Demand for auction properties, especially landed homes, rose in February and March. Auctioneers recorded a rise of at least 10% in sales in both months compared with January.
Auction House Sdn Bhd CEO Gary Chia says approximately 6,309 properties nationwide were put up for auction in February, and 6,571 in March. Of these, some 2,425 and 2,781 respectively were landed residential and commercial properties.
“Landed properties draw strong interest from bidders due to their higher potential for value appreciation,” he tells City & Country, adding that most of the properties were put up for auction as a result of defaults on the payment of housing loans.
Chia believes demand for landed homes under the hammer will continue to be strong due to their attractive prices and the overall positive mood over the country’s recovering economy.
Auction House’s associate company, Property Auction House Sdn Bhd, saw an increase of 15% in sales from January, while Syarikat RS Maniam Sdn Bhd auction manager G Nadarajan says the company recorded an average rise of 40% in sales since early this year.
“Single and 2-storey houses recorded good sales in general. Places like Petaling Jaya, Selangor, and Seremban in Negri Sembilan, are maintaining their popularity among bidders due to the location,” he says.
Another licensed auctioneer, Dore Raj of Jayaa Super X Auctioneers, says there is also demand for houses in Kajang and Datuk Keramat, Kuala Lumpur, and Shah Alam,Selangor.
City & Country randomly monitored residential properties at auction in February and March with a minimum reserve price of RM250,000.
Among notable deals are a 2-storey detached house in Kampung Tunku, Petaling Jaya, which was sold at its reserve price of RM1.4 million, and a 2-storey link house in UEP Subang Jaya, which was sold at RM385,000, about 28% above the reserve price of RM299,700. Both were sold on their first auction in February.
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 806, May 17-23, 2010.
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