The real estate consultancy also noted that the local property market rebounded in the third quarter of this year on stronger residential sales.
SINGAPORE: The local property auction market rebounded in the third quarter of 2014 on stronger residential sales, according to a report by real estate consultancy Jones Lang LaSalle (JLL), released on Thursday (Sep 25).
It said nine properties were successfully auctioned in the July-September period. While this is similar to the previous quarter, the sales value was significantly higher.
JLL said in the report that the nine deals in the third quarter were valued at S$30.46 million, compared to the S$9.28 million in the previous three months. Of the nine properties sold in the third quarter of this year, five were residential properties.
The consultancy said the resurgence in auction sales is partially attributable to the exponential growth in mortgagee sales that offer quality assets at attractive pricing.
"SPIKE" IN MORTGAGEE SALES
The report noted "a spike in number of mortgagee sales". Based on JLL's basket of auction sales, the cumulative count of properties put up for auction was 104 in the first eight months of 2014. This is over 25 per cent of all listings, and JLL said it represents the highest number of mortgage sales listed in five years since 2010. This is compared to 2013, there were 30 mortgage sales, which accounted for 6 percent of all listings.
"As the auction market is expected to register an ongoing stream of mortgagee sales supply, we are anticipating further improvement in auction sales quantum for the coming quarter. However, the year-end holiday season is predicted to moderately soften the investment activity in December," said head of Auction and Sales at JLL Mok Sze Sze.
Also, given the landmark quarter of auction transactions in 1Q13, which witnessed total sales of S$83.5 million, it is unlikely that total auction sales in 2014 will surpass that of 2013. Nevertheless, the foreseeable increase in mortgagee sales will continue to support the auction market," she added.
The consultancy also noted that this year, 80 per cent of the 44 properties put on auction were successfully hammered upon their first appearance, with the remaining 20 per cent sold when the assets were relisted.
Examples of properties sold in the third quarter of 2014 on their first listing included an apartment unit in Orchard Scotts and a unit in Ocean Park.
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