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SG Wait and see approach pushes down auction market

Property Here - Thursday, July 04, 2013

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Singapore's property auction market softened in Q2 2013 with only four properties sold at a total of S$5.045 million. However, interest levels grew as the number of properties that went on auction rose four percent from the previous quarter, according to a Jones Lang LaSalle report.

“Property owners still see auctions as a good avenue for sale and the number of properties listed has increased from 109 units in Q1 2013 to 113 in Q2 2013,” the report noted.

Two residential properties in districts 11 and 15 were sold last quarter and accounted for S$4.05 million or 80 percent of overall transaction value. These were a two-storey intermediate terrace at Woo Mon Chew Road and a ground floor unit at Novena Court.

Meanwhile, commercial property auctions slowed down with only 34 properties put under the hammer, compared with 40 in Q1. Total transaction value in the sector also fell 29 percent from Q1, although the value of properties listed for auction surpassed the three-year quarterly average by 170 percent.

“Buyers have adopted a wait-and-see approach during the most recent auctions. Bargain hunters are watching but are not yet ready to commit until the market shows greater clarity. While this has affected the success rate of properties at auction, it is by no means a reflection of the quality of the assets listed. In fact, sellers are still confident of the market and, as a firm, we have recently received a listing for a rare two-storey freehold titled terrace house in the Orchard area for our next auction,” said Mok Sze Sze, Head of Auctions at Jones Lang LaSalle.



Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg