Graham Tonner, partner at Graham and Sibbald, told the Tele all areas of the property market in Tayside are performing well and, in many cases, attracting sales well in excess of valuation.

The continuing rise in prices locally provides good news for established homeowners, but has led to fears that first-time buyers are being priced out of the market.

“The traditional winter slow-down appears to be a thing of the past, as the residential property market, after a short festive break, seems to be forging ahead,” said Mr Tonner. “Local estate agents confirm there is an early upturn of activity, suggesting, as more properties are introduced to the market, prices will continue to rise.”

With house-builders showing confidence in the Dundee area, demand for land has increased dramatically, and both the city centre and outskirts have changed beyond recognition, with estates continuing to be built throughout.

High-value developments at Liff and Auchterhouse are being built, while further expansion is in the pipeline at the emerging Western Gateway, which stretches from the Swallow Hotel to Liff village.

The estates of Craigowl and Emmock Woods continue to grow, but perhaps the biggest changes are to the east of the city where Broughty Ferry, Monifieth and Carnoustie have benefited from the new Dundee-Arbroath dual carriageway, which has allowed more land for housing.

The spectacular leap in Dundee house prices in recent times has restored the popularity of tenement flats with first-time buyers.

Mr Tonner said, “In the past, selling a property of this type was a difficult task, whereas now there is a high demand, from first-time buyers and investors alike.”

Mr Tonner said, how long the growth continues in Tayside depends on factors such as the economy and interest rates.

However, he added, “The city however has reinvented itself over the last 10 years and, with the ongoing redevelopment of the city centre and waterfront, the future looks bright for the local residential property market.”