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15-10-11, 18:44
http://www.businesstimes.com.sg/sub/suite/story/0,4574,459930-1318363140,00.html?

Published October 11, 2011

Auction sales at lowest level since Q1 2009: JLL

By UMA SHANKARI


THE debt crises in Europe and the US have dampened investor sentiment in the auctions market, according to a new report from Jones Lang LaSalle (JLL).

Data from the property firm show that in Q3 2011, the number of auction transactions fell to its lowest level since Q1 2009.

Just seven deals took place in the third quarter of this year, JLL said. This is the lowest number of transactions since the first quarter of 2009, when 11 properties were sold.

The percentage of properties sold (from those put up for sale) also fell to just 6 per cent in Q3 2011 - the lowest since Q1 2009 as well.

'While the seasonal slowdown due to the Hungry Ghost Festival could have had some impact, it is likely that investors are adopting a wait and see approach amidst the uncertain global economic climate,' JLL said in a report.

The situation mirrors that of 2008 when sub-prime mortgages triggered the global financial crisis, it said, adding: 'As such, we can expect transactions to remain muted as investors grapple to make sense of the current economic climate.'

JLL also noted that investors have been turning to other sectors after four rounds of cooling measures that have restricted residential purchases.

The proportion of residential transactions has generally been on a decline while the commercial sector has emerged as the choice investment alternative, the report said.

Going forward, the firm expects to see more willing sellers put their properties on the market. And although the market is generally cautious, there will still be buyers as interest rates continue to be favourably low, JLL said.