KUALA LUMPUR: Malaysia’s auction market is booming as properties are usually offered below market prices, auctioneer Ng Chan Mau & Co Sdn Bhd said.
Ng Chan also said the evolvement of online publicity had increased public awareness on the industry.
Its business director Low Chee Hian said Bank Negara Malaysia’s move to reduce its Overnight Policy Rate by 25 basis points from 2.75 per cent to 2.50 per cent on March 3 had boosted investors interest in properties.
“Auctions can boost property demand as people opt for cost-savings purchases amid tough market,” he said at a press conference in conjunction with RHB Bank Mega Auction Fair here today.
Auctions also provide access to products information for bidders while promoting a straightforward transfer of ownership, Low added.
He, however, cautioned newbies to contact and obtain accurate information directly from reputable auctioneers to avoid any unfortunate circumstances.
Ng Chan expects RM11 million sales would have been generated within two hours of the start of RHB Bank Mega Auction Fair today (Thursday).
Low said the bulk of the auction sales would have been contributed by properties (RM10 million) and vehicles (RM1 million).
He said there were a total of 150 onsite bidders and 50 e-bidders participating at Ng Chan’s Hybrid Auction fair for both properties and vehicles.
Hybrid Auction allows bidders to pay auction deposit online using FPX (Internet-based payment gateway), allowing real-time payments for online purchases and bid online from any location.
“We have 130 mixed-properties priced up to RM1 million and 80 cars priced between RM20,000 and RM80,000 were put on auction,” Low said.
He said bidders/purchasers can immediately proceed to change of ownership, upon “fall-of-hammer” for the (auction) once their sales were concluded.
“The auction is held at market value and subsequently prices can be reduced if there is no successful bidder or taker,” he added.
Bidders can also enjoy savings of up to 30 per cent subject to take up rates.
Low said reserve price which falls too low would attract more bidders to increase their biddings.
Ng Chan organises between 15 and 20 auction fairs monthly at its headquarters here with support from the banks and bidder support centres in Penang and Johor.