Market comparable to introduction of Total Debt Servicing Ratio in 2013
SINGAPORE, 28 September 2018 – Q3 2018 saw a total units’ sales value of $10.44m in the auction market. This reflects a year-on-year (y-o-y) drop of approximately 77.1 per cent, from $45.59m in Q3 2017, which may have been a result of the new cooling measures effective on 6 July, and the Hungry Ghost Month.
The units sold via auction in Q3 2018, excluding private treaty sales and units transacted before or after the auction, are as follows.
|Property||Auctioned amount||Property type|
|Eleven @ Holland, #01-11, 11 Holland Link (D10)||$3,250,000||Residential|
|The Arte, #17-12, 23 Jalan Raja Udang (D12)||$1,480,000||Residential|
|ECO, #02-52, 283 Bedok South Avenue 3 (D16)||$760,000||Residential|
|Southaven 1, #06-05, 41 Hindhede Walk (D21)||$835,000||Residential|
|Meadow Lodge, #03-14, 31 Chun Tin Road (D21)||$1,450,000||Residential|
|The Commerze @ Irving, #07-13, 1 Irving Place (D13)||$990,000||Industrial|
|Ubi Techpark, #07-30, 10 Ubi Crescent (D14)||$660,000||Industrial|
|Tuas Lot, #02-13, 50 Tuas Avenue (D22)||$483,500||Industrial|
|Jurong Foodhub, #06-19, 15 Jalan Tepong (D22)||$535,000||Industrial|
Q3 2018 saw only nine units that were successfully knocked down, with five residential properties and four industrial properties totalling $7.78m and $2.668m respectively. While all eight of the nine units sold under the hammer were mortgagee sales, several owner’s sale listings were sold before or after the auction via private treaty.
This quarter also saw a lack of high quantum properties sold via auction. Despite the sale of 10 units with a total value of $19.64m in Q2 2018, there was still a 46.8 per cent decrease q-o-q. Q2 2018 saw several high-quantum landed properties, such as 25 Pasir Ris Way (D18), sold at ET&Co’s auction at $5m, 42 Hoot Kiam Road (D10) and 26 Burghley Drive (D19), sold at $3.2m and $3.12m respectively. The highest quantum sold this quarter was a strata-titled semi-detached at Eleven @ Holland, knocked down under owner’s sale at $3.25m during Edmund Tie & Company’s auction on 26 September 2018.
Head of Auction & Sales, Joy Tan, commented, “Industrial and commercial properties sold are on the rise since the latest adjustment of the Additional Buyer’s Stamp Duty and other new cooling measures introduced in July 2018.
“The cooling measures, coupled with the Hungry Ghost Month, has not only affected market sentiments among new and resale private homes, but also on the auction front. Quarterly sales have not been this low since the introduction of Total Debt Servicing Ratio on 29 June 2013, where auction sales in Q3 dipped to $4.6m from $7.6m in Q2, and sentiments stayed low into Q4 at $3.9m.
“Residential buyers, especially those who are seeking to buy their second or more properties for investment purposes, have adopted a wait-and-see attitude, while sellers have yet to adjust their price expectations. With this, as well as the current economic outlook and Trade War negotiations, we expect the property market to be generally muted until after the Lunar New Year in February 2019.”
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About Edmund Tie & Company
Edmund Tie & Company (ET&Co) is a full-service, real estate consulting firm with more than 500 skilled professionals in the region. It is headquartered in Singapore and supported by offices in Kuala Lumpur, Malaysia, and Bangkok, Thailand. ET&Co offers a comprehensive suite of agency and professional services including investment advisory, commercial and retail, residential agency, auction and sales, valuation advisory, statutory valuation and property tax advisory, research and consulting, property management, and hospitality management. For more information, please visit www.etcsea.com