Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Mortgagee sales accounted for 83 listings in 1Q2025, up 23.9% q-oq from 67 listings in the previous quarter. Knight Frank associates the quarterly rise to the delayed effect of high rate of interest all over 2023 and 2024, that triggered an increase in troubled assets to enter the auction market.
In terms of real estate type, housing properties comprised 45.6% (62) of total listings, up from the 46 home listings in the past quarter. Business real estates composed 38 (28%) listings, making up 36 retail units and two office units, compared to 36 retail units and 6 offices listed in 4Q2024. Industrial properties made up 23.5% (32) of the general listings, up by one listing contrasted to the last quarter. There were also 2 shophouse listings in 1Q2025, compared to 5 in the past quarter.
The Singapore property auction industry viewed a total amount of 136 auction lists (including repeat lists and excluding real properties offered outside of public auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based on data compiled by Knight Frank Singapore.
Whilst initial buyer interest was observed in 1Q2025, Knight Frank anticipates buyers to re-adopt “a mindful wait-and-see stance” amidst the growing uncertainty. That said, with more rates of interest cuts prepared for, the company notes that there could be a renewed interest from real estate investors looking for to capitalise on the boost in mortgagee sale home listings.
Knight Frank connects the greater success price to even more buyer interest, as US interest rate cuts since September 2024 have actually urged buyers to keep an eye out for possibilities. The properties successfully auctioned in 1Q2025 had a total gross sale value of $11.9 million.
Owner sale listings clocked in at 43, going down 23.2% q-o-q from 56 listings recorded in 4Q2024. The standing ten auction listings were for other types of sales– five residential units itemized as sheriff sales, three liquidator sales of factories, a bank sale of an industrial unit, and an estate sale of a non-landed house.
One more real estate, a two-bedder residence in D’Ecosia, was knocked down at $1.7 million– a 14.7% premium to its starting rate of $1.5 million. At the same time, a factory unit at In-Space and a one-bedder at Le Wood were yielded $1.9 million and $ 1 million each, equating to discount rates of 3.8% and 2.9% from their starting rates.
Four of the properties were sold at their respective opening prices: A three-bedroom condo at Scotts Square brought $4.1 million; a HDB shophouse in Serangoon was cost $1.9 million; a market shop at The Commerze @ Irving brought $637,000; and a factory unit at T99 changed hands for $635,000.
Looking forward, Knight Frank anticipates the uptick in mortgagee sale listings to proceed throughout the year, as more troubled properties happen because of the extended high rate of interest in 2023 and 2024. Furthermore, the widespread tolls revealed by the Trump administration can lead to a dampening impact on the property sector.
According to the company, the increase was “unforeseen”, as it coincided with Chinese New Year celebrations that typically cause a break in sell-off event.
“While there was no considerable surge in home listings in 1Q2025, this may be the peace before the storm of cleaning international tolls and a looming trade war strikes,” states Sharon Lee, head of public auction and sales at Knight Frank Singapore.
In General, Knight Frank is anticipating a success rate of about 5% for the whole of 2025, in line with the typical annual auction growth price of 5.1% spanning the last ten years.
The auction sector also found a greater growth rate in 1Q2025. Seven listings were smacked down last quarter, reflecting a growth rate of 5.1%. This is substantially greater than the 1.6% success rate reported in 4Q2024. The seven listings make up 5 mortgagee sales and 2 owner sales.
