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Latest Property Real Estate News - Published on 26/02/2019
PIONEERING ANOTHER INDUSTRY FIRST
– HDB AUCTION
- Latest industry service offering caters to over 1 million HDB owners
- Transparency in bidding/selling prices seen as key strength of HDB Auction
Singapore, 25 February 2019 – PropNex Realty, Singapore's largest home grown listed real estate agency, launched yet another industry-first service offering – HDB Auction.
Through HDB Auction, PropNex provides HDB owners an alternative option to market their public housing units. Based on HDB’s statistics, there are over 1 million HDB owners in Singapore and 22,000 to 23,000 HDB resale transactions respectively in 2017 and 2018, we are confident that the HDB Auction will open up an additional platform for the public housing sellers to secure the right buyers.
HDB Auction permits the buying and selling of HDB flats in open public tender, where interested parties can offer and sell to the highest bidder, subject to the reserve price being met. Successful bidders will still have to comply with the HDB policies and procedures.
“As PropNex has over 40%1 market share in public housing, there is already a good network of salespersons who are assisting HDB upgraders and homeowners and this offers a value-added service for our clients. HDB Auction allows greater transparency in the final price concluded for properties and this is especially vital for cases whereowners are in conflict or there is a lack of trust and communication such as divorce cases. For property under estates where trustees are to discharge their duties in selling their HDB property at the highest prices with transparency, our newly introduced auction will be able to help these instances too. Additionally, based on our research, there will be a total of 30,000 HDB flats that would have fulfilled the Minimum Occupation Period (MOP) in 2019 compared to an average of 10,000 units in the last 10 years, thus increasing the supply side in the HDB resale market,” remarked Mr Ismail Gafoor, Executive Chairman and CEO of PropNex Limited.
HDB Auction is an alternative for many homeowners in achieving optimal results within a shorter time frame and eliminates long negotiation periods. Even in instances when the property is not successfully sold in its first auction, it allows sellers to understand the demand and discover potential price points for subsequent negotiations. The auction process also provides an avenue for greater publicity of the property thus allows future sale in private treaty basis if the property is not concluded on the auction day itself.
The HDB auction will be subjected to the HDB buyers and sellers process of which both are required to register their intent to sell/buy. They are to comply with the terms and conditions in the prescribed HDB Option-to-Purchase including the 21 calendar days HDB option period.
PropNex’s inaugural HDB Auction will be held on 5 April 2019, 2.30pm at the PropNex office on Level 10, HDB Hub East Wing. Our PropNex Auction hotline is 6829 6611 or email at email@example.com.
PropNex ventured into consultancy services in 2018 with the formation of PropNex Corporate Sales and Auction Team headed by Auctioneer Mr Clarence Goh. Mr Goh comes with extensive industry experience and has garnered commendable success in the sales of private and prime properties through auction, private treaty and tender for both owners and mortgagees.
“With the launch of this pioneering service, our Auction team will be expanding its list of auction properties to now include the HDB segment. With the team’s wealth of knowledge in the field and the bench strength of the management team, we strongly believe that we are able to help clients unlock value from their property transactions,” added Mr Ismail.
1 Based on the total number of HDB resale transactions closed by the Group and the total number of transactions as per HDB’s statistics for 2018