Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie

According to Joy Tan, head of auction and sales at Edmund Tie, the small sales value in 1H2023 was due to “the properties hammered being of reduced quantum, primarily possibly below or just past the S$ 1 million mark. There was only one high-value purchase that was above S$ 5 million”.

This was the most affordable sales price reported by the auction market ever since 1H2020, the beginning of the Covid-19 pandemic, when only one real estate was sold for $0.94 million. It is in addition a substantial drop of 59.7% matched up to 2H2022 which reported 17 sales cost $37.7 million.

She includes that over the past couple of months, investors are presenting an expanding acceptance towards leasehold real estates with much shorter standing lease tenures of commonly 30 to 60 years. “This is likely because of capitalists’ higher risk resistance, as financial markets stay volatile, and a visible choice shift to another financial investment possibilities.”

Looking in advance, she expects to see home loan listings pick up only in 2024, presented the time lag between financial institutions reclaiming residential properties and also placing them up for auction. She even expects commercial listings to amass more buying rate of interest. “Considered that business deals will not incur added customer’s stamp obligation and also with the increase in family workplaces in Singapore, well-priced office listings will also likely be highly searched for,” she states.

Cognisant of the upcoming new private residential jobs set to reach the marketplace over the next several quarters, probable buyers are holding off on their purchases, says Tan, including that exterior factors such as fears of an upcoming economic downturn and higher rate of interest are also influencing sales.

The regional real property auction marketplace efficiently marketed 11 real estates over the very first six months of this year. An analysis note released by Edmund Tie specifies that the total deal price for the successfully auctioned real estates was $15.2 million.

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” Furthermore, on the back of the high interest rates, the air-cooling steps publicized in April plus the overall unconfirmed macro setting, buyers have normally followed a wait-and-see stance,” claims Tan.

The “high-value transaction” was for a three-storey semi-detached residence on Vaughan Street that was transacted for $6.3 million. In addition, 7 of the successful real estates sold at sell-off were industrialized residential properties, with the rest being 3 properties and even a workplace property.

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