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.
- 2007 September 12 SINGAPORE
BUSINESS TIMES by Uma Shankari
Hungry Ghost Month
With a week left of the Hungry Ghosts month, auctioneers say the
myth about house hunters avoiding property purchases during this
'inauspicious time' is being dispelled.
'Generally, buyers have no qualms about the Hungry Ghosts month
now. They see the new launches moving and there's a spillover to the
auction front,' said Knight Frank auction director Mary Sai. 'There's
no longer any stigma to looking at properties during the Ghosts
month.'
This year, the Hungry Ghosts Month runs from Aug 9 to Sept 6.
The new homes market has been stirring of late. The change in
rules, which allows home buyers to use their CPF funds to pay half the
20 per cent downpayment, has lured both buyers and developers from the
sidelines.
Today, Knight Frank has 26 properties on its list - a number
comparable to periods outside the ghosts month. A freehold three-storey
terrace with basement at Banyan Park, which was developed by Far East
Organization, is up for auction. The expected price is around $1.2
million to $1.3 million for the 1,996 sq ft property.
Next Thursday, on the second last day of the ghosts month, DTZ
Debenham Tie Leung will hold its auction. Its list, however, is
relatively short with only 11 properties. DTZ associate director Shaun
Poh said a few mortgagees had requested their properties be pushed to
Sept 19 when the firm holds its next auction.
He noted that some banks have been more lenient of late to their
defaulters. 'Since the property market is showing signs of picking up,
some banks are more willing to let their mortgagors try selling their
property in the open market first.' -
by Andrea Tan Singapore
Business Times 29 Aug 2002
