Knight Frank revealed that 449 properties were placed under the hammer during the first six months of 2018, up 23.4 percent over the same period last year, while sales value dropped 11.2 percent to around $39.6 million, reported The Straits Times.
Despite the rise in the number of properties put up for auction during the first half of the year, transaction value fell due to the absence of big-ticket landed units.
The property consultancy noted that residential property dominated the auction listings, which included 157 for mortgagee listings, a decline from the 159 registered in 2H 2017.
The pipeline of mortgagee listings stabilized as some owners were able to sell their properties prior to foreclosure, said Knight Frank.
The number of prime residential properties being auctioned remained subdued in 1H 2018, likely because the wealth of en bloc sales and the increased interest from foreigners implied lesser need to place the properties up for auction.
With no big ticket items sold, residential properties sold at auction achieved an average price of $2 million, down from $2.9 million last year.
Looking ahead, Knight Frank expects this year’s auction listing to include more residential units as homeowners find it hard to sell their properties due to the new cooling measures.
It was added that the number of mortgagee listings will likely remain stable despite higher interest rates as the hike have been gradual and the rental market has showed some improvement.
But considering the recent cooling measures, Knight Frank expects buyers to be even more price-sensitive.