Property auctions market stabilising in Q4, says JLL
A HIGHER than expected proportion of properties sold at auctions this quarter depicts a stabilisation in the Singapore property market, this is in accordance with the report from property firm Jones Lang LaSalle (JLL).
The auctions market attain a sales rate of 10 per cent in Q4 2011, with seven transactions out of the 71 properties listed, as compared with the 6 per cent sales rate recorded in Q3 2011.
In Q3, asum of seven auction deals were negotiated . Notably, Q3′s data for both auction transactions and percentage of properties sold (asagainst those put up for sale) clocked in their lowest levels since Q1 2009.
The fall in the transactions this quarter was more moderate , registering a 33 per cent year-on-year drop, as compared with a 40 per cent decline in Q4 2010.
JLL noted that Q4 transactions for the past two years have normally showed restrained activity in the auctions market.
‘With buyers possibly holding off major decisions till after the year-end celebrations, the Q4 2011 results showed a similar seasonal trend, with transactions remaining at Q3 2011 levels,’ JLL’s report said.
Mok Sze Sze, head of auctions at Jones Lang LaSalle, said: ‘The property buying market seems deep with a healthy sale rate of 10 per cent this quarter.’
Notwithstanding the imposition of the cooling measures, residential keep on dominating auction sales. Moreover, it is likely that said trend may be controlled in 2012 once the policy will take effect, with a possibility for investors to divert its focus to alternative property sectors in search of higher yields,’ added Ms Mok.
While the residentialelement continues to govern transactions, more and more investors are diversifying to other property sectors that offer greater access to funds through higher loan-to-value ratios and yields, JLL said in its report.
Compared with Q4 2010, the proportion of residential sales decline by approximately 15 percentage points, and accounted for 43 per cent of all transactions.