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THE number of homes going under the auctioneer's hammer has surged as Singaporeans open up to the idea of bidding wars to clinch a better deal for their properties.

Home owners have long shunned auctioning their properties for fear of being mistaken for debt-ridden mortgagees desperate to sell their property at forced-sale prices.

But auctions are beginning to lose their stigma of being associated with distressed sales, with more owners now seeing them as an efficient and potentially more lucrative way to sell their properties.

Property consultant Colliers International said the number of residential auctions it conducted jumped from 22 in the first quarter of the year to 103 in the April to June quarter, with an increase in sales value from $700,000 to $4.77 million.

These include quality bungalows in prime areas like Bukit Timah, detached houses at Mount Sinai and Siglap, as well as apartments in Districts 9, 10 and 11.

Colliers' executive director and veteran auctioneer, Ms Grace Ng, said: 'Owners of these highly sought-after properties are recognising the benefits from the publicity generated to a wider market of buyers by auction advertisements compared to a sale by private treaty.'

One owner, a businessman in his late 60s who wants to remain anonymous, is putting his 2,200 sq ft terrace house in River Valley up for sale later this month. 'I've attended a number of auctions and I've seen how the prices go up when people are fighting for a piece of property,' he said.

Although he has had private offers of about $1.1 million, he expects the price at auction to hit $1.3 million.

'It's two bites of the cherry,' he said. 'If the bid doesn't meet the reserve price, there's always room for negotiation with the owner.'

Property consultancy Knight Frank, in its report, has also observed a 'noticeable growth' in auctions among owners.

The firm recorded a 50 per cent increase in the number of sales via auctions in the first half of the year compared with the same period last year.

The trend seems to be towards buyers attracted to high-end residential properties with bigger floor areas for owner-occupation as well as a potential for future collective sales, said the report.

For example, a 42-year-old businessman, who wanted to be known only as Mr Toh, bid successfully for a 3,030 sq ft Hillview corner terrace earlier this year. It cost him about $900,000.

'I wanted a place big enough for my parents and two children to live comfortably,' he said. 'I don't mind paying a little more as long as my requirements are met.'

Locking in buyers through a 10 per cent deposit and immediate contract signing also gives sellers more security.

Knight Frank auctioneer Mary Sai said: 'Some owners prefer this to the two-week window period and 1 per cent deposit through property agents.'

To auction a property, the owner pays a fee of $600 to $800 to cover advertisements, photographs, printing of the property's particulars and rental of the auction room. This is in addition to auction charges of 1 per cent of the sale price, similar to what property agents charge. A goods and services tax of 5 per cent is also levied.

If a property fails to sell at the auction, usually because bids are below the reserve price, they are then put up for private treaty sale before being entered for a repeat auction.

'Owners of large properties normally have no problem with paying the auction expenses. In fact, some even fork out a higher budget for larger and more prominent advertisements,' said Ms Ng.

It is no wonder then that analysts predict a jump in the sales figure of residential properties sold by auctions this quarter. Most will come from several high-value properties being put up for sale, like that of the 12 bungalow parcels at Sentosa Cove's Southern Residential Precinct on Aug 25.

Ms Sai, who expects a 15 to 20 per cent increase, said: 'Given the bullish market, people will take the opportunity to expose their properties to competitive bidding. They're confident it will help them achieve the best price possible.'

jeanloo@sph.com.sg