The residential market accounted for a healthy 75 percent, or S$12.4 million of the total S$16.7 million for auction sales in Q3 2012, according to Jones Lang LaSalle (JLL).
The improvement was mainly attributed to strong market fundamentals, including low interest rate and robust population growth, which pushed the residential market share up from 17 and 24 percent in the previous two quarters.
The 19 properties sold through auctions year-to-date account for S$51 million, but this is still lower than the 40 deals (S$82 million) seen over the same period last year.
“Notwithstanding, the improvement in the value of residential sales, the non-residential sector remained dominant, concluding 11 deals at a total of S$31.4 million. This shows that 62 percent of the total S$51 million in value sold under auction came from the commercial, industrial and other non-residential property sectors,” noted JLL
Meanwhile, the consultancy’s auction team has maintained its number one ranking overall for this year, securing a record S$26 million (or 84 percent market share) in the non-residential sector for the first nine months.
Mok Sze Sze (pictured), Head of Auctions at JLL, said: “We can see that sellers view auctions as an effective tool in achieving fair value for their property, the recent tenancy auction shows further confidence in the market.”
Even as the success rate of nearly eight percent secured to date reflects uncertain market conditions for much of 2012, the market might pick up in the near term.
“While we are likely to end the year a shade lower compared to 2011’s S$95.6 million, we could see confidence in the market returning with the recent news of QE3,” noted Mok.
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