Notable real estate auctioned off this year was the of a townhouse at 8 Nassim Hill for $9.79 million

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The total number of properties were sold for sale under the hammer in 2022. That’s the total worth $88.93 million, as per information compiled by Edmund Tie. This is an 22.3% decline y-o-y. In 2021 32 properties were sold at a cost of $114.42 million.

Despite the decline in total value of sale, Joy Tan, Edmund Tie’s director of auctions and sales, explains that the auction market had an “relatively good year”. The lower sale value to less transactions of $5 million or more. “Plus it is true that the majority of high-value transactions that took place in 2021 were within the price range of $7 million to $10 million. In 2022, the majority of transactions were between S$5 and S$8 million,” she adds.

The value of the sale also excludes transactions that were concluded through private treaties. This means that some significant deals do not count in the final figure. “For example that for instance, the Edmund Tie auction & sales team sold a plot of land in Joo Chiat Road for $22 million in May, and an oceanfront detached house on Ocean Drive for $18.3 million in August. Both are highly-valued transactions that were concluded prior to auction,” Tan explains.

The total number of properties were offered to auction by 2022. Of these 267 (58%) were owner listings, and the remaining 158 (34%) were mortgagee listings. The remaining properties included other listings, including sheriff, estate, and MCSST sales.

The number of listings for owners in 2022 was the highest in the past seven years. It’s also the second consecutive year that owner listings have outsold mortgage listings. “Given the record prices for residential properties this year, we saw less distressed sales” Tan observes.

She says that the greater percentage of owner listings point towards a rising amount of owners looking to the auction market in order to dispose of their property. ” We have noticed that many owners-investors are taking advantage of the booming real estate market to dispose of their properties in the course of portfolio restructuring and utilizing auctions to dispose of their properties,” she says.

Residential properties were the largest portion of properties that were auctioned in the auction, with 20 units auctioned for a total amount of $52.71 million. Commercial properties comprised the second most significant segment with 10 units being sold for $13.47 million.

The most notable of these residential sales is the townhouse at 8 Nassim Hill that was sold by auction at $9.79 millions during February. In April there was an semi-detached home at Nim Green was auctioned for $6.33 million which was $500,000 more than the price at which it was initially listed. In addition, commercial transactions included a sheriff’s sale the medical suite of Mount Elizabeth Medical Centre. This unit went under auction off successfully to the tune of $8.44 millions in the month of May.

Looking towards the future, Tan expects more distressed sales in 2023, despite uncertainty in the economy and the rising interest rates. As borrowers begin to be impacted by the burden of higher monthly mortgage payments, she expects increasing numbers of distressed sales particularly during the second quarter this year.

In the same way, Tan views that buyers might also be able to lower their price expectations. “As as a result auction sales are expected to increase only after 2Q2023 in which buyers and sellers alter their expectations of price taking a more precise view of market conditions,” she opines.

She expects the constant flow of listings by owners to continue throughout the new year. “All into, I anticipate an increase in the property auction market to provide various property kinds that accommodate different buyer types in the coming year. With auctions in person returning to full force 2023 is expected to be quite busy to auctions in the Singapore property auctions,” she says.