Hybrid Auction Gains Popularity In Malaysia, More Bidders Participate

Through this setup, qualified bidders are allowed to participate physically (on-site bidders) or through the Internet using electronic devices (e-bidders).

In the recent fair, 130 mixed properties and 80 cars from all over the country were auctioned and two auction rooms were arranged for easy bidding, reported The Star.

Some mixed properties were priced at over RM1 million, while the price for cars ranged between RM20,000 and RM80,000.

“The auction is held at market value and subsequently, the price can reduce if there is no bidder or take-up. It can drop up to 30% for a property”, said Ng Chan Mau & Co Sdn Bhd licensed auctioneer and business director Low Chee Hian.

Aside from being “transparent and safe”, Low also highlighted some key advantages of hybrid auction, which include the additional information provided to bidders such as the market value of the property, its brief descriptions, as well as the margin of savings that they might enjoy.

Registered bidders can also get their deposits back the same day if they lose the bid, provided that they pay 10% deposit on the property value and RM1,000 deposit for cars.

Bidders can also conduct “online transfer without a bank draft” for any property, making it easier for e-bidders to transfer vehicle ownership.

“Upon the fall of hammer (at auction), sale is concluded, and the purchaser can immediately proceed with change of ownership,” explained Low.

The bidding process also benefitted distressed borrowers or owners of properties who opted to sell at auctions.

“We organise 15 to 20 auctions per month, with the assistance of various banks and have bidder support centres in Penang and Johor,” he elaborated.

More than RM10 million worth of sales for properties and another RM1 million for cars were projected during the less-than-two-hour bidding process, with most locals buying auction properties and a few Singaporeans particularly for condominiums in Johor, Low further revealed.

“In the past, we had buyers from China and Hong Kong (taking part in the e-bidding),” he said.

Newbies were, however, advised to be more “mindful” in bidding and “to deal with licensed auctioneers directly”.

Public awareness rose on e-bidding which saw a 10% increase in e-bid participation for the auction, mainly due to its benefits.

One example is Joe Lai, 32, a property consultant who helps his clients buy various properties through auction. He successfully bid for an apartment in Damansara Damai for RM356,400, as opposed to its market value of RM550,000.

“The process is very simple. It is very exciting as you compete with others and the price is very attractive”, said Lai.

Businessman M. Kovend, 27, is also among the successful bidders despite being a first-time participant. He obtained a condominium situated off Jalan Sentul Pasar for RM270,000.

“It is an easy and fun process,” said Kovend.

Source: PropertyGuru