After a lacklustre beginning in Q1 2011, the Singapore real estate auction market experienced a stronger second quarter, according to Colliers International.
The total value of properties sold increased by 49 percent quarter-on-quarter to S$41.38 million in second quarter this year.
The increase in total sales value recorded in Q2 was due to a number of high-value non-residential transactions, instead of residential sales, which normally comprise the biggest proportion of auction sales.
“The second quarter presented an atypical phenomenon, in which the auction property market witnessed an absence of high-value residential transactions, as well as a general drop in the value of residential sales,” said Grace Ng, Deputy Managing Director of Colliers International.
“Instead, there was a major shift in buyers’ focus to commercial and industrial properties.”
Ng added that this could be the result of the growing price sensitivity among buyers and their “wait-and-see” attitude, in the midst of more rigid cooling measures in the residential sector.
The total sales value in 1H2011 dropped to S$69.25 million, from the sale of 33 properties. This represents a 49 percent decline from the S$136.91 million in 2H2010 and a 20 percent drop from S$86.99 million in 1H2010.
In Q2 2011, 162 properties were released for auction, of which nine were mortgagee sales while 153 were put up by owners.
Looking forward, Colliers International predicts the number of properties released for sale via auction to remain at a strong level, with owners’ sales continuing to lead and mortgagee sales remaining low.
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