The number of properties put up for auction jumped to 224 in the first half of 2013 from a record low of 140 properties in 2H2012, with year-on-year growth at 24 percent. This came as a higher proportion of non-residential properties entered the market, revealed a Knight Frank report.
Around 92 percent of the properties up for auction in 1H2013 remained as owner sale.
In the residential segment, the number of properties auctioned was subdued at just 100 units. However, the proportion of landed properties on auction climbed 16 percent from 2H2012.
Industrial properties accounted for 25 percent of total auctions, up 11 percent from the second half of 2012. Despite the increase, only four properties were sold at a total value of S$28.4 million.
The number of strata shops put up for auction soared 60 percent from 2H2012 to 58 shops and shophouses. But the disparity of price expectations between sellers and buyers resulted in lacklustre sales with only four units sold.
Meanwhile, HDB shops remained the most sought-after property type, with nine units put on auction. “Whilst only one unit was sold via auction, some of these HDB shops located in Sims Place and Bukit Batok were sold under private treaties in 1H2013,” Knight Frank said.
Total auction value rose by more than six-fold to S$91.1 million, despite a decline in the success rate from 7.1 percent in 2H2012 to 6.3 percent in 1H2013.
Moving forward, Knight Frank expects the overall property market to slow down in the current half, while “sale enquiries and auction activities could potentially increase for 2H2013 as sellers become more motivated to sell given the exposure that auctions can offer”.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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