Residential auction sales sink to record low of 0% success rate

Buyers waiting for further price adjustments.

Residential property auctions received a very disappointing response from buyers, according to Knight Frank, with the 4Q 2013 posting a 0% success rate -- the lowest in a decade.

Albeit the number of residential properties put up for auction remained relatively inert at 58 properties, the success rate of residential properties in 4Q 2013 was zero, which was unprecedented going as far back as 2004.

Amongst the 58 residential properties put up for auction in 4Q 2013, 69 per cent were non-landed properties, whilst the remaining 31 per cent comprised detached, semi-detached and terrace houses.

"Residential sector in the auction market remained muted as potential buyers largely adopted a wait-and-see approach, in anticipation of further price adjustments by sellers," explained Knight Frank on the disappointing sales performance.

Knight Frank noted that in 2013, residential properties sold via auctions followed the same trend as in the preceding year.

"The series of anti-speculative government measures on property will continue to dampen the demand for residential properties, and this could persist for first half of 2014 or even longer," the research firm warns.