SG Singapore auction market has strong start
Property Here - Monday, April 01, 2013
Singapore's property auction market began the year on a high note despite the recent cooling measures introduced in the residential sector.
According to Colliers International, the auction market recorded a total sales value of S$76.08 million in Q1 2013, up 21.8 percent compared to last year's total of S$62.44 million. The much improved performance was mainly due to the sale of four high-value properties that generated S$70.1 million.
“The renewed interest seen in the auction market could be attributed to the continued government curbs in the residential sector, which has diverted buying interest to the non-residential sectors,” noted Grace Ng, Deputy Managing Director at Colliers.
Shophouses received the most interest as they are not affected by the property curbs and offer higher yields.
Meanwhile, a Jones Lang LaSalle (JLL) report revealed that non-residential assets dominated the auction scene in Q1, contributing S$56.84 million or 96 percent of the total sales value.
The industrial sector accounted for S$27.88 million or 47.3 percent of transactions despite recent regulations, while the retail and residential segments took 37 percent and 3.6 percent respectively.
“We are seeing an increasing proportion of enquiries for industrial properties coming from occupiers looking to own their premises. Given the huge capital investment required to fit-out the premises, and ever-increasing rents, these occupiers prefer to own rather than lease to ensure greater business stability. Despite the implementation of the SSD on industrial properties, the resilience of demand in this sector has been supported by a fundamental need for space from industrialists. Interest in the auction market for non-residential properties is anticipated to increase in the short term given this limited new supply in the market,” said Mok Sze Sze, Head of Auctions at JLL.
JLL took the lead capturing around 56 percent of the auction market share, with the largest deal amounting to $25.6 million.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email email@example.com