Auctions are becoming the preferred method of asset disposal for some of Singapore's high-end property owners, according to data from JLL.

Research from the global real estate firm showed one in every four auction listings for the first 10 months of 2018 was for properties worth SGD 5 million and above.

Previous high-value owner auction deals included the sale of Good Class Bungalows (GCBs) at Chestnut Drive for SGD 11.4 million in 2017,  Chee Hoon Avenue for SGD 22.9 million in 2013 and one within the White House Park area for SGD 13.6 million in 2010. These were sealed at 13-26 per cent above their respective opening bids.

JLL's Terry Poon said this year's trend was helping to break down the stigma of auctions in Singapore.

"Mention property auctions and most Singaporeans would think of foreclosed properties whose owners can no longer pay the mortgage," he said.

"In contrast to this, listings by owners (non-foreclosure properties) contributed the bulk, or above 70 per cent of all auction listings annually between the same time period, reaching a high of 90 per cent in 2013.

"It is hoped that as the negative light of auction properties begin to dim, more buyers will turn to it as a possible mean of acquiring assets in Singapore."

Singapore's developers and landowners have also used auction as a mode of sale across the past couple years.

Two seafront bungalows at Wak Hassan Drive were also put up for auction by their developer in 2017 with opening bid prices of above SGD 5 million each, while earlier this year,  the developer of Victory Ville listed three of their eight semi-detached houses at opening bid prices of SGD 2.4 million and above each.

Mr Poon said auctions represented "a speedy and transparent mode of acquisition".

Source: JLL

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