Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Knight Frank connects the higher success rate to more purchaser interest, as US interest rate cuts ever since September 2024 have actually encouraged buyers to keep an eye out for possibilities. The properties successfully auctioned in 1Q2025 had a total gross sale value of $11.9 million.
Another property, a two-bedder apartment in D’Ecosia, was knocked down at $1.7 million– a 14.7% premium to its opening price of $1.5 million. At the same time, a factory unit at In-Space and a one-bedder at Le Wood were brought $1.9 million and $ 1 million each, translating to discount rates of 3.8% and 2.9% from their starting rates.
According to the agency, the rise was “unanticipated”, as it matched with Chinese New Year celebrations that usually lead to a break in sell-off activity.
Mortgagee sales made up 83 home listings in 1Q2025, up 23.9% q-oq from 67 listings in the previous quarter. Knight Frank connects the quarterly increase to the postponed impact of high interest rates all throughout 2023 and 2024, that created a rise in distressed assets to go into the public auction market.
In terms of property type, non commercial properties comprised 45.6% (62) of complete listings, up from the 46 home listings in the last quarter. Commercial properties made up 38 (28%) listings, making up 36 retail units and 2 office units, contrasted to 36 retail units and 6 offices listed in 4Q2024. Industrial properties made up 23.5% (32) of the overall listings, up by one listing contrasted to the previous quarter. There were likewise 2 shophouse listings in 1Q2025, contrasted to five in the previous quarter.
The sell-off market additionally noticed a higher growth rate in 1Q2025. Seven listings were knocked down last quarter, showing a success price of 5.1%. This is substantially greater than the 1.6% success rate reported in 4Q2024. The seven listings comprise 5 mortgagee sales and two proprietor sales.
Overall, Knight Frank is predicting a success rate of around 5% for the whole of 2025, in line with the average annual auction growth rate of 5.1% spanning the last 10 years.
The Singapore property auction market viewed a sum total of 136 auction lists (including repeat listings and leaving out real estates marketed outside of auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based on data assembled by Knight Frank Singapore.
While initial purchaser interest was monitored in 1Q2025, Knight Frank expects buyers to re-adopt “a mindful wait-and-see position” in the middle of the expanding uncertainty. That said, with further interest rate cuts expected, the company notes that there could be a renewed interest from real estate capitalists looking for to capitalise on the increase in mortgagee sale home listings.
Looking ahead, Knight Frank anticipates the uptick in mortgagee sale listings to proceed throughout the year, as even more distressed possessions materialise due to the long term high rates of interest in 2023 and 2024. Additionally, the prevalent tariffs announced by the Trump management might lead to a dampening impact on the realty industry.
“While there was no substantial rise in listings in 1Q2025, this might be the calm before the storm of mopping international tariffs and a looming trade war strikes,” claims Sharon Lee, head of auction and sales at Knight Frank Singapore.
Owner sale lists appeared at 43, dropping 23.2% q-o-q from 56 listings recorded in 4Q2024. The standing ten auction postings were for other sorts of sales– five non commercial units listed as sheriff sales, three liquidator sales of manufacturing facilities, a financial institution sale of an industrial unit, and an estate sale of a non-landed residence.
Four of the properties were sold at their respective opening prices: A three-bedroom residence at Scotts Square brought $4.1 million; a HDB shophouse in Serangoon was sold for $1.9 million; a market store at The Commerze @ Irving obtained $637,000; and a manufacturing facility unit at T99 transformed controls for $635,000.
