Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Proprietor sale listings clocked in at 43, dropping 23.2% q-o-q from 56 listings recorded in 4Q2024. The standing ten auction listings were for other kinds 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 residence.
One more property, a two-bedder residence in D’Ecosia, was torn down at $1.7 million– a 14.7% premium to its starting 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, translating to price cuts of 3.8% and 2.9% from their first rates.
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 prolonged high rate of interest in 2023 and 2024. Additionally, the prevalent tariffs revealed by the Trump management can lead to a dampening effect on the realty market.
“While there was no substantial surge in listings in 1Q2025, this may be the calmness before the storm of mopping worldwide tariffs and an impending trade battle strikes,” states Sharon Lee, head of public auction and sales at Knight Frank Singapore.
In regards to property type, non commercial properties composed 45.6% (62) of overall listings, up from the 46 residential listings in the past quarter. Business properties composed 38 (28%) listings, making up 36 retail units and 2 workplace units, compared to 36 retail units and 6 offices listed in 4Q2024. Industrial real estates composed 23.5% (32) of the total listings, up by one listing compared to the last quarter. There were also 2 shophouse listings in 1Q2025, compared to five in the previous quarter.
The auction sector also found a higher success rate in 1Q2025. Seven lists were knocked down last quarter, reflecting a growth rate of 5.1%. This is significantly higher than the 1.6% success rate reported in 4Q2024. The seven listings make up 5 mortgagee sales and 2 owner sales.
Four of the real estates were cost 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 shop at The Commerze @ Irving obtained $637,000; and a factory unit at T99 transformed hands for $635,000.
In General, Knight Frank is predicting a success price of around 5% for the whole of 2025, in accordance with the typical yearly auction growth price of 5.1% covering the last one decade.
Mortgagee sales accounted for 83 listings in 1Q2025, up 23.9% q-oq from 67 listings in the previous quarter. Knight Frank attributes the quarterly increase to the prolonged effect of high rate of interest all over 2023 and 2024, which triggered a rise in distressed assets to get in the public auction market.
The Singapore property auction industry viewed a total amount of 136 public auction lists (including repeat listings and leaving out properties marketed beyond auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based upon information assembled by Knight Frank Singapore.
According to the agency, the increase was “unforeseen”, as it matched with Chinese New Year festivities that usually lead to a break in auction activity.
Knight Frank attributes the higher success price to even more customer interest, as US interest rate cuts since September 2024 have actually encouraged buyers to keep an eye out for opportunities. The properties effectively auctioned in 1Q2025 had an overall gross sale value of $11.9 million.
While initial purchaser interest was monitored in 1Q2025, Knight Frank expects buyers to re-adopt “a cautious wait-and-see stance” in the middle of the expanding uncertainty. That said, with further rates of interest cuts prepared for, the agency notes that there could be a restored interest from real estate investors seeking to capitalise on the rise in mortgagee sale listings.
