The number of properties put up for auction has increased, but sales have dropped.
The total number of Singapore properties placed on the auction block, including re-listings, jumped 21.7 percent year-on-year to 454 or the highest since the second half of 2009, according to a Colliers International report.
Of this, there were 234 residential properties, up 15.8 percent from the 202 houses listed for auction during the corresponding period a year ago.
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Specifically, residential mortgagee listings or the number of foreclosed homes placed under the hammer by banks rose 11 percent to 121 units on an annual basis.
In comparison, owners’ listings or the number of all properties (residential, industrial and retail) listed for auction by their owners surged 37.3 percent to 254 on a yearly basis.
“More owners have taken to listing via auctions to maximise exposure (and get the best price), while mortgagee listings grew at a slower pace given the improved economy,” said Colliers’ assistant research manager Nathan Nguyen.
Of the 454 properties listed for auction, 21 were successfully sold in H1 2018. Although this is slightly higher than the 20 auctioned off in the same period a year ago, this is 25 percent lower than the 28 sold in the second half of 2017, as there were fewer residential and retail properties transacted.
Of the 21, 11 were mortgagee sales, of which eight comprised residential properties – the same number of residential mortgagee sales in H1 2017.
Overall, auction sales involving all types of properties fell to $35.3 million from the $46.2 million recorded in the same period a year ago due to lower prices per unit.
“Total sales value fell 23.6 percent as mortgagee sales value edged down marginally by 5.3 percent year-on-year. With the implementation of new cooling measures in the private residential sector, we may well see investors’ interest shifting to strata-titled commercial units and shophouses,” noted Nguyen.
In all, 17 residential properties were successfully auctioned off for a total of $29.5 million, down from the $38.3 million during H1 2017. The biggest residential deal during the latest period is the $2.7 million sale of a condo unit. In comparison, one of the largest deals in the prior year was the divestment of a Good Class Bungalow (GCB) for $11.4 million in April.
Furthermore, Colliers thinks that owners of en bloc sites may turn to the auction market for replacement homes. However, it expects overall auction sales to fall to $85 million to $90 million this year versus $107 million for the whole of 2017.
“We expect auction listings to continue growing, driven by increased owners’ listings across most sectors. Mortgagee listings may plateau or grow at a slower rate with less distress in residential and office markets as these underlying markets picked up strongly over the past two quarters,” it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
