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City and Country randomly monitors landed residential properties up for auction in the Klang Valley, with a minimum reserve price of RM250,000.
Given the current economic climate, it comes as no surprise to see a rise in property auctions. While more properties go under the hammer, sales have been sluggish overall. Nevertheless, landed homes were more sought after.
Danny Loh, a licensed auctioneer with Property Auction House, says, “We have seen an increase in the number of medium to low-cost landed properties being put up for auction since February this year.” He adds that there has also been a rise in the number of high-end condominiums.
Mohd Ali Abdul Majis, a licensed auctioneer at Ehsan Auctioneers, notes the same trend. According to him, prices of auctioned properties have dropped by an average of 20% in general.
“Some of the worst affected are condos and apartments in areas such as Puchong, Kajang and Cheras, which have seen a steep decline of 40% in their market values. However, prices for landed properties are more stable,” he adds.
Property Auction House’s Loh concurs, saying demand for landed properties is generally stronger as they are harder to come by; hence, prices are still holding.
Another auctioneer, Rajan Govinden, of Rajan Auctioneers, believes it is a good time to buy considering that prices have dipped and there are more options to choose from the higher number of properties put up for auction.
“It’s a buyer’s market now. With prices dropping and more properties on the market, particularly those located in prime locations, such as Bangsar, Sunway, Bukit Tinggi and Klang, buyers have more choices now,” he says.
But does the higher number of properties up for auction translate into increased sales for the auctioneers? Not necessarily.
Kok Seng Ho, a licensed auctioneer at Henry Butcher Asset Auctioneers, reports a 10% to 15% decrease in sales in recent months. The slide started to show after February and he expects the situation to continue in the coming months.
Property Auction House also reported a drop in its sales. Says Loh: “One of the reasons bidders are sitting on the sidelines is the stringent restrictions imposed by the banks, making it difficult for them to obtain financing. It’s up to the banks to review and hopefully ease their loan policy.”
Rajan Auctioneers’ Rajan offers another reason: “Price is the main concern, given the economic uncertainties. Investors are understandably more cautious about their spending, so they are holding back until the fourth or fifth auction to bid as there is a discount of 10% for each subsequent auction of the same property.”
Of the 20 auctions of landed homes monitored, seven were successfully auctioned off, with five sold at their reserved prices. Among them was a leasehold 4,400 sq ft, 2-storey linked bungalow in Sunway Damansara, which was sold at its third auction at the reserve price of RM990,000.
Also snapped up were a leasehold 2-storey corner terraced house, with a land area of 3,989 sq ft in Section U5, Shah Alam (reserve price: RM297,000) and a 2½-storey leasehold, 3,548 sq ft terraced house in Saujana Damansara, Petaling Jaya (reserve price: RM396,000). Both properties were sold at their second outing.
A property sold at its first auction was a 3,035 sq ft, 2-storey leasehold terraced house in Bukit Antarabangsa, Kuala Lumpur, carrying a reserve price of RM275,600.
Less successful was a 2,077 sq ft, leasehold 2-storey terraced house in Sunway Alam Suria, Shah Alam. The property (reserve price: RM287,600) was on the block for the third time and did not attract any bidder. Similarly, a freehold 1,668 sq ft, 3-storey terraced house in Cheras failed to find a buyer at its third auction at the reserve price of RM364,500.
The following are some landed properties that came up for auction from late March till early May 2009.
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 759, June 15 – 21, 2009.
Given the current economic climate, it comes as no surprise to see a rise in property auctions. While more properties go under the hammer, sales have been sluggish overall. Nevertheless, landed homes were more sought after.
Danny Loh, a licensed auctioneer with Property Auction House, says, “We have seen an increase in the number of medium to low-cost landed properties being put up for auction since February this year.” He adds that there has also been a rise in the number of high-end condominiums.
Mohd Ali Abdul Majis, a licensed auctioneer at Ehsan Auctioneers, notes the same trend. According to him, prices of auctioned properties have dropped by an average of 20% in general.
“Some of the worst affected are condos and apartments in areas such as Puchong, Kajang and Cheras, which have seen a steep decline of 40% in their market values. However, prices for landed properties are more stable,” he adds.
Property Auction House’s Loh concurs, saying demand for landed properties is generally stronger as they are harder to come by; hence, prices are still holding.
Another auctioneer, Rajan Govinden, of Rajan Auctioneers, believes it is a good time to buy considering that prices have dipped and there are more options to choose from the higher number of properties put up for auction.
“It’s a buyer’s market now. With prices dropping and more properties on the market, particularly those located in prime locations, such as Bangsar, Sunway, Bukit Tinggi and Klang, buyers have more choices now,” he says.
But does the higher number of properties up for auction translate into increased sales for the auctioneers? Not necessarily.
Kok Seng Ho, a licensed auctioneer at Henry Butcher Asset Auctioneers, reports a 10% to 15% decrease in sales in recent months. The slide started to show after February and he expects the situation to continue in the coming months.
Property Auction House also reported a drop in its sales. Says Loh: “One of the reasons bidders are sitting on the sidelines is the stringent restrictions imposed by the banks, making it difficult for them to obtain financing. It’s up to the banks to review and hopefully ease their loan policy.”
Rajan Auctioneers’ Rajan offers another reason: “Price is the main concern, given the economic uncertainties. Investors are understandably more cautious about their spending, so they are holding back until the fourth or fifth auction to bid as there is a discount of 10% for each subsequent auction of the same property.”
Of the 20 auctions of landed homes monitored, seven were successfully auctioned off, with five sold at their reserved prices. Among them was a leasehold 4,400 sq ft, 2-storey linked bungalow in Sunway Damansara, which was sold at its third auction at the reserve price of RM990,000.
Also snapped up were a leasehold 2-storey corner terraced house, with a land area of 3,989 sq ft in Section U5, Shah Alam (reserve price: RM297,000) and a 2½-storey leasehold, 3,548 sq ft terraced house in Saujana Damansara, Petaling Jaya (reserve price: RM396,000). Both properties were sold at their second outing.
A property sold at its first auction was a 3,035 sq ft, 2-storey leasehold terraced house in Bukit Antarabangsa, Kuala Lumpur, carrying a reserve price of RM275,600.
Less successful was a 2,077 sq ft, leasehold 2-storey terraced house in Sunway Alam Suria, Shah Alam. The property (reserve price: RM287,600) was on the block for the third time and did not attract any bidder. Similarly, a freehold 1,668 sq ft, 3-storey terraced house in Cheras failed to find a buyer at its third auction at the reserve price of RM364,500.
The following are some landed properties that came up for auction from late March till early May 2009.
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 759, June 15 – 21, 2009.
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