Owners’ sales gaining in popularity

/ EdgeProp
July 9, 2018 8:00 AM SGT
With the residential market picking up, the number of listings by owners at auctions has also risen significantly in 2Q2018. The resale market is healthier, too, with cash-rich en bloc beneficiaries buying replacement homes, notes Joy Tan, head of auction & sales at Edmund Tie & Co (ET&Co).
More properties listed for auctions have also been sold via private treaty, especially for higher-quantum properties whose buyers want to remain anonymous, notes Tan. Banks are also more flexible in considering a sale before auction “if the price is at or above their expectations”, she adds. Private owners are also open to selling by private treaty prior to the auction if there is an attractive offer.
In 2Q2018, several high-end properties were sold at ET&Co’s auctions. They included a semi-detached house on Pasir Ris Way, a mortgagee sale; it attracted 15 bids and went under the hammer for $5 million in May. At auctions in 2Q2018, owners’, estate and trustees’ sales saw a combined total of $11.19 million in transaction value, while mortgagee sales totalled $8.45 million. In 2017, there was a total of 33 forced sales (mortgagee, receivers’ and sheriffs’ sales), compared with 12 owners’, estate or trustees’ sales.
“In past years, mortgagee sales dominated the auction floor,” says Tan. “Owners’ listings have caught up and exceeded the number of mortgagee sales [last] quarter. This is a reflection of how the market has accepted auctions as an alternative way to sell their properties.”
The total value of properties sold under the hammer in 2Q2018 was $19.64 million, compared with $10.48 million the previous year. In 1H2018, the total number of properties sold at auction was 21, with a sales value of $39.6 million. In 1H2017, the number of properties sold at auction was 18, with total sales of $44.71 million, according to JLL. In this period, the highest value of a property sold at auction was $11.38 million for a detached house on Chestnut Drive sold by Colliers International. In comparison, the highest value sold at an auction so far this year by ET&Co was the semi-detached house at Pasir Ris...