Singapore’s property auction sales drops by 27%

Sales only amounted to S$63.1 million versus last year’s S$87 million.

According to Jones Lang LaSalle, the number of mortgage sales put up is less than half of that for the same period last year due to the improved economy, and the proportion of owners’ sales has increased as auctions become accepted as a good, transparent method of sale.

Jones Lang LaSalle’s Auction House reported that they achieved sales totalling $16.21 million at the 23 Jun 2011 auction–“ a record amount” sold in a single auction since the beginning of this year.

Ms Mok Sze Sze, Head of Auctions, Jones Lang LaSalle commented “The inherent advantage of having no cooling off period and the opportunity to achieve optimum price through this competitive auction process is a deciding factor for owners using this method of sale.

“Many owners are also taking advantage of the auction process and are attracted to the higher level of 10% upfront deposit required. Commercial property is still in favour with investors as evidenced by the latest auction on 23 June 2011 where properties sold were mainly commercial.”

At Jones Lang LaSalle’s June auction, a shop unit at Fook Hai Building, listed as an owner sale
attracted a total of 23 bids to achieve a sale price of $6.6 million, 20% above the opening bid of $5.5 million.