Value of non-residential properties more than tripled in Singapore

The value of non-residential properties here has more than tripled this year.

Property consultancy Jones Lang LaSalle’s auction house said on Thursday that the quantum of non-residential properties has jumped from last year’s S$26.9 million to S$101.18 million to date.

It said the rise is due to investors being attracted to the higher rental yield from non-residential property, compared with an investment in residential property.

The actual number of mortgagee sales dropped from 232 in 2008 to just 216 this year. Total number of properties put up for auction has also decreased from last year’s 803 to the current figure of 729.

119 properties were sold at auctions this year, with the value amounting to S$167.3 million. This compares to just 68 properties sold last year, which carried a total value of S$69.8 million.

Jones Lang LaSalle expects to see more owner sales being put to auction next year. It is predicting a rise as it feels owners will be attracted by the competitive nature of the auction environment and the high chance of attaining an optimum price for their property.

Source : Channel NewsAsia – 17 Dec 2009

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