Increased number of owners are selling their properties through Auction

SINGAPORE – Rounding up 2018, the total number of properties successfully sold in auctions fell by 23 per cent from 44 properties in 2017 to 34 properties in 2018. Similarly, total value of successful auction sales fell more than 53 per cent from SGD 101.50 million in 2017 to SGD 54.12 million in 2018. The total sales quantum of SGD 54.12 million in 2018 is 7-year low since 2012.

Figure 1: Total Sales Value During Auctions from 2012 to 2018

Residential properties remained the bulk of deals, which stood at 83.6 per cent of the SGD 45.27 million of total sales.

The largest sales hammered in 2018 includes a 3½-storey semi-detached house at 25 Pasir Ris Way in May which was sold at SGD 5 million, as well as a duplex penthouse located at 214A Ocean Drive, The Berth By The Cove and a 3½-storey strata-titled semi-detached located at 11 Holland Link, Eleven @ Holland. Both were sold at SGD 3.25 million each in February and September respectively. 

A notable trend observed over the years, was the increase in number of mortgagee properties reflected in the sales listings since 2013 after the introduction of TDSR (Total Debt Servicing Ratio). Owner’s sales however saw a significant jump in number from the past year with 507 properties in 2017 to 737 properties in 2018 which equals 45 per cent increase.

This year also saw the sales quantum for private residential mortgagee properties totaling to SGD 24.93 million, which is record low since 2014 (five year low). Average value sold ranged from $510k to $5 million.

Ms Mok Sze Sze, Head of Auction and Sales at JLL, noted: “The looming trade war and introduction of new cooling measures have caused buyers to stay on the sideline especially in the second half of this year. This has impacted the residential property market significantly more than other sectors. We foresee more repossessed properties to come into the market next year. The increase could range between 5 to 10 per cent year-on-year. More owners are also likely to continue to sell their properties through auctions as they learn more about the advantages of an auction sale.”

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