Nine properties were sold at a total of $30.46 million in Q3 2014 so far, according to JLL.
This marks a significant leap in sales value, compared to the total of $9.28 million recorded in Q2 2014 for the same number of properties.
Residential sales was the main driver of successfully hammered auction sales. Five of the nine sales from June to September 2014 were residential properties, making up about two thirds of the sales value.
Out of the 44 properties sold during auctions in 2013 and 2014, 80 per cent of these assets were successfully sold upon their first appearance while the remaining 20 percent were sold after they were relisted.
For example, the sale of a condominium unit in Draycott 8 was sold at $5 million when first put up for auction in March 2014. Other properties sold when first listed in this quarter include an apartment unit in Orchard Scotts and a unit in Ocean Park.
JLL also highlighted a spike in number of mortgagee sales. The first eight months of 2014 saw a cumulative count of 104 mortgagee sales, making up a quarter of all listings, and marking the highest number of mortgagee sales listed in five years since 2010.
“As the auction market is expected to register an ongoing stream of mortgagee sales supply, we are anticipating further improvement in auction sales quantum for the coming quarter. However, the year-end holiday season is predicted to moderately soften the investment activity in December,” said Mok Sze Sze, Head of Auction and Sales, JLL.
Additionally, the total auction sales in 2014 is unlikely to surpass that of 2013, as auction transactions in Q1 2013 alone saw total sales of $83.5 million.
“Nevertheless, the foreseeable increase in mortgagee sales will continue to support the auction market,” said Mok.
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
