Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Knight Frank associates the higher success rate to more customer interest, as US interest rate cuts ever since September 2024 have actually urged buyers to look out for chances. The properties effectively auctioned in 1Q2025 had a total gross sale value of $11.9 million.
Looking forward, Knight Frank anticipates the uptick in mortgagee sale listings to continue throughout the year, as even more troubled possessions happen as a result of the extended high rate of interest in 2023 and 2024. In addition, the prevalent tariffs revealed by the Trump management might result in a dampening influence on the property market.
The Singapore property auction market found a sum total of 136 public auction lists (including repeat listings and excluding properties sold beyond public auction) in 1Q2025, up 7.1% q-o-q compared to the previous quarter, based upon data put together by Knight Frank Singapore.
Proprietor sale listings 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 sorts of sales– five non commercial units itemized 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 home.
While initial buyer interest was observed in 1Q2025, Knight Frank expects buyers to re-adopt “a careful wait-and-see stance” amidst the growing uncertainty. That said, with further interest rate cuts anticipated, the company notes that there could be a renewed interest from real estate financiers seeking to capitalise on the increase in mortgagee sale home listings.
Another property, a two-bedder apartment in D’Ecosia, was knocked down at $1.7 million– a 14.7% premium to its starting price of $1.5 million. On the other hand, a factory unit at In-Space and a one-bedder at Le Wood were yielded $1.9 million and $ 1 million respectively, equating to price cuts of 3.8% and 2.9% from their starting prices.
Mortgagee sales represented 83 home listings in 1Q2025, up 23.9% q-oq from 67 listings in the last quarter. Knight Frank connects the quarterly increase to the postponed effect of high rates of interest throughout 2023 and 2024, which triggered an increase in distressed assets to get in the public auction market.
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 cost $1.9 million; a retail shop at The Commerze @ Irving fetched $637,000; and a manufacturing facility unit at T99 changed hands for $635,000.
The auction market also saw a greater success rate in 1Q2025. Seven listings were knocked down last quarter, showing a growth price of 5.1%. This is considerably greater than the 1.6% success rate recorded in 4Q2024. The seven postings consist of 5 mortgagee sales and 2 proprietor sales.
“While there was no substantial rise in home listings in 1Q2025, this may be the calmness before the storm of cleaning international tolls and an impending trade battle strikes,” says Sharon Lee, head of public auction and sales at Knight Frank Singapore.
In General, Knight Frank is anticipating a success rate of around 5% for the entire of 2025, in accordance with the average annual auction success price of 5.1% spanning the last one decade.
According to the company, the rise was “unexpected”, as it coincided with Chinese New Year festivities that generally result in a break in auction event.
In regards to real estate kind, housing properties made up 45.6% (62) of overall listings, up from the 46 residential listings in the last 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 made up 23.5% (32) of the overall listings, up by one listing compared to the last quarter. There were also 2 shophouse listings in 1Q2025, compared to 5 in the previous quarter.
