Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie
Cognisant of the upcoming new private residential projects set to reach the marketplace over the following few quarters, potential customers are keeping back on their acquisitions, claims Tan, including that exterior variables like worries of an approaching economic downturn together with greater rate of interest are even influencing sales.
She adds that over the past couple of months, capitalists are showing an increasing acceptance towards leasehold real estates with much shorter standing lease tenures of usually 30 to 60 years. “This is likely due to financiers’ greater risk resistance, as financial markets stay unstable, and also a noticeable preference change to substitute investment possibilities.”
Lentor Hills Residences Singapore
” In addition, on the back of the high interest rates, the cooling actions declared in April plus the overall unconfirmed macro setting, buyers have actually usually adopted a wait-and-see posture,” says Tan.
Looking in advance, she anticipates to see mortgage listings pick up merely in 2024, given the moment lag between banks repossessing residential properties and placing them up for public sale. She as well anticipates commercial listings to amass even more acquiring interest. “Given that commercial deals are going to not incur additional purchaser’s stamp duty and with the increase in household offices in Singapore, well-priced workplace listings will also likely be highly demanded,” she explains.
The “high-value transaction” was for a three-storey semi-detached house on Vaughan Street that was transacted for $6.3 million. Moreover, seven of the profitable real estates sold at auction were industrialized residential properties, with the remainder being 3 properties and a workplace residential property.
This was the lowest sales market value documented by the auction sale market since 1H2020, the start of the Covid-19 pandemic, when only one estate was brought $0.94 million. It is also a major decline of 59.7% contrasted to 2H2022 which logged 17 sales value $37.7 million.
The regional real property auction sale market successfully marketed 11 real estates over the first 6 months in this year. A research note published by Edmund Tie mentions that the total transaction worth for the properly auctioned real estates was $15.2 million.
Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie
According to Joy Tan, head of auction and sales at Edmund Tie, the low sales value in 1H2023 was because of “the properties hammered being of reduced quantum, mainly possibly beneath or simply past the S$ 1 million mark. There was sole high-value deal that was over S$ 5 million”.
