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Thread: Value of properties sold through auctions plumbs 10-year low

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    Default Value of properties sold through auctions plumbs 10-year low

    http://www.businesstimes.com.sg/sub/...10629,00.html?

    December 18, 2008, 4.47 pm (Singapore time)

    Value of properties sold through auctions plumbs 10-year low

    By KALPANA RASHIWALA


    The Singapore property auction market witnessed a 10-year low in the total value of properties sold in year 2008. Only S$83.67 million worth of properties were sold via auction this year, according to figures from Colliers International.

    'Not only does this represent an approximate 79 per cent decline from the total sale value of S$407.43 million registered in 2007, it is also 38 per cent lower than S$135.7 million recorded during the last financial crisis in 1998,' Colliers said in a news release on Thursday.

    All property sectors experienced a decline in their total sales value at auctions in 2008, with the residential sector registering the biggest drop of 88 per cent to $25.23 million from $202.36 million in 2007.

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    http://www.businesstimes.com.sg/sub/...16740,00.html?

    Published December 19, 2008

    Property auctions of $83.7m at 11-year low

    By KALPANA RASHIWALA


    WITH the last two property auctions for the year concluded this week, the final tally of the value of properties sold at auctions in 2008 is $83.7 million - the lowest in 11 years, according to Colliers International.

    This year's figure is 79 per cent below last year's number of $407.4 million and 38 per cent less than the $135.7 million plumbed in 1998 during the Asian financial crisis.

    Colliers pointed out that the 2008 auction sales value of $83.7 million was worse than two trough points reached in 2001 and 2004, when auction sale values dropped to $160.5 million and $155.4 million, respectively.

    All property sectors experienced a decline in their total sales value at auctions in 2008, with the residential sector registering the biggest drop of 88 per cent to $25.2 million from $202.4 million in 2007.

    This decline was marked by a plunge in activity in the high-end residential segment in 2008. The year saw just three prime district properties worth a total $4.62 million changing hands at auctions - against 24 properties that sold for $106.1 million at auctions in 2007. In contrast, mass market and mid-tier properties dominated the list of of residential properties sold under the hammer this year.

    Colliers' deputy managing director and auctioneer Grace Ng attributed the drop in auctions sales this year to cautious buying sentiment amid the worsening economic outlook. 'Additionally, sellers are also holding on to their asking price. This resulted in a stalemate between buyers and sellers, contributing to the decline in sales value,' she added.

    She predicts an increase in mortgagee sale properties at auctions next year against the backdrop of worsening economic outlook and expected rise in unemployment.

    This could lead to a potential rise in loan default rates and raise the number of forced sales.

    Rival property consultancy Knight Frank projects an increase in the number of properties offered for auction next year as there could be some investors who bought their properties with the deferred payment scheme and would need to sell their properties quickly as the completion dates draw nearer.


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    http://www.straitstimes.com/Money/St...ry_316244.html

    December 19, 2008 Friday

    Property auction sales at lowest point in 10 years

    By Joyce Teo


    SINGAPORE'S auction market has slumped to its lowest point in more than 10 years in terms of the value of properties sold this year.

    But more mortgagee properties are expected to be sold under the hammer next year in the light of the weaker economy.

    Only $83.67 million worth of properties have been sold via auction this year, down a whopping 79 per cent from last year, when $407.43 million worth of properties were sold.

    This year's total is also 38 per cent lower than the $135.7 million recorded during the Asian financial crisis in 1998, said consultancy Colliers International.

    This year, 68 properties were sold at auctions, well down from 204 properties last year, said consultancy Knight Frank.

    The worst performance was in the current fourth quarter, when only 5 per cent of the properties offered at auctions were sold, compared with more than 10 per cent in each quarter last year, it said.

    The residential sector was the hardest hit, with sale values plummeting by 88 per cent to just $25.23 million this year, said Colliers International.

    Despite the turbulent times, only 270 properties were put up for mortgagee sale during the year, down 58 per cent from 646 properties last year. This is the lowest number seen in 10 years, it said.

    Distressed sales, often associated with past economic recessions that led to home foreclosures, have yet to emerge in significant numbers, which explains low auction sales, said Knight Frank.

    Since this is seen as the start of a major economic crisis, the number of affected home owners is not significant, it said. But next year, mortgagee sales will rise, said property consultants who foresee loan defaults and forced sales.

    Tight credit is likely to mean that when banks are faced with falling property values and growing non-performing property loans, real estate foreclosures could increase, said Knight Frank.

    Also, some investors who had bought properties under the deferred payment scheme might need to sell their properties quickly as the completion date draws nearer, it said.

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