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News Release

Singapore

Property auctions rebounded in 3Q 2015: All properties sold at first auction


Singapore, 29 September 2015Quarter to date, the auction market has rebounded with a pickup in overall sales value on the previous quarter. The number of sales closed followed a similar pattern. This was on the back of residential mortgagee sales commanding better prices than in the previous quarter, and the re-entry of commercial properties following their absence in 2Q.

The overall auction sales value achieved to-date in 3Q15 is $27.63 million, more than double the $9.99 million seen in 2Q15, and 13 per cent below the $31.65 million achieved a year ago. In terms of volume, despite its preliminary status, 3Q15 saw 10 sales closed, up from only five in the previous quarter, and on par with the 10 deals achieved in 3Q14.

On the sector front, residential properties form 70 per cent of the 10 sales seen so far this quarter, down from the previous quarter in which all properties sold were from the residential sector. Residential sales reached $13.62 million in 3Q15, a whopping 99 per cent increase from $6.83 million in the previous quarter. Amongst these deals was the sale of a 4-bedroom apartment at The Imperial on 5 Jalan Rumbia by JLL. The property was sold in July at $3.44 million, an impressive 11 per cent above the opening price of $3.10 million.

In terms of seller's profile, of the residential properties sold to-date in the current quarter, 100 per cent of the seven sales were mortgagee listings. This is a similar number to the five residential properties sold in 2Q15, over 80 per cent of which were mortgagee listings. However, when the auction sales are considered across all sectors, mortgagee listings as a percentage of total sales so far this quarter falls to 49 per cent, in line with the quarterly average of approximately 50 per cent seen since 2Q14.  

Propping up the overall auction sales value are two commercial properties, commanding $12.8 million in 3Q15. These include a refurbished two-storey shophouse at 362 & 362A Tanjong Katong Road sold at $6.35 million, and two adjoining shop units at 1 & 1B Figaro Street sold for $6.45 million. This is a leap in value after no sales seen in the second quarter, and more than double the value sold in 3Q14, contributing to the overall auction sales this quarter.

Notably, all of the 10 properties sold so far this quarter are new listings, successfully hammered on their first appearance. This was the case with only half of the properties sold in the previous quarter, with many sold only after multiple relisting. On this front, Ms Mok Sze Sze, Head of Auction and Sales at JLL, noted: "Overall, the attendance at auctions has been encouraging, with most experiencing a full house. All of the 10 sales that JLL has seen in the last quarter have been successfully sold at first appearance, which is indeed a positive result."  

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