Auction listings decline 3% q-o-q in 1Q2023: Knight Frank

Auction listings saw a slight dip in 1Q2023, according to Knight Frank Singapore. The total number of auction listings of 96 declined 3.0% q-o-q, with the Chinese New Year festivities partly accounting for the fall. Owner listings exceeded mortgagee listings for a fourth consecutive quarter, at 57 for the former compared to the latter’s 32.

City-state rejuvenating Bukit The Myst Condo Timah area with multiple development plans to improve connectivity and green spaces.

The success rate of 6.3% in 1Q2023 was moderated, with only six properties sold. Residential properties constituted almost half of the total listings at 46.9%, with 18 mortgagee listings and 20 owner listings. The remaining seven listings were all of different types, including estate and receiver, and all but one were sold outside of auction.

Mortgagee listings surged q-o-q to 32, with an increase observed across all property types. Residential mortgagee listings were 14.3% lower y-o-y, however. Retail and office listings both doubled with four and three respectively, while industrial mortgagee listings tripled to seven.

Small quantum mortgagee properties had a success rate of five out of six, with transactions ranging from $350,000 to $1.12 million. One property – an office unit at Paya Lebar Square – transacted at $1.12 million, 1.8% higher than the opening bid of $1.1 million.

Owner listings dipped slightly q-o-q to 57, but were more than double of the 28 listings seen in 1Q2022. Knight Frank’s Lee attributes the trend to owners harnessing the auction platform to garner more interest for their property. An example is a four-bedroom apartment at Bayshore Park, which was listed for sale via auction in October 2022 and eventually sold after auction in February 2023.

Interestingly, the Ministry of Law reported 959 bankruptcy applications between January and March 2023, 5.6% higher q-o-q and 22.2% higher y-oy. Knight Frank expects to see more mortgagee listings in the second half of the year, with the growing popularity of auctions among owners likely to create more listings. Overall, they anticipate an auction success rate of 5-7% for the entire year.