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 resulted from “the real estates hammered being of reduced quantum, mainly possibly beneath or simply past the S$ 1 million mark. There was sole high-value deal that was above S$ 5 million”.

” Additionally, on the back of the high interest rates, the air-cooling actions declared in April and the general uncertain macro setting, customers have usually adopted a wait-and-see stance,” says Tan.

The “high-value deal” was for a three-storey semi-detached house on Vaughan Street that was settled for $6.3 million. Additionally, 7 of the profitable properties sold at marketplace were industrial properties, with the balance being three residential properties and even an office real estate.

Looking in advance, she anticipates to see property loan listings pick up only in 2024, provided the time lag in between financial institutions retrieving residential properties and also putting them up for auction. She even anticipates commercial listings to gather more acquiring attraction. “Given that business purchases are going to not sustain additional buyer’s stamp duty and with the boost in family offices in Singapore, well-priced office listings will also likely be extremely sought after,” she says.

This was the lowest sales market value documented by the auction sale market ever since 1H2020, the beginning of the Covid-19 pandemic, when only one real estate was yielded $0.94 million. It is also a major drop of 59.7% matched up to 2H2022 which logged 17 sales worth $37.7 million.

Cognisant of the upcoming brand-new nonpublic non commercial jobs set to hit the marketplace over the next several quarters, prospective buyers are keeping back on their purchases, says Tan, including that external factors such as concerns of an impending recession also higher rate of interest are even influencing sales.

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She incorporates that within the past couple of months, capitalists are presenting a growing acceptance towards leasehold buildings with much shorter remaining lease periods of usually 30 to 60 years. “This is likely because of capitalists’ greater possibility resistance, as financial markets remain volatile, and a noticeable preference change to substitute financial investment possibilities.”

The nearby real property auction market successfully sold 11 properties over the initial six months of this year. An analysis note released by Edmund Tie states that the total deal price for the properly auctioned properties was $15.2 million.

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