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SG Property auction sales values fell in 2013

Property Here - Thursday, December 19, 2013

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The Singapore property auction market sold 19 properties out of 488 properties put up by all auction houses in 2013. This is a decline of 20.8 percent from last year's 24 properties sold, according to a report by Colliers International.

Despite the decline in volume, total sale value chalked up in 2013 exceeding that in 2012 by around 46.7 percent to S$91.63 million from S$62.44 million.

The report noted that the higher total sale value was primarily driven by the sale of four high-value properties auctioned in Q1 2013, which accounted for a 76.5 percent of the overall sale value in 2013 or S$70.1 million.

“The year saw property auction activity fizzling out after the first quarter – with sale value declining from S$76.08 million in Q1 2013 to only S$3.9 million in Q4 2013,” it said.

Meanwhile, the bulk of the total auction sales was accounted for by the industrial and residential sectors, at 37.1 percent and 34.3 percent, respectively.

“The slightly higher total sale value garnered by the industrial sector this year was mainly due to the sale of a JTC factory at Benoi Road, which was sold for S$25.6 million,” said Grace Ng, Deputy Managing Director of Colliers International.

Retail properties remained popular among buyers, contributing 28.6 percent to the total sale value or S$26.2 million.

Going forward, “the total sale value for the Singapore auction market in 2014 is likely to come in at approximately S$70 million – on the back of a tumultuous global stock market amid possible QE tapering, the after-effects of the local government property measures, the continued stalemate between buyers and sellers, and the expected low number of high-value sales,” said Ng.