Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Mortgagee sales represented 83 listings in 1Q2025, up 23.9% q-oq from 67 listings in the previous quarter. Knight Frank attributes the quarterly rise to the prolonged influence of high rate of interest all over 2023 and 2024, which created a rise in troubled assets to enter the public auction market.
The auction sector also noticed a higher success rate in 1Q2025. Seven listings were knocked down last quarter, mirroring a success price of 5.1%. This is considerably higher than the 1.6% success rate reported in 4Q2024. The 7 listings comprise 5 mortgagee sales and 2 owner sales.
In General, Knight Frank is forecasting an effectiveness rate of about 5% for the whole of 2025, in accordance with the typical annual auction growth rate of 5.1% covering the last ten years.
“While there was no considerable rise in home listings in 1Q2025, this may be the calmness before the storm of cleaning international tolls and an impending trade war hits,” claims Sharon Lee, head of public auction and sales at Knight Frank Singapore.
In regards to property type, housing properties composed 45.6% (62) of complete listings, up from the 46 non commercial listings in the past quarter. Commercial real estates made up 38 (28%) listings, consisting of 36 retail units and 2 workplace units, compared to 36 retail units and six offices listed in 4Q2024. Industrial properties composed 23.5% (32) of the total listings, up by one listing compared to the last quarter. There were additionally 2 shophouse listings in 1Q2025, contrasted to five in the previous quarter.
Looking ahead, Knight Frank expects the uptick in mortgagee sale listings to continue throughout the year, as even more distressed possessions materialise because of the extended high rate of interest in 2023 and 2024. In addition, the widespread tariffs revealed by the Trump management can lead to a dampening effect on the property industry.
Another real estate, a two-bedder residence in D’Ecosia, was knocked down at $1.7 million– a 14.7% premium to its initial cost of $1.5 million. Meanwhile, a factory unit at In-Space and a one-bedder at Le Wood were yielded $1.9 million and $ 1 million each, equating to discounts of 3.8% and 2.9% from their first costs.
According to the agency, the rise was “unanticipated”, as it overlaped with Chinese New Year events that generally result in a lull in auction event.
While initial buyer interest was monitored in 1Q2025, Knight Frank expects buyers to re-adopt “a mindful wait-and-see stance” amidst the growing uncertainty. That said, with further interest rate cuts anticipated, the agency notes that there could be a renewed interest from property investors looking for to capitalise on the rise in mortgagee sale postings.
Owner sale lists clocked in at 43, going down 23.2% q-o-q from 56 listings recorded in 4Q2024. The standing ten auction postings were for other kinds of sales– five residential units itemized as sheriff sales, three liquidator sales of manufacturing facilities, a bank 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 apartment at Scotts Square fetched $4.1 million; a HDB shophouse in Serangoon was sold for $1.9 million; a retail store at The Commerze @ Irving obtained $637,000; and a factory unit at T99 altered controls for $635,000.
The Singapore property auction market found a total amount of 136 auction lists (including repeat listings and leaving out properties offered outside of auction) in 1Q2025, up 7.1% q-o-q compared to the previous quarter, based upon data compiled by Knight Frank Singapore.
Knight Frank connects the higher success price to even more buyer interest, as US interest rate cuts ever since September 2024 have urged buyers to keep an eye out for chances. The properties efficiently auctioned in 1Q2025 had a total gross sale worth of $11.9 million.
