The average selling price of a house in Edinburgh increased by 7.1% in the last quarter of 2015 compared to the same period of 2014, with one bedroom flats in Tollcross, Polwarth and Shandon soaring 27%, according to the ESPC.
ESPC said the 27% jump could be attributed to the Tollcross-Polwarth-Shandon area becoming a popular place for first time buyers and for buy-to-let investors.
A shortage of homes for sale in the Edinburgh area means houses sold on average within 35 days compared to 53 days in the same period a year earlier.
Other areas around the Scottish capital with dramatic price increases include South Queensferry and Dalmeny, where the average price of a three bedroom house increased by 20%, and Leith, the Shore and Granton, where a two bedroom flat increased in average price by 19.1%.
For east central Scotland overall, average property prices increased by 4.9% between October and December 2015.
The price increases in general could partly be explained by a 6.1% decrease in homes being put on the market compared to October and December of 2014, ESPC said.
“We’ve seen a decrease in the number of new homes being brought to market,” said ESPC business analysis Maria Botha Lopez.
“We are seeing that properties are selling quickly as a result of competition for available properties, with properties now selling 33.5% faster when compared to the same three-month period a year ago — from 53 days down to 35 days.
“This is a good time for sellers to bring their properties to market, as they have a good chance of their properties being sold quickly, and meeting the Home Report valuation.”