Auction market heats up with more properties sold

29 Mar 2018
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Auction market heats up with more properties sold

Sales in Q1 2018 increased by 31.2 per cent

SINGAPORE, 29 March 2018 – While the number of new properties put up for sale has remained unchanged year-on-year (y-o-y) at 63 units in Q1 2018, the number of properties sold rose to 11 units in Q1 2018 from eight in Q1 2017. The total value of properties sold via auction was $19.97m, 31.2 per cent higher from $15.23m in Q1 2017 and $9.62m in Q1 2016. The increased activity in the auction market reflects the positive sentiments and strong demand in the market.

The units sold via auction in Q1 2018 are as follows. Private treaty sales and units transacted before or after the auction are not included in the list. 

Property

Auctioned amount

Property type

Seller profile

The Berth by the Cove, #06-18
214 Cove Drive (D04)

$3,250,000

Residential

Mortgagee

Harbour View Towers, #22-02
21 Telok Blangah Dr (D04)

$1,080,000

Residential

Mortgagee

Spring Grove, #03-02
53A Grange Road (D10)

$2,500,000

Residential

Mortgagee

The Ebony, #02-05
35 Lorong Merican (D14)

$510,000

Residential

Mortgagee

The Sensoria, #02-01
1 Jalan Ulu Sembawang (D27)

$1,050,000

Residential

Mortgagee

Orchid Park Condominium, #03-06

95 Yishun Street 81 (D27)

$620,000

Residential

Mortgagee

International Plaza, #26-11
10 Anson Road (D02)

$1,710,000

Commercial

Mortgagee

683 Hougang Avenue 8, #01-919 (D19)

$2,700,000

Commercial

Mortgagee

Leighwoods, #04-01
37 Mount Sinai Rise (D10)

$2,900,000

Residential

Owner

The Summit, #04-07
461 Upper East Coast Road (D16)

$1,420,000

Residential

Owner

17 Jalan Batai (D20)

$2,230,000

Residential

Public Trustee

 

In line with previous trends, mortgagee sales were still the most popular among bidders, with eight units sold, totaling $13.42m. Owner’s sale and a public trustee’s sale at 17 Jalan Batai contributed $4.32m and $2.23m, respectively.

Eight non-landed residential units and one landed unit totaling $15.56m were sold. It is interesting to note that the transactions were distributed evenly between core and non-core regions, whereas in the past, it was more likely for the non-core regions to achieve a higher number of sales due to their affordability. Only two commercial units with a sales value of $4.41m were sold during this period.

Head of Auction & Sales Joy Tan commented, “In the last six months, we noticed that older developments completed before the year 2000 are attracting more interest, with some investors looking to ride the en bloc wave. During the marketing period of the units, we often receive queries about the en bloc potential of the development.”

As seen in the following table, six out of the 11 units sold this quarter were completed before the year 2000. This might suggest that investors are still on the lookout for such properties.

Property

Property type

Year of completion

Tenure

International Plaza, #26-11
10 Anson Road (D02)

Mixed development

1976

99 years wef 1970

Harbour View Towers, #22-02
21 Telok Blangah Dr (D04)

Residential

1994

99 years wef 1990

Spring Grove, #03-02
53A Grange Road (D10)

Residential

1996

99 years wef 1991

Leighwoods, #04-01
37 Mount Sinai Rise (D10)

Residential

1985

Freehold

The Summit, #04-07
461 Upper East Coast Road (D16)

Residential

1991

Freehold

Orchid Park Condominium, #03-06

95 Yishun Street 81 (D27)

Residential

1994

99 years wef 1991

 

“It is positive to see a strong start to the auction market in 2018, with an upward trend seen over the last two years. This may be due to pent-up demand from buyers, who have been waiting on the sidelines for news on changes to stamp duty. However, Parliament surprised the market this quarter by announcing the increase in the Buyer’s Stamp Duty (BSD) on 19 February. Instead of being deterred, it appears both local and foreign buyers are returning to seek out good deals from the auction market.

“We expect a steady increase in sales throughout this year, especially as owners who are cashing out on their successful en bloc sales begin to search for replacement units for occupation or investment,” added Joy.

 

ENDS

 

 

For further information contact:

Joy Tan
Senior Director
Head of Auction & Sales
DID: +65 6393 2505
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.

Media please contact:

Vanessa Lim
Manager
Corporate Communications
DID: +65 6393 2369
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

About Edmund Tie & Company

Edmund Tie & Company (ET&Co) is a full-service, real estate consulting firm with more than 500 skilled professionals in the region. It is headquartered in Singapore and supported by offices in Kuala Lumpur, Malaysia, and Bangkok, Thailand. ET&Co offers a comprehensive suite of agency and professional services including investment advisory, commercial and retail, residential agency, auction and sales, valuation advisory, statutory valuation and property tax advisory, research and consulting, property management, and hospitality management. For more information, please visit www.etcsea.com

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