
Singapore's shop auction sales flopped as rents squeezed in 1Q
Only one shop was sold.
According to Knight Frank, out of the 27 Shops and Shophouses put up for auction in 1Q 2014, only 1 shop at Golden Mile Complex was concluded at $550,000, below the opening price of $560,000.
The price appreciation and compressed rentals of Shops and Shophouses in the recent periods resulted in low average rental yield, which explained the relatively weak demand for this sector. This coupled with the emergence of TDSR has adversely affected offer prices from buyers.
Nevertheless, the higher success rate of 4 per cent in 1Q 2014 compared to no transaction in 4Q 2013 marked a slight improvement in demand for Shops and Shophouses.