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News Release

Singapore

2Q16 Auction sales increased more than 100 per cent from the previous quarter

Total sales value of auctioned units on the rise, with larger quantum units sold


Singapore, 28 June 2016 – Following the dip in auction sales in 1Q16, 2Q16 has shown promising results, with a total sales value of SGD 13.764 million being successfully hammered thus far.

While there are still auctions to be held in the final week of June 2016, the total sales value to date has already surpassed the SGD 5.875 million in 1Q16 mere by an impressive 134.3 per cent. This also marks an increase of 102.4 per cent y-o-y from 2Q15, where sales value was SGD 6.8 million.

The units sold via auction thus far in 2Q16 are as follows:

​2Q16 Auction Results ​ ​
 UnitProperty TypeAuctioned AmountSeller Profile
1Silversea #19-19Residential$3,900,000Mortgagee
2Entrepreneur Business Centre #04-07/08Industrial$1,576,000Mortgagee
3Turquoise #03-07Residential$2,920,000Mortgagee
4One Amber #23-18Residential$3,700,000Mortgagee
5Rio Casa #02-613Residential$730,000Owner
6Pine Grove #02-57Residential$938,000Owner

Residential units once again dominated the auction floor, with only one non-residential property sold via auction last quarter.
As the below table shows, 1Q16 saw an unusual trend of industrial / commercial units overtaking residential ones, with only
one out of six deals done being a residential unit in Serenade @ Holland.

​1Q16 Auction ​Results ​ ​
 UnitProperty TypeAuctioned AmountSeller Profile
1#03-10 Sultan Plaza, 100 Jalan SultanCommercial$475,000Mortgagee
2#02-19 Parklane Shopping MallCommercial$450,000Mortgagee
3#17-04 Serenade @ HollandResidential$1,700,000Mortgagee
4#07-11 Yi Xiu Factory BuildingIndustrial$780,000Mortgagee
5#01-249, 710 Clementi West Street 2Commercial$1,650,000Mortgagee
6#03-02, 38 Woodlands Industrial Park E1Industrial$820,000Mortgagee

This sharp increase in residential units sold could be due to Parliament reinforcing during Budget 2016 on 24 March 2016 that it would still be too soon for Singapore's cooling measures to be lifted, thus re-igniting buyers' appetite for residential properties.

This quarter's sales was also plumped up by three fairly big ticket transactions at Silversea, One Amber and Turquoise, which sold for SGD 3.9 million, SGD 3.7 million and SGD 2.92 million respectively. 1Q16 lacked transactions above the SGD 2 million mark, resulting in the weak total sales value, though number of units sold was the same as that of 2Q16.

All three of the above-mentioned units were being offered for sale for the first time and were sold within weeks of entering the market. Another unit which appeared for the first time was The Medallion, a strata-titled bungalow off Braddell Road, which was sold via private treaty a day after being put up at JLL's May auction (not yet caveated).

We observe that buyers are still on the lookout for a good deal in the residential sector and are ready to take action when the opportunity presents itself, although the price is above the "usual" sweet spot of SGD 1 to 1.5 million. These buyers also managed to snag a price way below what the previous owners had paid.

UnitAuctioned PriceLast Caveated Price by Previous OwnerDifference
Silversea #19-19$3,900,000 $4,782,000
8-Feb-12
-$882,000
Turquoise #03-07$2,920,000 $5,457,000
29-Oct-07
-$2,537,000
One Amber #23-18$3,700,000

$4,427,835

17-Jan-11

-$727,835


Mortgagee sales made up 66.7 per cent of the units sold in 2Q16, but just about 43 per cent (59 out of 139 listings) of listings being put up for auction this quarter. Contrary to the stigma that is often associated with auction (i.e.  putting up a property for auction means one is in financial difficulties), owners are now more open to putting their properties under the hammer. There has been a regeneration of interest in this method of sales – in the last two years, mortgagee sales amounted to over 65 per cent of total transaction numbers.

Ms Mok Sze Sze, Head of Auctions at JLL, commented: "Sale of residential properties once again led the auction scene in 2Q16, following a surprisingly muted response last quarter. In the second half of the year, we expect to see more mortgagee sales coming on stream, including non-residential properties, as businesses feel the pressure of an uncertain global economic outlook."

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