Auction sales values plunged 39% to $4.6m

[princess_morbucks]

Due to fewer 'big ticket' deals.

According to Knight Frank, total auction sales values dipped by 39% from $7.6m in 2Q 2013 to $4.6m in 3Q 2013. Since 3Q 2012, the total value has been below the $10m mark. 1Q was an exceptional period where total sales value hit $83.4m with successful transactions of 'big ticket' properties, such as Good Class Bungalow (GCB) at the Chee Hoon Avenue, Shophouses at Tras Street, and an industrial property at Benoi Road.

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Amongst the total auction sales value in 3Q 2013, residential properties comprised 52% while industrial property formed the rest at 48%.

The lack of big ticket property transactions and shortage of available properties that cater to the needs of most buyers are factors affecting the overall sales activity via auction. Amongst the 45 properties put up for auction in October 2013, only TechPark was transacted at $30,000 above the opening price of $630,000.

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

[princess_morbucks]

Buying sentiments dampened by global uncertainties.

According to Colliers International, the Singapore property auction market concluded the year with a total of 19 properties sold, out of 488 properties that were put up by all auction houses. The total sale value, which exceeded the S$62.44 million garnered in 2012 by some 46.7 percent.

The increase in sale value this year was achieved despite a 20.8 per cent decline in auction sale volume – from 24 properties sold in 2012 to 19 sold in 2013.

The higher total sale value this year was mainly driven by the successful sale of four high-value properties2 that were hammered down in 1Q 2013 at a total of S$70.1 million. Collectively, they constituted to a whopping 76.5 per cent of the total sale value in 2013.

Nonetheless, the year saw property auction activity fizzling out after the first quarter – with sale value declining from S$76.08 million in 1Q 2013 to only S$3.9 million in 4Q 2013.

- See more at: http://sbr.com.sg/residential-proper....7JyakNkZ.dpuf