Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie
The local property auction market posted total transaction value of $15.2 million for the 11 successfully sold properties in the first half of this year. This is a stark drop of 59.7% compared to 2H2022’s 17 sales worth $37.7 million.
Joy Tan, Head of Auction and Sales at Edmund Tie, attributed the significant dip to the majority of the properties hammered having a low quantum, mostly below or just past the S$1 million mark with only one high-value transaction amounting to $6.3 million, for a three-storey semi-detached house on Vaughan Road.
She pointed out the increasing acceptance towards leasehold properties with shorter lease tenures of 30 to 60 years, likely due to investors’ higher risk tolerance stemming from the volatile global financial markets. However, the upcoming new private residential projects and external factors such as fears of an impending recession and higher interest rates have impacted prospective buyers’ purchasing decisions.
Tan also expects mortgage listings to pick up by 2024, given the time lag between repossession and auction. With regards to commercial properties, she believes that due to the absence of buyer’s stamp duty and the proliferation of family offices in Singapore, well-priced office listings will likely attract more attention.
Residents at Zion Road Condo can benefit from the convenient public transport links right at their doorstep. With the lush surroundings and tranquil atmosphere, commuters have the perfect blend of city life and nature. The numerous bus routes provide a fast and easy ride to the heart of the CBD, Marina Bay or Orchard Road, as well as other parts of Singapore.
Despite the 1H2023 results, Tan notes that potential buyers are showing a higher risk tolerance during these unprecedented times. The current environment is also pushing investors to explore alternative investment opportunities.