Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
The Singapore property auction industry saw a total amount of 136 auction listings (including repeat lists and omitting real properties offered outside of public auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based on data assembled by Knight Frank Singapore.
According to the company, the boost was “unanticipated”, as it overlaped with Chinese New Year festivities that typically lead to a time-out in auction activity.
Looking forward, Knight Frank anticipates the uptick in mortgagee sale listings to proceed throughout the year, as even more distressed assets happen because of the prolonged high interest rates in 2023 and 2024. Additionally, the prevalent tolls revealed by the Trump management could bring about a dampening impact on the realty sector.
Knight Frank associates the greater success price to even more buyer interest, as US interest rate cuts since September 2024 have urged buyers to keep an eye out for opportunities. The properties efficiently auctioned in 1Q2025 had a total gross sale worth of $11.9 million.
Owner sale listings clocked in at 43, going down 23.2% q-o-q from 56 listings recorded in 4Q2024. The remaining ten auction postings were for other kinds of sales– five residential units listed as sheriff sales, three liquidator sales of factories, a financial institution sale of a commercial unit, and an estate sale of a non-landed home.
Mortgagee sales made up 83 listings in 1Q2025, up 23.9% q-oq from 67 listings in the last quarter. Knight Frank attributes the quarterly rise to the prolonged effect of high rates of interest throughout 2023 and 2024, that triggered a boost in distressed assets to go into the auction market.
While initial buyer interest was observed in 1Q2025, Knight Frank anticipates buyers to re-adopt “a mindful wait-and-see position” amid the growing uncertainty. That said, with additional interest rate cuts expected, the company notes that there could be a renewed interest from real estate investors seeking to capitalise on the rise in mortgagee sale postings.
Four of the real estates 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 changed hands for $635,000.
One more real estate, a two-bedder house in D’Ecosia, was torn down at $1.7 million– a 14.7% premium to its starting rate of $1.5 million. At the same time, a manufacturing facility unit at In-Space and a one-bedder at Le Wood were yielded $1.9 million and $ 1 million each, converting to discounts of 3.8% and 2.9% from their opening rates.
Overall, Knight Frank is predicting a results price of around 5% for the entire of 2025, in accordance with the typical yearly auction success rate of 5.1% extending the last ten years.
“While there was no considerable surge in listings in 1Q2025, this may be the peace before the storm of sweeping global tolls and a looming trade battle hits,” states Sharon Lee, head of auction and sales at Knight Frank Singapore.
In terms of real property type, non commercial properties made up 45.6% (62) of total listings, up from the 46 home listings in the previous quarter. Industrial properties comprised 38 (28%) listings, consisting of 36 retail units and two workplace units, compared to 36 retail units and six offices listed in 4Q2024. Industrial real estates made up 23.5% (32) of the total listings, up by one listing contrasted to the previous quarter. There were likewise two shophouse listings in 1Q2025, compared to five in the past quarter.
The auction market additionally found a higher success rate in 1Q2025. Seven listings were knocked down last quarter, mirroring a growth rate of 5.1%. This is substantially greater than the 1.6% success rate documented in 4Q2024. The seven postings consist of five mortgagee sales and 2 proprietor sales.
