Q4 auction sales accounted for over half of overall sales in 2016.
The amount is more than three times the $10.83 million sales worth filed in Q4 2015, and more than double the sales worth in Q3 this year.The sales of these properties reveals “there are sharp buyers in the marketplace on the watch for websites with such possible”.
Several other big quantum residential properties were also sold via auction during the time under review, including non-landed units at Seascape in Orchard and Sentosa Scotts, along with a landed unit at Daffodil Drive in District 20.
JLL noted the quarter found a great mixture of seller profiles and property types.
For the very first time, 10 were recorded of the 11 properties auctioned and sold within two to four weeks of entering the marketplace. This suggests that there are “ready buyers willing to give to great deals in now’s marketplace, despite needing to put down a 10 percent deposit on the spot”, said JLL.
“Being prepared was below what the previous owners had paid to the edge of some buyers, who managed to snag deals.”
With only two weeks left to the end of the year, overall auction sales stands at $92.2 million.Mok Sze Sze, Head of Auctions at JLL Singapore, emphasized a year-on-year rise in the amount of properties sold during auction since 2013, when the Entire Debt Servicing Ratio (TDSR) was introduced.
This indicates that buyers have, over time, come to terms with the measures that are cooling and are willing to invest, as opposed to adopting a wait-and-see approach. Additionally, more trades occurring during auctions additionally exemplifies the assembly of cost expectancy between sellers and buyers. Sales of new launches have been also on the on-the-fence approach where buyers are looking for value buys especially for those developer facing the ABSD pressure like the one at Highline Residences by Keppelland.
Looking forward, JLL anticipates mortgagee sales “to grow by 10 to 20 percent in 2017, considering that Singapore is going through a cyclical slowdown that is protracted, as well as the market is likely to remain next year” that is slow.