TODAY ONLINE : Property auction market up 20% on-year

Property auction market up 20% on-year

Buying interest remains keen as liquidity in market is high

05:55 AM Jul 01, 2010

by Jo-Ann Huang joannhuang@mediacorp.com.sg

SINGAPORE - The Singapore property auction market saw a 20-per-cent rise on-year in the first half of this year to $87 million, according to property consultants Colliers International.

A total of 440 properties were put up for auction - of which 378 were from property owners while 62 were mortgagee sales.

Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.

April saw the highest value from auctions when 12 properties, with a total value of more than $24.4 million, changed hands.

There was a lull in May, when only two properties were sold for $6.89 million.

This could be due to concerns over the European debts, as well as the tension between North and South Korea that sent jitters through the stock market, said Colliers.

Buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.

The sale of seven landed properties contributed 23.1 per cent or $20.08 million to auction transactions during the six-month period.

Four of the seven landed properties are in Bukit Timah.

Other types of properties sold by auction are retail properties, which contributed $20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed $13.38 million or 15.4 per cent.

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