High class properties are fetching high prices

FPDSavills also said similar properties there are selling for more than �600,000 for the first time.

The findings follow research by the Clydesdale Bank which indicated that recent interest rate rises are unlikely to cool the housing market.

The bank's housebuyers survey found no decline in the proportion of people intending to buy a house this year.

The report from FPDSavills has confirmed the strength of the top end of the market.

In their sample, the average premium over the asking price required to secure a property in Edinburgh was �166,000.

These prices might appear extraordinary but in comparison to the English capital, Edinburgh is still relatively cheap FPDSavills

The property agents say they have frequently achieved prices in excess of �1m in the more popular parts of the city.

But Edinburgh is said to remain more affordable than other major cities.

Peter Lyell of FPDSavills said: "These prices might appear extraordinary but in comparison to the English capital, Edinburgh is still relatively cheap."

The average cost per square foot of these top properties in Edinburgh is now �232, compared with �500 in London and in excess of �400 in Paris.

Savills see no sign of collapse in property prices.

Strong markets

According to Peter Lyell: "We have witnessed robust growth during 2003 and anticipate that 2004 will bring stable and steady growth in the prime property market."

The Clydesdale Bank's research appears to confirm the strength of the wider market.

Among first-time buyers, 44% do not believe that prices are calming.

They are also the most enthusiastic bidders, prepared to offer up to 25% above the "offers over" price.

Only 4% of Scottish homeowners believe the value of their property will decrease through 2004.