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News Release

Singapore

Five-year high for total value sold at auction in 2015: 88 per cent of residential properties sold were mortgagee sales


Singapore, 21 December 2015 The auction market in 4Q15 was quiet in the lead up to the holiday season, with the value of auction sales declining on the previous quarter. The number of sales closed followed a similar pattern. The quarter saw the domination of residential properties as a proportion of properties sold, the majority of which were mortgagee listings.

In 4Q15, the Singapore auction market registered a total of $10.83 million in sales closed. This is a 76 per cent decline in quarterly sales value compared with the preceding quarter's $45.65 million. The number of properties successfully hammered likewise saw a quarterly decline of 67 per cent from 12 properties sold in 3Q15 to four properties sold in 4Q15. This was due to the lack of big-ticket sales, which accounted for over half of auction sales in 3Q15, alongside a drop in the number of residential properties sold and the absence of commercial sales altogether in 4Q15. In 4Q15, residential properties accounted for over 95 per cent of total sales value. Two of the three residential properties sold in 4Q15 were mortgagee listings.

On an annual basis, the total number of properties successfully auctioned in 2015 remained similar to the preceding year at 34 properties. However, the corresponding total sales value climbed by an impressive 41 per cent from $72.50 million in 2014 to the current year's $102.27 million. The rise in total sales value is primarily a result of big-ticket items sold earlier in the year, particularly in the residential and commercial sectors. The total sales quantum of $102.27 million seen in 2015 was the highest in five years.

The largest auction deals in 2015 were the sale of five adjoining shophouses on Teck Chye Terrace in January and the sale of a single-storey bungalow with redevelopment potential at 25 Branksome Road in September. The two sales contributed $14.63 million and $16.30 million to the commercial and residential sectors respectively.

On the sector front, residential once again took the lead in successfully hammered properties, accounting for 68 per cent of total sales value in 2015. This is due to the large share of sales listings coming from the residential sector, hitting 70 per cent in 1Q15 and 4Q15, with an annual percentage of 65 per cent. With the exception of 2013, the number of residential properties put up for auction since 2009 has consistently surpassed the combined number of industrial and commercial properties; in 2013, residential properties accounted for a low of 46 per cent of all listings.

In terms of seller profile, of the 26 residential properties sold in 2015, 88 per cent of these were mortgagee listings. This is a similar percentage to 2014, when 16 of the 20 residential properties sold, or 80 per cent, were mortgagee listings. The past two years have marked a significant growth in the percentage of mortgagee properties as a portion of residential auction sales, a departure from 2010 to 2013, which saw mortgagee listings making up less than 50 per cent of total residential sales.           

Ms Mok Sze Sze, Head of Auction and Sales at JLL, noted: "In the environment of impending further increase in interest rates and softening of rental market, we are likely to see more mortgagee sales put up in 2016. The majority of these are likely to comprise residential properties." 

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