reporter2
18-10-22, 15:46
Strong interest in auction properties in Q3 prior to Sep 30 cooling measures: SRI
Oct 12, 2022
THREE properties went for a total of S$7.6 million at the latest auction held by Singapore Realtors Inc (SRI) on Sep 30, which coincided with the implementation of recent cooling measures.
Including the three sold at SRI’s Sep 30 auction, a total of nine properties came under the hammer for the third quarter of 2022 – amounting to a sales value of S$18.9 million and bringing the total number of properties sold in the year to date (YTD) to 31 versus 26 per cent last year, up 19.2 per cent.
The total value of successful auction sales for YTD 2022 stands at about S$70.2 million.
In a statement on Tuesday (Oct 11), SRI Auction’s managing partner Mok Sze Sze noted strong bidding participation for two units in particular, with both receiving almost 50 cumulative bids. One was a retail unit located at 685 Hougang Street 61 that went under a receiver’s sale and sold for S$3.43 million, and the other was a house at 50 Pasir Ris Avenue that went for S$3.6 million.
Mok said this came “despite such a sudden implementation” of the latest set of measures, which were announced to increase the interest rate floor used to compute the total debt servicing ratio (TDSR) and the Mortgage Servicing Ratio (MSR).
Residential properties comprised the bulk of YTD transactions and stood at 64.5 per cent of total value sold.
The highest quantum sold in the year to date was for an intermediate townhouse at 8 Nassim Hill, transacted at S$9.79 million.
Out of Q3 2022 auction sales, Edmund Tie transacted two mortgagee sales at 25 Kerong Lane, a landed house that sold for S$2.4 million, and Icon@Changi, a retail unit that went under the hammer for S$254,000.
The agency said another property at Ocean Drive was supposed to be put up for auction during Q3, but “caught the eyes of keen buyers” and was sold pre-auction via private treaty for some S$18.3 million.
Joy Tan, head of auction sales at Edmund Tie, expects to see more mortgagee sale activity in FY2023 as borrowers may “feel the strain” of their increased monthly mortgages amid rising interest rates, particularly in the second half of the year.
“This is especially so for private property owners, as they now have a longer 15-month wait-out period before they can purchase a HDB flat should there be tension on their financial situation due to the latest round of measures announced Sep 30,” said Tan.
“Pressure might also be felt on the industrial and commercial fronts, as GST (goods and services tax) rates are set to rise to 8 per cent from Jan 1 ,2023, affecting those GST-registered, company-owned properties.”
In Tan’s view, auctions are becoming a “choice disposal mode” for property owners due to their transparency in the entire sales process.
“With a differentiated marketing mode, owners will be able to reach out to a wider target market without compromising their desired price and conditions. What’s more, auctioneers will always have owners’ instructions on their reserve price, and the condition of sales are non-negotiable; and more importantly, buyers at auctions typically already have their fundings in place,” she added.
https://www.businesstimes.com.sg/real-estate/strong-interest-in-auction-properties-in-q3-prior-to-sep-30-cooling-measures-sri
Oct 12, 2022
THREE properties went for a total of S$7.6 million at the latest auction held by Singapore Realtors Inc (SRI) on Sep 30, which coincided with the implementation of recent cooling measures.
Including the three sold at SRI’s Sep 30 auction, a total of nine properties came under the hammer for the third quarter of 2022 – amounting to a sales value of S$18.9 million and bringing the total number of properties sold in the year to date (YTD) to 31 versus 26 per cent last year, up 19.2 per cent.
The total value of successful auction sales for YTD 2022 stands at about S$70.2 million.
In a statement on Tuesday (Oct 11), SRI Auction’s managing partner Mok Sze Sze noted strong bidding participation for two units in particular, with both receiving almost 50 cumulative bids. One was a retail unit located at 685 Hougang Street 61 that went under a receiver’s sale and sold for S$3.43 million, and the other was a house at 50 Pasir Ris Avenue that went for S$3.6 million.
Mok said this came “despite such a sudden implementation” of the latest set of measures, which were announced to increase the interest rate floor used to compute the total debt servicing ratio (TDSR) and the Mortgage Servicing Ratio (MSR).
Residential properties comprised the bulk of YTD transactions and stood at 64.5 per cent of total value sold.
The highest quantum sold in the year to date was for an intermediate townhouse at 8 Nassim Hill, transacted at S$9.79 million.
Out of Q3 2022 auction sales, Edmund Tie transacted two mortgagee sales at 25 Kerong Lane, a landed house that sold for S$2.4 million, and Icon@Changi, a retail unit that went under the hammer for S$254,000.
The agency said another property at Ocean Drive was supposed to be put up for auction during Q3, but “caught the eyes of keen buyers” and was sold pre-auction via private treaty for some S$18.3 million.
Joy Tan, head of auction sales at Edmund Tie, expects to see more mortgagee sale activity in FY2023 as borrowers may “feel the strain” of their increased monthly mortgages amid rising interest rates, particularly in the second half of the year.
“This is especially so for private property owners, as they now have a longer 15-month wait-out period before they can purchase a HDB flat should there be tension on their financial situation due to the latest round of measures announced Sep 30,” said Tan.
“Pressure might also be felt on the industrial and commercial fronts, as GST (goods and services tax) rates are set to rise to 8 per cent from Jan 1 ,2023, affecting those GST-registered, company-owned properties.”
In Tan’s view, auctions are becoming a “choice disposal mode” for property owners due to their transparency in the entire sales process.
“With a differentiated marketing mode, owners will be able to reach out to a wider target market without compromising their desired price and conditions. What’s more, auctioneers will always have owners’ instructions on their reserve price, and the condition of sales are non-negotiable; and more importantly, buyers at auctions typically already have their fundings in place,” she added.
https://www.businesstimes.com.sg/real-estate/strong-interest-in-auction-properties-in-q3-prior-to-sep-30-cooling-measures-sri