Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Knight Frank associates the greater success rate to more customer interest, as US interest rate cuts ever since September 2024 have actually motivated buyers to keep an eye out for possibilities. The properties effectively auctioned in 1Q2025 had an overall gross sale value of $11.9 million.
Looking ahead, Knight Frank anticipates the uptick in mortgagee sale listings to proceed throughout the year, as even more distressed assets materialise due to the prolonged high rate of interest in 2023 and 2024. In addition, the extensive tariffs announced by the Trump administration could result in a dampening effect on the realty industry.
Proprietor sale listings appeared at 43, going down 23.2% q-o-q from 56 listings recorded in 4Q2024. The standing ten auction listings 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 a commercial unit, and an estate sale of a non-landed house.
The auction sector also noticed a greater growth rate in 1Q2025. Seven listings were smacked down last quarter, showing a growth rate of 5.1%. This is dramatically higher than the 1.6% success rate reported in 4Q2024. The 7 postings make up 5 mortgagee sales and two proprietor sales.
According to the firm, the boost was “unforeseen”, as it overlaped with Chinese New Year celebrations that typically result in a break in auction event.
Generally, Knight Frank is predicting an effectiveness rate of around 5% for the entire of 2025, in accordance with the average yearly auction success price of 5.1% extending the last ten years.
“While there was no significant rise in home listings in 1Q2025, this could be the peace before the storm of sweeping international tolls and a looming trade war strikes,” claims Sharon Lee, head of public auction and sales at Knight Frank Singapore.
Whilst initial buyer interest was observed in 1Q2025, Knight Frank anticipates buyers to re-adopt “a cautious wait-and-see position” amid the expanding uncertainty. That said, with more rate of interest cuts anticipated, the firm notes that there could be a restored interest from property capitalists looking for to capitalise on the boost in mortgagee sale home listings.
Marina View Residences condo price
In regards to property type, non commercial properties made up 45.6% (62) of overall listings, up from the 46 residential listings in the previous quarter. Commercial real estates comprised 38 (28%) listings, making up 36 retail units and 2 office units, compared to 36 retail units and six offices listed in 4Q2024. Industrial properties made up 23.5% (32) of the overall listings, up by one listing compared to the previous quarter. There were also 2 shophouse listings in 1Q2025, contrasted to five in the previous quarter.
Another real estate, a two-bedder house in D’Ecosia, was torn 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 respectively, equating to discounts of 3.8% and 2.9% from their first costs.
Four of the real estates were cost their respective opening prices: A three-bedroom condo at Scotts Square fetched $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.
The Singapore property auction market saw a total of 136 auction listings (including repeat lists and omitting real properties offered beyond auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based on data compiled by Knight Frank Singapore.
Mortgagee sales made up 83 listings in 1Q2025, up 23.9% q-oq from 67 listings in the last quarter. Knight Frank associates the quarterly rise to the postponed influence of high interest rates throughout 2023 and 2024, that triggered a rise in troubled assets to get in the public auction market.
