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Non-Residential properties continue to dominate the Auctions market
SINGAPORE, 28 September 2012 – The third quarter of 2012 saw total value from residential auctions outperforming; contributing 75% of all successful transactions done. $12.4 million out of $16.7 million auction sales in the third quarter came from the residential market. This is a stark improvement from the previous two quarters where residential deals took up only 17% and 24% respectively. The strong market fundamentals – low interest rate and strong population growth, has led to more interest in this sector.
Year to date, a total of 19 properties have been transacted through auctions, amounting to a total of $51 million, albeit lower than the 40 deals (totally $82 million) concluded in the same period last year. Notwithstanding, the improvement in the value of residential sales, the non-residential sector remained dominant, concluding 11 deals at a total of $31.4 million. This shows that 62% of the total $51 million in value sold under auction came from the commercial, industrial and other non-residential property sectors. Since 2011, the proportion of non-residential deals to total deals concluded has been on the rise; primarily due to the punitive residential policies in place. (Figure 1)
Jones Lang LaSalle’s auction team maintains Number 1 ranking overall for 2012. The team secured a record $26 million in the non-residential sector during the first nine months of 2012, taking up a whopping 84% market share. Interestingly Jones Lang LaSalle successfully secured a tenancy auction, for 369 Tanjong Katong Road. This deal marks the growing acceptance of auction as an avenue to achieve equitable value be it sale or tenancy, for the property.
Mok Sze Sze, Head of Auctions at Jones Lang LaSalle said, “We can see that sellers view auctions as an effective tool in achieving fair value for their property, the recent tenancy auction shows further confidence in the market.” Although the success rate of close to 8% secured to date has clearly reflected the uncertain global market conditions looming over most of the year, it might not be as gloomy in the coming term. Ms Mok adds, “While we are likely to end the year a shade lower compared to 2011’s $95.6 million, we could see confidence in the market returning with the recent news of QE3.”
Source: Jones Lang LaSalle Figure 1
– ends –About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.2 billion of assets under management. Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 22,200 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was highly commended in a further three countries. For further information, please visit www.ap.joneslanglasalle.com200 East Randolph Drive Chicago Illinois 60601 │ 22 Hanover Square London W1A 2BN │ 9 Raffles Place #39–00 Republic Plaza Singapore 048619