Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie
Cognisant of the upcoming new nonpublic residential jobs set to reach the marketplace over the upcoming few quarters, potential customers are keeping back on their purchases, says Tan, adding that outside factors such as worries of an upcoming economic crisis and higher rates of interest are also impacting sales.
According to Joy Tan, head of sell-off and sales at Edmund Tie, the low sales value in 1H2023 was due to “the properties pounded being of reduced quantum, mainly possibly below or just past the S$ 1 million mark. There was a single high-value transaction that was over S$ 5 million”.
She includes that within the past few months, capitalists are displaying a growing acknowledgment towards leasehold buildings with shorter remaining lease periods of usually 30 to 60 years. “This is likely due to financiers’ higher possibility tolerance, as financial markets stay volatile, as well as an obvious choice shift to substitute investment possibilities.”
Looking in advance, she assumes to see mortgage listings pick up merely in 2024, given the time lag between financial institutions reclaiming properties as well as putting them up for auction. She also anticipates commercial listings to garner more purchasing interest. “Given that commercial deals will not incur extra buyer’s stamp obligation and also with the rise in household workplaces in Singapore, well-priced workplace listings will also likely be very demanded,” she explains.
The “high-value purchase” was for a three-storey semi-detached home on Vaughan Road that was transacted for $6.3 million. Additionally, 7 of the profitable properties sold at auction were industrial properties, with the rest being 3 homes along with a workplace real estate.
” Furthermore, on the back of the high interest rates, the cooling down actions declared in April and also the total unpredictable macro setting, customers have normally followed a wait-and-see position,” claims Tan.
The local property auction market efficiently offered 11 real estates over the initial six months of this year. A research study note posted by Edmund Tie mentions that the total sale value for the successfully auctioned real properties was $15.2 million.
This was the most affordable sales value reported by the auction market ever since 1H2020, the beginning of the Covid-19 pandemic, the moment only one property was yielded $0.94 million. It is in addition a major decline of 59.7% matched up to 2H2022 which reported 17 sales cost $37.7 million.
