Property auction-action heats up

The property auction sector has seen more action of late as owners who are in urgent need of selling veer towards this route.

More take to selling properties off at auctions

While the number of properties put up for auction has increased in the first half of the year, sales value has fallen.

Part of the reason could be that the properties included in the auctions have not been big-ticket ones such as landed homes. The increase in foreign-interest may also mean sellers see more incentive in keeping their properties on the market.

Bodmin Drive, Landed Property. Picture: iProperty

The total transaction value in H1 came in at 11.2% lower than the same time period last year. The sales value for the first half of this year was $39.6 million, dropping to an average of $2 million down from last year’s $2.9 million. 499 properties were put up for auction in the first 6 months of the year, 24.3% more than 2017.

Auctioneers and marketers have been quick to spot a trend with the buyers, most of whom are still attracted to properties in choice locations and priced reasonably so.

The proportion of residential properties available for auction were however low as the number of collective sales or en bloc sales closed in the earlier part of the year remained high. Activity in that sector has however stabilised somewhat, especially after the caveats given by the authorities.

See more: Landed properties in some districts worth a second look

Fewer landed homes sold at auctions but more residential listings expected

As the rental market makes continued effort to stabilise itself, leasing activity has remained subdued in H1. Some sellers are experiencing the pressure to sell and the recent cooling measures have certainly not helped matters.

Buyers who have just been gradually overcoming their price-sensitivity may now be more keen on stretching their dollar.

There was a however slightly more auction-action in District 17 (Changi and Loyang) with 23 residential properties listed for auction. This is the highest figure recorded since 2011 for this district.

See more: Home rental market holding up well despite cooling measures