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Despite the muted environment within the property sector, the auction market saw total sales value surge 42.8 percent to S$21.2 million in Q3 2016 from Q2 2016’s S$14.8 million, according to JLL.
This equates to a 120 percent increase from the S$9.6 million sales value registered in Q1 2016.
“This uptrend in sales value brings the total to S$45.6 million as we enter the last quarter of 2016,” it said.
While a total of 14 units were sold in Q3 2016, compared to only six in each of the previous two quarters, only a slight increase of 42.8 percent was noted when compared to Q2 2016. JLL attributed this to the lack of big ticket items, given that only four units hammered were above the S$1.5 million mark.
Of the total sales value, industrial properties accounted for S$4.8 million with five properties sold, while commercial properties contributed S$4.3 million (two properties).
In terms of the seller’s profile, mortgagee and owner sale listings contributed an almost even sales value at S$7.5 million and S$8.8 million respectively.
JLL, however, noted that Q3 2016’s S$21.2 million sales figure presents a steep year-on-year fall of 114.2 percent from Q3 2015’s S$45.3 million. Notably, the 2015 figure was boosted by several big ticket transactions such as the sale of two shophouses at 1 Figaro Street and 362 Tanjong Katong Road for S$6.5 million and S$6.4 million respectively.
“With the uncertain economic outlook and current buyer’s market, auction will likely become a preferred mode of sale for owners where a definite timeline is set for decision with no cooling off period,” said JLL head of auction and sales Mok Sze.
“In addition, we anticipate that there will an increase in mortgagee sales of between 10 to 20 percent next year.”
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg