Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie

Cognisant of the upcoming new exclusive residential jobs readied to reach the market over the upcoming few quarters, prospective purchasers are keeping back on their investments, says Tan, including that outside aspects including fears of an upcoming recession also higher interest rates are similarly influencing sales.

She adds that over the past couple of months, financiers are displaying an increasing approval in the direction of leasehold properties with much shorter standing lease tenures of usually 30 to 60 years. “This is likely because of investors’ greater risk tolerance, as economic markets stay unstable, and a noticeable choice change to alternative investment opportunities.”

The “high-value deal” was for a three-storey semi-detached home on Vaughan Street that was transacted for $6.3 million. Additionally, 7 of the successful real estates sold at marketplace were industrial properties, with the remainder being three residential properties along with a workplace real estate.

According to Joy Tan, head of sell-off and sales at Edmund Tie, the small sales worth in 1H2023 resulted from “the real estates hammered being of low quantum, primarily possibly below or simply past the S$ 1 million mark. There was only one high-value deal that was above S$ 5 million”.

Tembusu Grand City Developments Ltd & MCL Land

The local property auction sale marketplace efficiently marketed 11 properties over the first 6 months in this year. An analysis note published by Edmund Tie states that the total transaction price for the properly auctioned real estates was $15.2 million.

This was the lowest sales market value recorded by the auction market ever since 1H2020, the start of the Covid-19 pandemic, the moment only one estate was brought $0.94 million. It is also a notable decline of 59.7% compared to 2H2022 which logged 17 sales value $37.7 million.

Looking ahead, she expects to see property loan listings pick up only in 2024, given the time lag between financial institutions retrieving residential properties and putting them up for public sale. She as well anticipates commercial listings to garner even more acquiring interest. “Given that commercial purchases are going to not incur additional customer’s stamp obligation and with the rise in family offices in Singapore, well-priced business office listings will also likely be extremely demanded,” she says.

” In addition, on the back of the high interest rates, the air-cooling measures released in April and the general unpredictable macro surrounding, buyers have normally adopted a wait-and-see position,” says Tan.

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