Singapore Business Review
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
29 March 13
S$76 million sale value a "heartening turnaround".
According to Colliers, the Singapore property auction market got off to a strong debut in 2013, garnering a total sale value of S$76.08 million in 1Q 2013 alone.
"This is despite the lull in the secondary market – a result of the recent series of government cooling measures implemented in the residential sector. The sale value signifies a heartening turnaround from last year, which exceeds the S$62.44 million chalked up in the entire year of 2012 by 21.8 per cent," said Colliers.
Colliers said the improved performance in 1Q 2013 was due to the sale of four high-value properties, which generated a total sale value of S$70.1 million. This contributed to a whopping 92.1 per cent of the total sale value in 1Q 2013.
Ms Grace Ng, Deputy Managing Director at Colliers International, says, “Properties such as the the Good Class Bungalow (GCB)at 8 Chee Hoon Avenue (off Dunearn Road) and the JTC factory at 39 Benoi Road (Jurong) are highly sought after, as they are rarely made available for sale due to their scarcity.
For instance, the GCB at Chee Hoon Avenue, which is located close to Botanic Gardens MRT station, is very popular with both investors and end users, while the JTC factory at Benoi Road, which has a large land area of more than 300,000 sq ft and is located near Joo Koon MRT station, strongly appeals to end users.”
The renewed interest seen in the auction market could be attributed to the continued government curbs in the residential sector, which has diverted buying interest to the non-residential sectors.
Ms Ng continues, “In particular, shophouses are a main draw to investors, as such property types are not affected by the punitive measures, such as the Additional Buyer’s Stamp Duty or Seller’s Stamp Duty, among others. Additionally, given that shophouses typically generate yields in the region of 2-4 per cent per annum, investors who are on the lookout for alternative investments to bank deposits which offer an average paltry interest rate of less than 1 per cent per annum, would find shophouses a more appealing proposition.”
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)