Property sales at auctions fall in 2011Q1

Published 1 April 2011
The Business Times
By Uma Shankari

$27.9m worth of deals lowest sales value garnered since Q1 2009

THE Singapore property auction market registered a significant drop in total sales value and number of transactions in Q1 2011 – chalking up a total of 17 transactions worth only $27.9 million – according to new data from Colliers International.

Property sales at auctions fall in 2011Q1

Property sales at auctions fall in 2011Q1

This is the lowest sales value garnered since the auction market rebounded in Q1 2009 after the global financial crisis. In the fourth quarter of 2010, by contrast, there were $80.6 million worth of properties sold through auctions.

The drastic decline in sales value in Q1 2011 could be due dampened sentiment in the residential sector as a result of cooling measures introduced by the government, Colliers said.

‘The introduction of the cooling measures in January this year – deemed the stiffest the market has ever seen – has led to a 38 per cent year-on-year dip in auction sales value, while the lack of high-value transactions contributed to the steep 66 per cent quarter-on-quarter fall in sales value,’ said Grace Ng, deputy managing director of Colliers.

Of the 17 properties sold in Q1 2011, there were five residential properties worth a total of $11.1 million, five retail properties worth $7.6 million, six industrial properties worth $4.2 million and one development site worth $5 million.

Colliers noted that there is now a ‘stalemate’ in the private home sales market.

Sale of private residential properties at auctions was visibly thin in Q1. The figures paled in comparison to the 13 residential properties worth $23.1 million sold in Q1 2010 as well as the eight transactions worth $41.6 million sold in Q4 2010.

There is no lack of offers for private residential properties but the offers are often below sellers’ asking prices, Ms Ng said.

‘Sellers backed by strong holding power chose to remain firm in their stance even though the offered prices are only 5 to 8 per cent below the asking. A stalemate between buyers and sellers was observed and this was particularly so in the secondary market,’ she said.

There was also an absence of high-value property transactions. The most expensive transaction concluded at auction during the quarter was a piece of residential land at Joo Chiat, which was knocked down at $5 million.

Colliers noted that there is now a ‘stalemate’ in the private home sales market.

Sale of private residential properties at auctions was visibly thin in Q1. The figures paled in comparison to the 13 residential properties worth $23.1 million sold in Q1 2010 as well as the eight transactions worth $41.6 million sold in Q4 2010.

There is no lack of offers for private residential properties but the offers are often below sellers’ asking prices, Ms Ng said.

‘Sellers backed by strong holding power chose to remain firm in their stance even though the offered prices are only 5 to 8 per cent below the asking. A stalemate between buyers and sellers was observed and this was particularly so in the secondary market,’ she said.

There was also an absence of high-value property transactions. The most expensive transaction concluded at auction during the quarter was a piece of residential land at Joo Chiat, which was knocked down at $5 million.

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