Auction sales in Singapore crashed 91.6% to S$7.05m

Only 4 properties were sold.

According to Colliers International, the Singapore property auction market was relatively quiet in 2Q 2013, with both sale volume and value paling in comparison to that recorded in 1Q 2013. 

The total sale value of S$7.05 million in 2Q 2013 reflected a 91.6 per cent plummet from the S$83.44 million recorded in 1Q 2013. 

Only 4 properties were sold in 2Q 2013.

They included a 2-storey terrace house at Woo Mon Chew Road (East Coast) sold for S$2.85 million; an HDB shophouse at Toa Payoh sold for S$2.568 million; an apartment in Novena Court (Jalan Barat) sold for S$1.2 million; and a shop at High Street Centre (North Bridge Road) sold for S$430,000.

Ms Grace Ng, Deputy Managing Director of Colliers International, says, “The subdued property auction market in the second quarter is a clearer reflection of the impact of the continuous government curbs in the residential sector, with the last wave of cooling measures implemented in Performance in the secondary market became lacklustre during the quarter, when buying demand was diverted to the primary sales market. 

Buyers were attracted to various sweetenersm developers to cushion the impact of the Additional Buyers’ Stamp Duty (ABSD).” 

Ms Ng continues, “Subdued market activity was further perpetuated by the persistent stalemate between buyers and sellers.

While owners are holding on to their property, waiting for an offer that meets their price expectation, home buyers who now have to fork out larger cash outlay – due to the increase in ABSD, higher cash down payment and lower loan-to-value ratios – may take a more discretionary view of home buying. 

Coupled with the threat of a possible increase in interest rates, some buyers have also adopted a wait-and-see attitude in anticipation of a possible price fall.”

Additionally, buying sentiments was also affected by the stock market sell down across the May-to-June period, exacerbated by fears that the United States central bank would start to cut back on monetary stimulus amid ongoing uncertainties in the global economy.

Together with concerns on the significant supply of residential units in the pipeline – with some 110,000 public home units and 90,000 private home units including executive condominiums slated for completion by 2016, buying interest in the private residential market could also be impacted. 

Nevertheless, the total sale value in 1H 2013 tallied to S$90.49 million – contributed mainly by the sale of 5 high-value properties in 1Q 2013 which raked in a whopping S$77.46 million.