More owners scrambled to dispose properties amidst cooling measures in 3Q

[princess_morbucks]

Number of properties put up for auction soared 134%.

According to Knight Frank, more sellers are motivated to dispose their residential properties at reasonable prices in view of decreasing demand amid the cooling measures.

Sharon Lee, director & head for Auctions at Knight Frank, said sale enquiries are sustained for non-residential developments specifically for the Shop & Shophouses segment. Moving forward, more sellers could tap on the wider exposure offered by the Auction mode of sale in view of uncertain market conditions.

Knight Frank noted that the total number of properties put up for auction in 3Q 2013 continues to hold above 100 at 117, with 134% increase on a year-on-year basis.

- See more at: http://sbr.com.sg/commercial-propert....aBaOUROQ.dpuf

[leesg123]

Haha auction house getting desperate and anyhow talk down so that more flock to them.

Number of properties put up for auction soared 134%.

According to Knight Frank, more sellers are motivated to dispose their residential properties at reasonable prices in view of decreasing demand amid the cooling measures.

Sharon Lee, director & head for Auctions at Knight Frank, said sale enquiries are sustained for non-residential developments specifically for the Shop & Shophouses segment. Moving forward, more sellers could tap on the wider exposure offered by the Auction mode of sale in view of uncertain market conditions.

Knight Frank noted that the total number of properties put up for auction in 3Q 2013 continues to hold above 100 at 117, with 134% increase on a year-on-year basis.

- See more at: http://sbr.com.sg/commercial-propert....aBaOUROQ.dpuf

[玉格格]

is owners default installment liao house will auto be auctioned?
or it is the owners confirmed to the bank tat they cannot pay anymore ask the bank to auction?

[princess_morbucks]

is owners default installment liao house will auto be auctioned?
or it is the owners confirmed to the bank tat they cannot pay anymore ask the bank to auction?

http://www.bigfatpurse.com/2008/12/s...erty-auctions/

Interested to find Singapore properties going for auctions? There are 4 big licensed real estate auctioneers in Singapore and not in order of merit, they are:
Colliers International
DTZ Debenham Tie Leung
Jones Lang Laselle
Knight Frank

How does property auction work?
Property auctions usually happen once a month and sometimes, twice. You will be able to find the schedule of auctions in the respective websites of the auctioneers. The announcement of each auction is usually made 2 weeks in advance.
The seller of the property will set a reserve price that is only known between the auctioneer and seller. Initially, the auctioneer will open the bid with a slightly lower price than the reserve. The unit of each bid is between $10,000 to $20,000. Bidding will close if no higher bids are made. The highest bid in this case will be compared to the reserve price. If the former is higher than the latter, the transaction will go through. However, if the reverse is true, such that the winning bid is lower than the reserve price, the seller has the right to reject the bid and the property will not be sold.
The winning bidder will make a 10% deposit of the bid price. The sale will complete in 10 to 12 weeks from the auction date, and the remaining 90% will have to be paid.

4 kinds of seller


1) Owner’s Sale – Owner of the property, simple.

2) Mortgagee’s Sale – Usually this is a repossessed property when the borrower defaulted the loan. The mortgagee is either a bank or financial institution.

3) Trustee’s Sale – According to the will of the decease, the trustee handles the sale of the property and distribute the money to the beneficiaries.

4) Liquidator’s Sale – Company defaults a loan and a liquidator is appointed by court to sell the company’s property to repay its debts.

Things to do before the auction
Inspect the property - Nothing beats a visit to the property to be auctioned. Arrange to view the place with the auctioneer before the auction. You will be able to see the condition of the house and also get a feel of the neighborhood.

Check terms and conditions – Take note of the clauses and the strings attached. Are furnishings part of the sale? Is there a tenant? Find out the details so as not to have any surprises when you win the bid.

Prepare financially – Once you are happy with everything and eager to own the house, be sure you get the money ready. As mentioned, you would need to make a 10% deposit. Thus, make sure you have the money ready. Next, consult your bank to work out a loan to cover the shortfall. You do not want a case whereby you won the bid but not able to get a loan approved. If you void the contract because you are unable to pay the remaining 90%, your deposit will be forfeited. Worse, you may even have to pay for the shortfall when the property is re-sold for a lower price.

[radha08]

crash coming

[newbie11]

crash coming

Very very few are forced sale la..

[leesg123]

is owners default installment liao house will auto be auctioned?
or it is the owners confirmed to the bank tat they cannot pay anymore ask the bank to auction?

Over 90% of sales are owner's auctions. Owners thought through auctions it can fetch higher price and less problem compareed to going thru traditional agents.hence owners set a higher than usual market price hoping to strike gold. Watched too much movies already. Most owners auction didnt get pass the reserve price, hence poor business for auction house.

[relax88]

Why tell the truth....keep it a secret so that folks still think crash is coming mah...some secret are better kept, well secret

[newbie11]

Auction is bad strategy in quiet market

[princess_morbucks]

Over 90% of sales are owner's auctions. Owners thought through auctions it can fetch higher price and less problem compareed to going thru traditional agents.hence owners set a higher than usual market price hoping to strike gold. Watched too much movies already. Most owners auction didnt get pass the reserve price, hence poor business for auction house.

Mabbe the owner conduct the auction to test market?
Set the reserve price high, and if happen to have takers, then laugh all the way to the bank?

Btw, must the owner pay to conduct the auction?
Will the commission to the agent be different if a property is sold through an auction?

[peterng8]

The sellers are too hopeful that they can sell at high price for their resale now and can safely navigate through all CMs and especially TDSR...they are assuming all buyers are cash rich and assuming those who are really cash rich are also completely ignorant of the situations....

