Market conditions cited for sale of only 10 out of 131 properties offered.
OF the 131 properties put up for sale by auction during this year’s Hungry Ghost month, just 10 were sold - for a total value of $9.56 million - new data from property firm Colliers International shows.
This figure is one of the lowest seen in the past 10 years. The Hungry Ghost month was from Aug 13 to Sept 10 this year.
Colliers attributed the low sales volume to the current property market condition, factors affecting the world economy and new government policies - rather than buyers holding back their purchases during the Hungry Ghost month.
‘Given the good property market performance, many sellers have raised their expectations and upped their asking price; this is especially so for properties with en bloc potential,’ said Grace Ng, Colliers’ auctioneer. ‘This, coupled with the newly announced rules governing en bloc sales as well as the stockmarket turmoil amidst the US sub-prime woes, has caused a slowdown in the market as buyers took a cautious stand.’
Just three residential properties were sold during the Hungry Ghost month this year, generating a total sale value of $4.07 million - a far cry from last year’s $108.41 million, which was mainly contributed by the sales of 12 bungalow parcels in Sentosa Cove.
The number of properties put up for auction during the Hungry Ghost month this year - at 131 - was also a substantial 64 per cent drop compared to last year’s Hungry Ghost month.
Last year, the market saw a total of 359 properties being put up for auction sale as the Hungry Ghost month was spread across two calendar months.
Colliers also said that the total number of repossessed properties seen at auction sale during the Hungry Ghost month this year was only 43 - the lowest figure since 1998.
‘This decline is largely due to the buoyant economy and robust property market,’ the firm said. ‘Owners who faced difficulties servicing their loans were able to dispose of their properties in the open market before their bank or financial institution had a chance to repossess their properties.’
However, the auction method continued to be popular with owners for selling their properties during the Hungry Ghost month.
Colliers’ data shows that this year, some 88 properties were put up by owners for auction sale during the period.
This is the second highest number registered in a decade after 2006.
‘The continued high number of owners choosing auction to dispose of their properties indicates that the market is maturing, with an increasing number of property owners becoming less mindful of conventional taboos,’ Ms Ng said.
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