The local auction market experienced a “cooling” period in the first quarter of this year, with only three properties sold out of 84 properties auctioned, according to the latest report by property consultancy firm Jones Lang LaSalle.
In the same period last year, 17 properties were sold out of 120 properties auctioned.
Among the three properties sold during auctions in the first quarter of 2012, two were commercial and industrial properties while the third was a residential property.
Head of Auctions at Jones Lang LaSalle, Mok Sze Sze, said: “The property buying market seems to have come off the healthier sales rate of 10 per cent last quarter, which is no surprise, given the weaker overall sentiment, but there has still been strong demand for industrial and commercial properties.”
Investors expect these non-residential properties to offer greater access to funds through higher loan-to-value ratios and yields.
The study also foresees that auction sales of private residential properties will likely pick up pace later this year, as both buyers and sellers realign their expectations following a clearer market direction since the cooling measures implemented in December 2011.
Source : Channel NewsAsia – 3 Apr 2012