The number of properties put up for auction increased 35.7 percent quarter-on-quarter in Q1 2015 to 175 units, of which residential properties accounted for 70.3 percent, revealed a Knight Frank report.
The number of residential units put up for auction jumped 43 percent quarter-on-quarter to 123 units in the first quarter, crossing the 100-unit mark for the first time since Q4 2010 when 101 residential properties were placed under the hammer.
“Persistently weak sentiment stemming from the property cooling measures on the residential sector, coupled with the Total Debt Servicing Ratio (TDSR) and the softening of the leasing market contributed to the residential sector forming the bulk of total auction listings in Q1 2015,” said Sharon Lee, director & head of auctions at Knight Frank Singapore.
The report stated that the number of properties successfully auctioned soared 57.1 percent quarter-on-quarter to 11 properties in Q1. The residential sector led the other sectors, selling nine of the 54 mortgagee sale properties available for auction.
Meanwhile, the total auction sales value surged 161.2 percent from last year to $35.8 million in Q1 2015. Residential sales dominated the market with a total value of $20.4 million.
All residential properties sold at auctions in the three-month period were under mortgagee listings.
Looking ahead, Knight Frank expects more residential units to be placed on the auction block given that demand in the secondary market has been relatively weak in the past few quarters, which could result in more mortgage defaults.
As such, buyers are expected to take advantage of the lacklustre sentiment and actively participate in auctions, while sourcing for potential value-buys at these auctions. In fact, they will be spoilt for choice with the potential rise in properties offered for auction.
Among those listed on Knight Frank’s upcoming auction on 28 April are two-storey semi-detached homes at 28 One Tree Hill Road and 27 Jalan Arnap in district 10; and a four-plus-one bedroom apartment at #13-02 Leonie Gardens in District 9.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
