In fact, auctions are a way to sell real estate with a transparent buying and selling process and no backroom deals.
From the buyer's point of view, through the auction may be able to find the house of choice, while the seller will be relatively open and transparent way to sell a reasonable price.
According to the latest data released by Dai Yuxiang Industrial Consulting on December 21, in 2022, a total of 459 real estate units were sought for sale through auctions, with a total of 39 units sold. Although this is an increase from the number of units sold in 2021 (32), the total sales amount decreased significantly by more than 20% (22.3%) to S$88.93 million.
The 32 units sold at auction in 2021 had a total sales amount of S$114.42 million.
However, the director of auction and sales of Dai Yuxiang Industrial, Tan Zi Ping, commented on this, saying that in 2022, the situation remains good for the real estate auction market.
Tan Zhibing explained that the reason for the decrease in total sales is that there are fewer high priced transactions of S$5 million or more.
In addition, most of these high-priced transactions are concentrated between S$7 million and S$10 million in 2021 and between S$5 million and S$8 million in 2022.
Another reason, she added, is that the amount of transactions agreed privately is not counted in the total auction sales.
For example, the auction and sales team at DYC Property Consultants sold a S$22 million Joo Chiat Road lot in May and a S$18.3 million waterfront detached house in August, both of which were high-priced deals reached before the auction.
The 39 real estate units sold at auction in 2022 included 20 residential units, six industrial units, 10 commercial units and the rest were shophouses and land.
Notable residential deals included a townhouse unit at 8 Nassim Hill, which sold for S$9.79 million in February, and a semi-detached townhouse at Nim Green, which sold for S$6.33 million in April, $500,000 more than the starting price.
For commercial properties, a medical unit at Mount Elizabeth Medical Centre was auctioned in May for S$8.44 million.
Dai Yuxiang Industrial Consulting said in a statement that of the 459 real estate units up for sale at auction this year, 267 units were consigned by homeowners, accounting for 58 percent, while another 158 were mortgaged to force a sale, accounting for 34 percent.
Chen Ziping said that because of the good residential sales this year, there is a decrease in the seizure for sale.
Chan also mentioned that the percentage of real estate consigned to auction by homeowners increased to 58.2 percent in 2022, the highest in seven years.
This shows a gradual acceptance of auctions as a way to sell assets in one's name.
In an active market environment, the auction may give them the best price.
Many real estate investors are choosing to sell their assets at auction to restructure their portfolios at a time when the real estate market is in good shape.
