Eleven units with a total sales value of $20 million went under the hammer in 1Q2018 (see Table 1). This is a 31.2% y-o-y increase over the $15.23 million in 1Q2017, when eight properties were sold, according to Edmund Tie & Company (ET&Co). The increase is due to positive market sentiment and resulting strong demand, says Joy Tan, ET&Co head of auction and sales.
“This marks a strong start to the auction market in 2018, continuing the upward trend seen over the last two years,” comments Tan. Mortgagee sales continue to be the most popular among bidders, making up 67% ($13.42 million) of total sales value, while owner sales and a rare public trustee’s sale contributed 22% ($4.32 million) and 11% ($2.23 million) respectively.
Older properties completed before 2000 have been attracting more interest in the past half-year from investors looking to ride the en bloc fever, notes Tan. “We often receive queries about the en bloc potential of a development during the marketing period of the units,” Tan says. Properties completed before 2000 made up 60% (six of 10) of non-landed auction sales in 1Q2018 (see Table 2).
A duplex, four-bedroom penthouse of 2,939 sq ft at the Berth by The Cove went under the hammer for $3.25 million in end-Feb (Credit: ET&Co)
Tan reckons that auction sales are expected to increase further this year, as en bloc beneficiaries who receive their payouts look for replacement units in the market.
Table 1 Auction sales in 1Q2018*
Source: ET&Co
* Private treaty sales and units sold before or after the auction are not included in the list
Table 2 Auction sales involving properties completed before 2000, 1Q2018
Source: ET&Co
# Mixed-use development