The average selling price of two bedroom flats in Edinburgh’s New Town and West End has soared 26.9% over the last three months, according to the latest house price report from ESPC.

As well as showing an increase in selling price to £398,804, the volume of these New Town and West End properties being sold has increased by 18.5%.

“This indicates that the increase in selling price is not solely attributed to a shortage of properties driving up demand,” said ESPC.

“These central flats are achieving on average 13.5% over the asking price, while the average time to sell is 17 days for this area, 31.3% faster than the same time last year.”

ESPC said the time to sell houses across east central Scotland has slowed down over the last couple of months from its peak over the summer, with a median time to sell of 17 days (with Edinburgh at 15 days).

“However, this is more reflective of a seasonal quieting down in the lead up to Christmas,” said ESPC.

“This festive slow-down is also reflected in the 0.9% decrease in the number of homes being sold in east central Scotland over the last three months.”

Other areas proving to be in high demand in Edinburgh include Polwarth, Shandon and Tollcross, all west of the city centre, where average selling prices have increased by 16.8%, and are achieving the highest percent of Home Report valuation, at 109.6%.

“The types of properties that have been selling the most in this reporting period have been two bedroom flats in Leith and one bedroom flats in Gorgie,” added ESPC.

“However one bedroom flats in Gorgie, along with Craigentinny, are continuing to be amongst the most affordable in Edinburgh.”

ESPC’s business analyst Maria Botha-Lopez says: “Properties in the New Town and West End are some of the most sought-after in Edinburgh, and over the last three months they have been snapped up quickly, going for considerably over the asking price.

“As Edinburgh’s city centre is becoming a hot spot for visitors to stay, there could be a correlation between the popularity for New Town properties available as holiday lets.

“As we come into the Christmas season we tend to see a slow-down in the market, which is reflective of the slight decrease in the number of homes being sold and the longer time to sell compared with the last couple of months.

“However, properties are still selling faster than the same time last year, from 25 days down to 20 days.

“For those looking to buy, Christmas could be a good time, as properties take than little bit longer to sell and there is less competition when it comes to putting in a bid for a home.”

The latest figures show:

• The average selling price in east central Scotland between September and November 2017 increased 7.5% year-on-year to £234,151 — with the average selling price in Edinburgh up 9.8% to £253,874
• The number of homes sold over the last three months decreased by 0.9% annually
• The number of new homes brought to market between the months of September and November increased by 1.9% annually
• The median selling time in east central Scotland is 17.1% faster when compared to the same three-month period a year ago – down from 25 days to 20. For properties across Edinburgh, the median time to sell was 19 days
• Properties sold between September and November 2017 marketed as “offers over” achieved an average of 9.3% over the asking price, up from 7% last year