This uptick in values comes on the back of a continued strengthening of demand, with our data showing a year-on-year increase in both new buyer enquiries and property viewings between January and August 2017, up by 21% and 16% respectively.
Sales volumes rose by 3%, Knight Frank data shows, with a notable pick-up at the top end of the market.
Some 17% of all transactions completed by Knight Frank in 2017 were for properties worth more than £1 million, up from 10% for the corresponding period last year and 6% in 2015. Overall, though, data from the Registers of Scotland shows that the top end of the market remains constrained, in terms of sales volumes, by the higher rates of Land and Building Transactions Tax (LBTT).
Demand has focussed on central areas such as New Town, West End, Inverleith and Stockbridge. Agents note that prices equal to, or above, Home Report valuations have been achieved, reflecting the rising levels of confidence among buyers in these markets.
Pricing has also been underpinned by a shortage of properties for sale relative to demand. Our analysis of listings data for Edinburgh shows there were 23% fewer homes listed for sale in the third quarter of 2017 compared with the same period in 2016.
Read the full Edinburgh City Index.