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A total of 378 properties were placed under the hammer in the first half of the year, up 38.5 percent from the 273 listings seen during the second half of last year, according to the latest report from Colliers International.
Of this, 105 were mortgagee listings, translating to an increase of 10.5 percent compared to the 95 listings recorded in 2H 2014. Retail and industrial properties respectively accounted for 6.7 percent and 14.3 percent of the mortgagee listings, noted the consultancy.
In particular, there were 15 strata industrial units—more than double the 6 strata industrial units in 2H 2014. Among them were units from Pantech Business Hub and Penjuru Tech Hub in the West. This also include premises from UB One, Empire Techno Centre, Paya Ubi Industrial Park and the Entrepreneur Business Centre, which are all situated in the Kaki Bukit/Ubi area.
Colliers’ Deputy Managing Director Grace Ng said industrial unit owners are facing a challenging time due to the supply glut in the market and the government’s property cooling measures, especially the Total Debt Servicing Rating (TDSR) framework, resulting to an increased number in industrial units being auctioned.
“Strata industrial property owners, who are in default, face stiff competition for tenants, owing to the abundant supply of strata-titled industrial units in the market. What is more, the lull in the industrial property sector is worsened by the government loan curbs,” she noted.
Of the total number of properties available for bidding in 1H 2015, 17 were successfully auctioned off for an aggregate price of S$45.14 million.
The most notable commercial property auction involves the sale of a row of shophouses at Teck Chye Terrace in Upper Serangoon Road for S$14.63 million. This was the only transaction that breeched the S$5 million mark during the period.
Looking ahead, Singapore’s property auction market is expected to generate S$30 million to 35 million in sales for 2H 2015. “This will bring the total sale value for the entire year to be about S$80 million, slightly higher than the S$72.5 million recorded in 2014,” Ng added.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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