[oops]

Cooling measures are here to stay at least for another decades. This could be the last chance to cash out as local prop hibernate.

[woofwoof]

Cooling measures are here to stay at least for another decades. This could be the last chance to cash out as local prop hibernate.

Why so sure that cooling measures are here to stay? The government won't allow the market prices to drop too much- 5-10% is already a lot. By this time, the government woild have remove the cooling measures.

Too much drop, all the owners sibeh angry..

[WhoAmI?]

Mabbe the owner conduct the auction to test market?
Set the reserve price high, and if happen to have takers, then laugh all the way to the bank?

Btw, must the owner pay to conduct the auction?
Will the commission to the agent be different if a property is sold through an auction?

Anybody know how much owner needs to pay to auction house?
If compara is it cheaper than paying to agent commission, say property value 3 million?
Among the four auction houses which one you choose?

Thanks in advance.

[leesg123]

Mabbe the owner conduct the auction to test market?
Set the reserve price high, and if happen to have takers, then laugh all the way to the bank?

Btw, must the owner pay to conduct the auction?
Will the commission to the agent be different if a property is sold through an auction?

Got a listing fee. Commission for succesful sale is same same.

those the usually get through are those shophouse or rare units. For most units owners are quite dump to set high reserve price as now plenty of info are available.

[newbie11]

auction info is transparent. u can find out unit no, and anyone can view. i.e. telling whole world u selling and still cant sell.

[RCT]

Why so sure that cooling measures are here to stay? The government won't allow the market prices to drop too much- 5-10% is already a lot. By this time, the government woild have remove the cooling measures.

Too much drop, all the owners sibeh angry..

The question is how much people have more than 1 property? If you only have 1 property, I don't think you care too much how much the price go up or down. If only a small group of people have more than 1 property and they get sibei angry, you think the government care?

[GIG]

Why so sure that cooling measures are here to stay? The government won't allow the market prices to drop too much- 5-10% is already a lot. By this time, the government woild have remove the cooling measures.

Too much drop, all the owners sibeh angry..

Past owners sitting on large profit. Govt not worried about them.
How low they sell govt don't care.
The Govt putting the financial prudence now, to protect the buyers now,
If buyers buy now, their purchased value can get even lower.
But the govt will not tell you if it is the right time to buy.
The govt only touch the framework of the financial environment.
Its up to buyers and sellers to decide on value.
But the govt can decide on the direction of property prices.
At this moment, their direction is clear, propery prices has to go down.
Cooling measures work both ways, bring the price down and put a safeguard.

[walkthetiger]

Past owners sitting on large profit. Govt not worried about them.
How low they sell govt don't care.
The Govt putting the financial prudence now, to protect the buyers now,
If buyers buy now, their purchased value can get even lower.
But the govt will not tell you if it is the right time to buy.
The govt only touch the framework of the financial environment.
Its up to buyers and sellers to decide on value.
But the govt can decide on the direction of property prices.
At this moment, their direction is clear, propery prices has to go down.
Cooling measures work both ways, bring the price down and put a safeguard.

Now only left those fews who are hanging on, either they have forgotten to exit, or overly tempted(maybe poisoned) by interest rate and rental yield..some could still be dreaming of capital appreciation at this time.... good luck to them..

[walkthetiger]

Past owners sitting on large profit. Govt not worried about them.
How low they sell govt don't care..

My bungalow bought in 70s and some other properties 80s.. let say they drop 30% few years later, i don't feel a pinch. As the asset value had already multiple by many many folds now.
All about timing, then the location.

[sgbuyer]

My bungalow bought in 70s and some other properties 80s.. let say they drop 30% few years later, i don't feel a pinch. As the asset value had already multiple by many many folds now.
All about timing, then the location.

If you're over the age of 65, you can't use the money anyway. The folks sitting on huge paper gains on their property bought 30-40 years ago can't bear to spend the money. Thus goes the saying, when you are poor, you fear you got no money, and when you are rich, you fear losing your wealth.

Those with children fear that their children will fight over it or go to the casino in the future. Those without children are worried what to do with the money after they pass away in the not so distant future.

The young middle class got little spare cash, as their money goes into the mortgages and loans.

So in a way, everyone feels cash strapped. This is one of the ironies of Singapore.

[minority]

If you're over the age of 65, you can't use the money anyway. The folks sitting on huge paper gains on their property bought 30-40 years ago can't bear to spend the money. Thus goes the saying, when you are poor, you fear you got no money, and when you are rich, you fear losing your wealth.

Those with children fear that their children will fight over it or go to the casino in the future. Those without children are worried what to do with the money after they pass away in the not so distant future.

The young middle class got little spare cash, as their money goes into the mortgages and loans.

So in a way, everyone feels cash strapped. This is one of the ironies of Singapore.

Really actually I will rather spend it then to let another generation who never work for it spend the $.. leave enough for them to eat. they need to find their own cheese!

[walkthetiger]

If you're over the age of 65, you can't use the money anyway. The folks sitting on huge paper gains on their property bought 30-40 years ago can't bear to spend the money. Thus goes the saying, when you are poor, you fear you got no money, and when you are rich, you fear losing your wealth.

Those with children fear that their children will fight over it or go to the casino in the future. Those without children are worried what to do with the money after they pass away in the not so distant future.

The young middle class got little spare cash, as their money goes into the mortgages and loans.

So in a way, everyone feels cash strapped. This is one of the ironies of Singapore.

或许一切都是大自然规律....

[Lovelle]

i inquired about these auctions before . the price quoted to me is no fire sale or crash price.

i am more concerned about the riot and social unrest