Auction property sales crashed 76.5% to $17.8m in 1Q14

More buyers looking for cheaper assets.

According to Colliers International, six properties were sold at auction in 1Q 2014, generating a total sale value of S$17.87 million. This was 76.5 percent down from the S$76.08 million amassed in 1Q 2013. It should, however, be noted that the high value recorded in 1Q 2013 was due to the sale of four high-value properties. 

Four of the properties sold were forced sale/mortgagee listings. They included a shop unit at Golden Mile Complex at Beach Road, which was sold for S$550,000 and three residential units.

They are Wilkie Apartment (Dhoby Ghaut), The Anchorage (Alexandra Road) and Draycott 8 (Orchard Road), which were knocked down at S$1.46 million, S$1.1 million and S$5 million, respectively. 

The other properties sold were put up by owners. A strata-titled factory unit at Enterprise Hub located in Jurong was hammered down at S$1.21 million, while 4 adjoining office units at Orchard Shopping Centre in Somerset were collectively sold for S$8.55 million.

Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, comments, “Due to concerns about affordability brought on by financing curbs such as the TDSR, it was observed that properties with a price tag of less than S$1.5 million have generally been able to attract buyers.”

She adds, “The low level of transactions this quarter reiterated the persistent stalemate between buyers and sellers. 

Although sellers are now more willing to negotiate in light of the softer market sentiments, it is a buyers’ market now – with many adopting a wait-and-see approach in anticipation of price declines on the back of supply pressures in the near future. Hence, offers to purchase now are often opportunistic, as buyers will only choose to commit if they find an attractive bargain.”