Property auction sales still slow

Eleven properties were put up for sale at an auction held by Knight Frank Singapore last week, of which two were sold even before the event.

The properties that changed hands are a 904 sq ft two-bedroom condominium unit and a retail space along Petir Road. The condo at Cube 8 is currently under construction, with the temporary occupation period (TOP) set for 2014.

On the other hand, the 538 sq ft shop on the first-storey of Maysprings condominium has 81 years left on its lease. The exact sale price was not disclosed but it is believed to be around S$500,000.

Meanwhile, the remaining nine properties, including one landed home, six non-landed residential units, one factory space and one retail unit were left unsold.

Sharon Lee, Director and Head of Auctions at Knight Frank, said that the event was well-attended especially during the Ghost Month, which proves that home buyers are still searching for properties to purchase.

She added that “most sales are expected to continue after the event”, with at least four to five properties expected to be sold.

At the same time, Lee noted that the S$1.15 million price tag for one of the properties on sale – a 753 sq ft freehold residential unit at 19 Shelford Road – is priced below that of other units in nearby projects, adding that buyers are on the lookout for resale units, given their more affordable prices and larger sizes compared to new launches.

She also felt that commercial properties for sale at the auction commanded higher prices and explained that the shorter tenure for 30-year industrial sites would likely draw less interest from industrial property investors with long-term business plans. As such, many of them are drawn to resale homes.

Source : PropertyGuru – 5 Sep 2012

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