’s the case. 

To get a better idea of the properties that are available in Perth, you can check out the listings at this source. It showcases rental properties in Perth and beyond, giving potential tenants and investors an idea of monthly rents and returns. It’s also a great resource if you’re thinking of purchasing a short-term rental investment property in the Perth area. 

Property prices in Perth

Over the last year, property prices in Perth were around £199,827, which was 6% up on the previous year. Compared to 2020 when the market last peaked in Perth, property prices in the city are up by 18%. 

So to answer the question as to whether property prices are falling in Perth, the answer is a resounding “No”. The city has experienced strong growth in recent years and doesn’t show any signs of slowing down soon, despite rising interest rates. 

When looking for properties in Perth, you’ll find everything from early Victorian residences to stately Georgian townhouses and modern apartments. While a terraced home or cottage will set you back around £180,000, large detached residences start from around £350,000. 

The real estate market in Perth is slightly cheaper than the broader Perth and Kinross council area where average home prices are around £228,138. It is, however, more expensive than in nearby Dundee where the average price for property over the last year was £170,185. 

Compared to the Scottish capital, Edinburgh, Perth is a significantly cheaper place to purchase property. Over the last year, the average property price in Edinburgh was £337,425, which is a 3% increase from the previous year. 

Why property prices are rising in Perth

While the relatively affordable cost of Perth property over recent years has been an incentive to invest in the city, there are several other reasons why people are choosing to purchase here. A good quality of life is not only essential for new residents to any city but also for landlords looking to attract long-term renters or short-term holiday stay guests. And Perth offers this in spades!

Competitive house prices are one of the reasons why 85% of the city’s workforce chooses to reside in Perth, coupled with its scenic surroundings and cultural offerings. Perth has been nicknamed the “Fair City” due to its attractive setting on the River Tay, surrounded by the dramatic mountains, glens and lochs of Highland Perthshire. 

Residents and landlords alike are attracted to Perth because of its good public transport connections, with both Glasgow and Edinburgh accessible by train in just over an hour. Aberdeen is 1.5 hours away by rail while Dundee can be reached in less than 30 minutes. If you’re looking to escape the city on the weekend, less than an hour’s drive will see you in the magnificent Cairngorms or the Trossachs National Park. 

When it comes to schools, Perth has more than 60 primary schools and 9 secondary schools, not to mention dozens of nurseries to choose from. It boasts a combination of state-run and independent educational facilities, with several recommended as “very good” and “excellent” by Education Scotland. This is a big draw for families looking to move to Perth, sound in the knowledge that their children’s education is in good hands. 

Perth’s arts and cultural scene is among its allures, with plenty of festivals, exhibitions and events taking place here throughout the year. Orchestral performances and touring international acts are held at the Perth Concert Hall while dramatic plays are regularly showcased at the Perth Theatre. Perth is also within a short drive of the Pitlochry Festival Theatre, a unique Highlands venue with stunning river views. 

When it comes to eating out, Perth’s residents and visitors are spoiled for choice, with everything from international chains to independent cafes and two-star Michelin restaurants in the city. In the centre alone, you can dine on everything from Indian to Japanese and Italian cuisine, as well as Chinese with a distinctly Hong Kong flavour. 

Perth’s appeal is also due to its proximity to the great outdoors, making it a paradise for anyone interested in hiking, cycling or rafting. It’s a great base for “Munro bagging”, with several 3,000+-foot peaks in the area, and there are plenty of family-friendly adventure activities on offer. Closer to the city centre you’ll find leisure centres, gyms and yoga studios where you can find your inner zen. 

It’s this combination of transport connections, cultural attractions and community facilities that make Perth such a great place to live and contribute to its steadily rising property prices. 

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