A report released by Edmund Tie & Co on 29 March revealed that the auction market wis heating up on the heels of the the en bloc fever. While the number of new properties put up for sale has remained unchanged year-on-year (y-o-y) at 63 units in Q1 2018, the number of properties sold rose to 11 units in Q1 2018 from eight in Q1 2017.
The total value of properties sold at the auction market was $19.97m, 31.2 per cent higher from $15.23m in Q1 2017 and $9.62m in Q1 2016.
The increased activity in the auction market reflects the positive sentiments and strong demand in the market.
The units sold via auction in Q1 2018 are as follows. Private treaty sales and units transacted before or after the auction are not included in the list.
| Property | Auctioned amount | Property type | Seller profile |
| The Berth by the Cove, #06-18 214 Cove Drive (D04) |
$3,250,000 | Residential | Mortgagee |
| Harbour View Towers, #22-02 21 Telok Blangah Dr (D04) |
$1,080,000 | Residential | Mortgagee |
| Spring Grove, #03-02 53A Grange Road (D10) |
$2,500,000 | Residential | Mortgagee |
| The Ebony, #02-05 35 Lorong Merican (D14) |
$510,000 | Residential | Mortgagee |
| The Sensoria, #02-01 1 Jalan Ulu Sembawang (D27) |
$1,050,000 | Residential | Mortgagee |
| Orchid Park Condominium, #03-06 95 Yishun Street 81 (D27) |
$620,000 | Residential | Mortgagee |
| International Plaza, #26-11 10 Anson Road (D02) |
$1,710,000 | Commercial | Mortgagee |
| 683 Hougang Avenue 8, #01-919 (D19) | $2,700,000 | Commercial | Mortgagee |
| Leighwoods, #04-01 37 Mount Sinai Rise (D10) |
$2,900,000 | Residential | Owner |
| The Summit, #04-07 461 Upper East Coast Road (D16) |
$1,420,000 | Residential | Owner |
| 17 Jalan Batai (D20) | $2,230,000 | Residential | Public Trustee |
In line with previous trends, mortgagee sales were still the most popular among bidders, with eight units sold, totaling $13.42m. Owner’s sale and a public trustee’s sale at 17 Jalan Batai contributed $4.32m and $2.23m, respectively.
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Eight non-landed residential units and one landed unit totaling $15.56m were sold. It is interesting to note that the transactions were distributed evenly between core and non-core regions, whereas in the past, it was more likely for the non-core regions to achieve a higher number of sales due to their affordability. Only two commercial units with a sales value of $4.41m were sold during this period.
Head of Auction & Sales at Edmund Tie & Co, Joy Tan, commented, “In the last six months, we noticed that older developments completed before the year 2000 are attracting more interest, with some investors looking to ride the en bloc wave. During the marketing period of the units, we often receive queries about the en bloc potential of the development.”
As seen in the following table, six out of the 11 units sold this quarter were completed before the year 2000. This might suggest that investors are still on the lookout for such properties.
| Property | Property type | Year of completion | Tenure |
| International Plaza, #26-11 10 Anson Road (D02) |
Mixed development | 1976 | 99 years wef 1970 |
| Harbour View Towers, #22-02 21 Telok Blangah Dr (D04) |
Residential | 1994 | 99 years wef 1990 |
| Spring Grove, #03-02 53A Grange Road (D10) |
Residential | 1996 | 99 years wef 1991 |
| Leighwoods, #04-01 37 Mount Sinai Rise (D10) |
Residential | 1985 | Freehold |
| The Summit, #04-07 461 Upper East Coast Road (D16) |
Residential | 1991 | Freehold |
| Orchid Park Condominium, #03-06
95 Yishun Street 81 (D27) |
Residential | 1994 | 99 years wef 1991 |
“It is positive to see a strong start to the auction market in 2018, with an upward trend seen over the last two years. This may be due to pent-up demand from buyers, who have been waiting on the sidelines for news on changes to stamp duty.
“However, Parliament surprised the market this quarter by announcing the increase in the Buyer’s Stamp Duty (BSD) on 19 February. Instead of being deterred, it appears both local and foreign buyers are returning to seek out good deals from the auction market.
“We expect a steady increase in sales throughout this year, especially as owners who are cashing out on their successful en bloc sales begin to search for replacement units for occupation or investment,” added Joy.
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