2009 residential sales top property auction market at S$88.35mln

52% of the 118 properties sold on the Singapore property auction market were residential property sales, totalling S$88.35 million in 2009.

The combined value of all properties sold is S$168.39 million. The second highest performer is the retail sector with 26 per cent in sales (S$43.40 million). Total sales this year almost double that made in 2008 of $83.67mln.

Ms Grace Ng, Deputy Managing Director (Agency and Business Services) and Auctioneer of Colliers International, says, “The better market performance this year is due to improving confidence beginning from March when the stock market rallied, which saw the monthly sale value progressing from S$12.96 million in March to S$25.92 million in August. After the introduction of the government’s property-cooling measures in September, monthly total sale value still hovered around the S$10-million mark from September to November. In December, the monthly sale figure dropped to S$6.98 million due to the year-end holiday season.

In general, the recovery phase this time is much stronger than that seen in 1998. A contributing factor could be the all-time low interest rate seen for home mortgage now, compared to the sky-high rate in 1998.”

The residential sector witnessed a 250 per cent jump in sale value, soaring from S$25.23 million in 2008 to S$88.35 million in 2009.

According to a note by Colliers International, upgraders were confident to commit to home purchases due to the recovery in the stock market, coupled with more positive economic sentiments since March 2009 and the low housing loan interest rates.

Meanwhile, the industrial sector enjoyed a 223 per cent growth, from S$6.20 million in 2008 to S$20.04 million in 2009.

As industrialists pursued expansion plans amid a more positive outlook, three JTC factories at Gul Road, Tuas Ave and Neythal Road were sold for S$3.0 million, S$3.53 million and S$2.75 million, respectively. 13 out of 20 properties also changed hands at below S$500,000, as industrialists bought factories at Cititech Industrial Building, Gordon Industrial Building and Henley Industrial Building for own occupation.