By Graham Huband

THE BOOM in property prices in Dundee was put into sharp focus yesterday when it was revealed the average price of a villa in the city had breached the £200,000 mark for the first time.

The housing sector in Dundee and Tayside has risen sharply in recent years and has led to fears first-time buyers are being priced out of the market.

Tayside Solicitors Property Centre manager Helen Wylie said yesterday the first quarter of 2006 had seen buoyant trading in the local housing market, with more than 750 houses sold.

The average price of a home sold in Dundee, Angus and north-east Fife now comes in around the £116,000 mark—a leap of 15% year-on-year—while flats continue to generate strong demand, with the average price heading towards £80,000 after an 18% rise.

However, the headline figure to emerge from the quarter is the 11% rise that has seen the average price of a villa in Dundee soar to £201,272.

Villas accounted for almost a quarter of entire sales during the period that amounted to a total of £87.5 million.

Mrs Wylie said, “Villas have long been a popular sector of the market in Dundee and Broughty Ferry in particular, and this price movement simply underlines how attractive they are to would-be buyers.

“It’s the first time we have reported the average villa price for a quarter nudging past the £200,000 mark.

“A recent national bank survey suggested the Dundee market had experienced one of the more modest advances in property prices over the last decade.

“But this indicates that there is an element of playing catch-up in the market, without pricing homes out of the reach of potential purchasers keen to acquire a villa.

“The statistics also indicate that both traditional and modern properties are attracting interest.”