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Singapore

Jones Lang LaSalle Auction deals dominate in 2012

Commercial and industrial auction deals register highest success rate


​ SINGAPORE, 12 December 2012 –The year 2012 to date has clocked a total value of $57.9 million with an average of $15 million auction deals secured each quarter. Among the sectors, the residential market dominates with $25.5 million (44%) in auction deals concluded. This is an improvement from the year before, in which commercial auction deals took pole position, securing 50% of total value while the residential sector came in second at 32%.
Following its strong presence in 2011, the commercial sector has maintained the lead, concluding $22.9 million, or 40% of auction sales in 2012 to date. The main contributor to the commercial market’s success is the sale of a petrol station at Jalan Ahmad Ibrahim for $12.7 million in the early part of 2012. It is the single largest auction deal for 2012, secured by Jones Lang LaSalle auction team.
Apart from taking the lion’s share of auction sales this year, the commercial sector is ranked among the top sectors with the highest success rate of auction sales. As seen in Figure 1, 7.2% of total commercial sales made available in the auctions market was successfully secured. 7 commercial deals were concluded out of the 97 available. The industrial sector also fared relatively well achieving a success rate of 7.4%, concluding 4 out of a total of 54 industrial properties put out for sale. The success rate of these two sectors is more than the rate registered by the residential market (7.1%), which seems to portray greater resistance from buyers. This resistance could be the result of a generally cautious residential market, in light of the numerous cooling measures announced this year.  Ms Mok Sze Sze, head of auctions at Jones Lang LaSalle said “Sentiments in commercial properties have been improving, especially in the strata sales segment. We are likely to see continued interest in the near term”.
The strong success rate seen in the industrial sector is rather surprising as it coincides with a period where the industrial market is being closely monitored by the government. In the middle of 2012, the government released measures pertaining to tenure and size restrictions for industrial sites. Despite the measures, industrial auction sales managed to emerge the sector with the highest success rate.
As seen in Chart 1, the Jones Lang LaSalle auctions team has captured 52% of 2012’s tally of $57.9 million, retaining its position as market leader throughout the year.

Chart 1: Auction sales performance for 2012

Source: Jones Lang LaSalle           
*Success rate is calculated based on number of properties put up for sale against number of properties sold
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About Jones Lang LaSalle
Jones 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.com

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