Skip Ribbon Commands
Skip to main content

News Release

Singapore

Property auction market rebounded in 3Q 2014: highly sought-after auction properties snapped up upon first appearance

Residential sales regain traction to become the main driver of successfully hammered auction sales        


SINGAPORE, 25 September 2014 – The auction market rebounded on the back of stronger residential sales in 3Q14, despite the overall weak investment sentiment in the Singapore property market. Compared with nine auction sales successfully hammered in 2Q14 for a total of SGD 9.28 million, the auction market witnessed nine properties changing hands at SGD 30.46 million in 3Q14 to date, denoting a significant leap in sales value. Five of the nine sales in 3Q14 were residential properties, accounting for almost two thirds of the sales value. The resurgence in auction sales is partially attributable to the exponential growth in mortgagee sales that offer quality assets at attractive pricing. 

Notably, out of the 44 properties sold during auctions in 2013 and 2014, vast majority or 80 per cent of these assets were successfully hammered upon their first appearance while the remaining 20 per cent were sold when the properties were relisted.

For instance, the largest two auction deals in 2014 involved the transaction of four strata office units in Orchard Shopping Centre at SGD 8.55 million in March and the freehold residential development site off Brighton Crescent at SGD 9.1 million in September. The former sale attracted more than ten bids and garnered a 22 per cent premium over its opening price of SGD 7 million while the latter received seven bids and concluded at a price 18 per cent higher than the opening price of SGD 7.7 million.

Also noteworthy is the sale of a condominium unit in Draycott 8, a prestigious high-end residential project within a stone's throw away from the prime shopping belt of Orchard Road. The property was sold at SGD 5 million when first put up for auction in March 2014. Other properties sold when first listed in 3Q14 include an apartment unit in Orchard Scotts and a unit in Ocean Park. Evidenced by the spontaneous bids and immediate sale of the successfully hammered auction properties, buyers are seeking for quality buys and tend to be more decisive when price expectations are matched. 

On the sellers' profile front, we have noticed a spike in number of mortgagee sales. Based on the JLL basket of auction sales, the cumulative count of properties put up for auction illustrated a sudden surge from 30 mortgagee sales (6 per cent of all listings in 2013) to 104 in the first eight months of 2014 (more than 25 per cent of all listings). This represents the highest number of mortgagee sales listed in five years since 2010.  

 "As the auction market is expected to register an ongoing stream of mortgagee sales supply, we are anticipating further improvement in auction sales quantum for the coming quarter. However, the year-end holiday season is predicted to moderately soften the investment activity in December. Also, given the landmark quarter of auction transactions in 1Q13, which witnessed total sales of SGD 83.5 million, it is unlikely that total auction sales in 2014 will surpass that of 2013. Nevertheless, the foreseeable increase in mortgagee sales will continue to support the auction market," said Mok Sze Sze, Head of Auction and Sales, JLL. 

2014 09 25 Auctions Press Release figure 1.jpg

2014 09 25 Auctions Press Release figure 2.png