The total sales value at auctions nearly halved year-on-year from $101.5 to $54.12 million.
The overall value of properties that were successfully sold via auction nearly halved from $101.5 million in 2017, ending the year at $54.12 million, the lowest since 2012, according to a new report from JLL.
“The looming trade war and introduction of new cooling measures have caused buyers to stay on the sidelines, especially in the second half of this year. This has impacted the residential property market significantly more than other sectors,” said JLL’s head of auction and sales, Mok Sze Sze.
“We foresee more repossessed properties to come into the market next year. The increase could range between 5.0 to 10 percent year-on-year.”
Source: JLL Research
As for the number, a total of 34 properties were auctioned off in 2018 compared to 44 during the previous year.
Residential properties accounted for 83.6 percent or $45.27 million of successful auction sales. The biggest transaction was the $5 million sale of a 3½-storey semi-detached home at 25 Pasir Ris Way in May. A duplex penthouse at The Berth By The Cove in 214A Ocean Drive and a 3½-storey strata-titled semi-detached home in Eleven @ Holland along 11 Holland Link were also transacted for $3.25 million each in February and September respectively.
As for mortgagee sales involving private houses, the amount reached $24.93 million, the lowest since 2014. The units were sold at prices ranging from $510,000 to $5 million.
More: 7 Questions About Property Auctions
Meanwhile, data from Knight Frank revealed that the overall value of homes sold via auction fell 41.7 percent on an annual basis to $46.4 million in 2018.
“The average price quantum of residential properties also declined, as buyers became more price sensitive and cautious post the July cooling measures,” noted the property consultancy.
“We expect to see more owner sale listings, as owners are exploring auctions as an alternative mode to private treaties. Separately, there will be more mortgagee sales in 2019, as buyers become more discerning and cautious,” added Sharon Lee, senior director and head of auction at Knight Frank Singapore.
What are property auctions? For more information, read our buying guide.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
