39 properties auctioned in 2022 with total sale value of $88.9 mil: Edmund Tie

SINGAPORE (EDGEPROP) - A total of 39 properties were sold under the hammer in 2022, amounting to a total sale value of $88.93 million, according to data compiled by Edmund Tie. This represents a 22.3% decline y-o-y. In 2021, 32 properties were sold for a total of $114.42 million.

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Notwithstanding the y-o-y decline in overall sale value, Joy Tan, Edmund Tie’s head of auction and sales, notes that the auction market saw a “relatively healthy year”. She attributes the lower sale value to fewer transactions of $5 million and above. “Plus, most of the high-value transactions in 2021 were in the higher range of between $7 million and $10 million, whereas in 2022, most were in the S$5-8 million range,” she adds.

The total sale value also excludes deals closed via private treaties, which means a number of notable deals are not included in the final tally. “For instance, the Edmund Tie auction & sales team sold a land plot at Joo Chiat Road for $22 million in May and a seafront detached house at Ocean Drive for $18.3 million in August, both of which are high-value transactions that closed before auction,” Tan explains.

A total of 459 properties were put up for auction in 2022. Of this, 267 (58%) were owner listings, while 158 (34%) were mortgagee listings. The remaining properties comprised other listings including estate, sheriff, and MCST sales.

The proportion of owner listings in 2022 is the highest in seven years. It is also the second consecutive year owner listings have surpassed mortgagee listings. “Given record residential prices this year, there were reasonably fewer distressed sales,” Tan observes.

She adds that the higher share of owner listings points to a growing number of owners turning to the auction market to sell their property. “ In fact, we have observed that many owner-investors are leveraging the healthy real estate market this year to divest their properties as part of their portfolio restructuring, and tapping into the auction market as an additional disposal vehicle,” she says.

Residential properties made up the bulk of properties auctioned this year, with 20 units sold for a total sale value of $52.71 million. Commercial properties made up the second biggest segment, with 10 units sold for a total of $13.47 million.

​​Notable residential transactions include a townhouse unit at 8 Nassim Hill that was sold under the hammer for $9.79 million in February. In April, a semi-detached house at Nim Green was auctioned for $6.33 million – $500,000 above the opening price. Meanwhile, commercial transactions included a sheriff’s sale of a medical suite unit at Mount Elizabeth Medical Centre. The unit was auctioned successfully for $8.44 million in May. (Find Singapore commercial properties with our commercial directory)

Looking ahead, Tan expects more distressed sales in 2023, amid an uncertain economic environment and rising interest rates. As borrowers start to feel the strain of increased monthly mortgages, she anticipates a growing number of distressed sales especially in the second half of the year.

At the same time, Tan views that buyers may also moderate their offer prices. “As such, auction sales are likely to only pick up from 2Q2023, when buyers and sellers adjust their price expectations accordingly, following a clearer sense of the market,” she opines.

She expects the steady number of owner listings to continue into the new year. “All in, we foresee the property auction market to offer different property types that can cater to different buyer profiles in the new year. And with in-person auction sessions now fully back in action, 2023 is going to be a pretty busy year for the Singapore property auction market,” she says.