The property market overall has been muted in this quarter but the auction scene has thrived, according to consultancy JLL.
It noted that real estate worth $21.2 million has been sold under the hammer, up 42.8 per cent from the second quarter.
The total sales value was also up by "an impressive 120 per cent" from the first quarter's $9.6 million, added JLL, which said the "uptrend brings the total to $45.6 million (to date) as we enter the last quarter of 2016".
Auction sales in the three months to September include two commercial units in Holland Road Shopping Centre that went for $2.7 million and $1.64 million, and a home at 105 Dunbar Walk that sold for $4.78 million.
A total of 14 units were sold in this quarter, JLL noted in a report, compared with six each in the previous two quarters, but there has been a lack of big-ticket items.
"The third quarter also showed a fairly even mix of successfully auctioned property types as well as owner profiles. Preceding quarters typically saw more residential non-landed units and mortgagee sale listings being auctioned off," the report said.
'PREFERRED MODE OF SALE'
With the uncertain economic outlook and current buyer's market, the auction will likely become a preferred mode of sale for owners where a definite timeline is set for decision with no cooling-off period.
MS MOK SZE SZE, JLL auction and sales head
Homes "dominated the auction floor", where seven were sold with a total sales value of about $11.8 million. There were five industrial properties shifted, totalling about $4.8 million in sales, and two commercial units for about $4.3 million.
The properties this quarter came from mortgagee and owner sale listings except for the Dunbar Walk property, which was sold by a trustee.
However, the total sales value of $21.2 million for the quarter is down 114.2 per cent from the same period last year, when 12 homes were sold.
The report said the third quarter last year had been boosted by several big-ticket items, such as the MCST (management corporation strata title) sale of 3 Branksome Road at $16.3 million and two shophouses for $6.4 million and $6.5 million.
JLL auction and sales head Mok Sze Sze said: "With the uncertain economic outlook and current buyers' market, the auction will likely become a preferred mode of sale for owners where a definite timeline is set for decision with no cooling-off period. In addition, we anticipate that there will be an increase in mortgagee sales of between 10 and 20 per cent next year."