Colliers International, Singapore

14 properties with a total sale value of S$25.92 million were sold under the hammer during the Hungry Ghost Festival this year, which falls from August 20 to September 18.

This is the highest sale value recorded in three years and is approximately one-and-a-half times higher than the S$9.56 million registered during the sub-prime crisis in Year 2007.  Sales figure this year has also surpassed last year’s value of S$22.75 million – of which, a significant S$13.81 million was contributed by the successful auction sale of four infill sites by the Singapore Land Authority.

Ms Grace Ng, Deputy Managing Director (Agency and Business Services) of Colliers International, says, “It is encouraging that sale value at auctions has been trending up since March this year – boosted by budding ‘green shoots’ in the economy, improving market sentiments and a buoyant stock market.  We also saw a ready stream of buyers and investors at auctions even during the Hungry Ghost Festival, which is traditionally a lull period for the property market.”

A total of 85 properties were put up for auction sale during the Hungry Ghost Festival, of which 66 (78%) were by property owners.  The remaining 19 properties (22%) were mortgagee sale, which is the lowest figure in 12 years.

The low number of mortgagee sale could be attributed to the sanguine market, in which owners who are in default might now find it easier to sell their properties in the open market.  Additionally, banks and financial institutions are also managing their non-performing loans by giving owners the opportunity to dispose their properties within a defined time period.

Highlights: 

High number of residential properties being put up for auction sale by owners 
A total of 35 residential properties were put up for auction sale during the Hungry Ghost Festival – of which, 26 were owners’ sale.

Ms Ng comments, “The high number seen for owners’ sale implies that vendors nowadays are more influenced by market conditions when it comes to timing the sale of their property, instead of being restricted by cultural taboos.”

Residential sector contributes the largest share in the total sale value
Mirroring the trend in the general property market which experienced buoyant sales at residential launches, the auction market similarly chalked up S$18.98 million worth of sales from the residential sector.  Not only is this almost two-third of the total sale value, it is also the highest value registered for residential sale during Hungry Ghost Festival in the last three years.

Ms Ng explains, “A total of nine residential properties were sold and the high sale value is attributed to the sale of several high-end apartments and landed properties.”

Two high-end condominiums at Four Seasons Park (off Orchard Boulevard) were sold at S$4.80 million and S$4.84 million, respectively.  Another penthouse at The Waterside (East Coast) was sold at S$2.55 million.  Meanwhile, a semi-detached house at Sunbird Circle (Bedok) was sold for S$1.98 million and another detached house at Northshore (Punggol) was sold for S$1.87 million.

Strong interest also seen for retail properties
Retail is the next best-performing sector – in which buyers continue to seek investment-grade properties.  Sales of shophouses and strata-titled shops totaled S$6.83 million during the period.

Two shophouses at Tanjong Pagar and Brighton Crescent (Serangoon) were sold for S$2.48 million and S$1.30 million, respectively.  Another shop unit at Sim Lim Square was sold for S$2.95 million.

Ms Ng concludes, “Going forward, we foresee that the residential sector will continue to be the most active sector as home buyers and investors seek out purchases of condominiums and landed homes at auctions.

The recent withdrawal of the interest absorption scheme and interest-only housing loan has minimal impact as these schemes are not applicable to the secondary market.  However, it is expected that sales will taper off in the last two months due to year-end school holidays and festivities.”

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 12,700 employees span the world in 294 offices in 61 countries. On a worldwide basis, Colliers manages 1.1 billion square feet, and has revenue of $US 1.6 billion.

Contact Information

Ms Seah Li Ching
Assistant Manager, Marketing & Communications
Tel: 65 6223 2323
Direct: 65 6531 8545

Ms Grace Ng
Deputy Managing Director (Agency and Business Services)
Tel: 65 6223 2323
Direct: 65 6531 8500

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