The recently concluded Hungry Ghost Month may have scared away some property buyers in the auction market.
Property consultant Colliers International said Wednesday only three properties worth a total of S$5.2 million were sold by all auction houses during the Hungry Ghost Month period.
The three properties included two shophouses at Dunlop Street, an HDB shop at Bishan and a strata factory at Toh Guan Centre.
No residential properties were successfully concluded during the Hungry Ghost Month period, which falls from August 10 to September 7 this year.
In contrast, last year saw 14 transactions worth S$25.9 million, of which some S$19 million was contributed by the residential sector.
But Colliers said the low volume could be due to sellers’ increased expectations and higher asking prices.
This leads to a longer period of marketing and negotiations as buyers’ resistance set in over time.
Colliers added cultural taboos attached to the Ghost Month have little or no impact to buyers nowadays.
It noted the total number of properties put up for auction during the Ghost Month remained high at 51.
Going forward, Colliers said the auction property market may take a hit from the government’s recent cooling measures.
But it still expects well-located landed properties in Districts 9, 10 and 11 to be able to continue to attract upgraders.
It said homes in those areas were usually targeted by owner-occupiers buying for mid- to long-term stay and would not be affected by the new stamp duty measures
Furthermore, it said this group of buyers has the tendency to take a lower percentage of financing.
Source : Channel NewsAsia – 8 Sep 2010