Property auction market slumps in Q2

The property auction market in Singapore slowed to a crawl in the second quarter, with both sales volume and value transacted falling sharply from the previous three months, real estate consultancy Colliers International said on Friday.

Only four properties worth a total of S$7.05 million were sold via auction in the April-to-June period, down 91.6 per cent from the S$83.44 million recorded in the January-to-March period, Colliers said. The four deals comprise a two-storey terrace house at Woo Mon Chew Road sold at a price of S$2.85 million; an HDB shophouse in Toa Payoh at S$2.568 million; an apartment in Novena Court at S$1.2 million; and a shop in High Street Centre at S$430,000.

Ms Grace Ng, Deputy Managing Director of Colliers International, said: “The subdued property auction market in the second quarter is a clearer reflection of the impact of the continuous Government curbs in the residential sector, with the last wave of cooling measures implemented in January.”

“Performance in the secondary market became lacklustre during the quarter, when buying demand was diverted to the primary sales market. Buyers were attracted to various sweeteners offered by developers to cushion the impact of the Additional Buyer’s Stamp Duty (ABSD),” she added.

The persistent stalemate between buyers and sellers also led to fewer deals being closed.

Ms Ng said, “While owners are holding on to their property, waiting for an offer that meets their price expectation, home buyers who now have to fork out larger cash outlay – due to the increase in ABSD, higher cash down payment and lower loan-to-value ratios – may take a more discretionary view of home buying.”

“Coupled with the threat of a possible increase in interest rates, some buyers have also adopted a wait-and-see attitude in anticipation of a possible price fall,” she added.

Source : Today – 28 June 2013

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