Distress residential properties now surfacing in Singapore’s auction market

Out of 29 mortgagee listings in Q3, 22 were residential properties.

There were 29 mortgagee listings in Q3 2023 according to a report from Knight Frank, comprising two landed homes and 20 non-landed residences. 

“These 22 residential listings represent an increase from 12 in the previous quarter, signalling that distress properties are now surfacing in the market due to the delayed effect of the elevated interest rates throughout the year. Buyer sentiment also turned cautious with the prevailing uncertainty and the increased Additional Buyer’s Stamp Duty rates,” the report said.

Here’s more from Knight Frank:

Apart from residential mortgagee listings, there was a combined total of seven commercial and industrial properties listed for mortgagee sale, comprising two retail, one office and four industrial properties. 

The five residential and three industrial properties which were successfully auctioned in Q3 were mortgagee sale listings. Among the five residences, four were sold at a premium of between 0.4% and 9.0% from the respective opening prices while another sold at a discount of 1.7%. 

Despite the tentative sentiment exhibited by residential homebuyers observed throughout the quarter, family-sized units were still sought after as most of the residences sold were three-bedrooms or larger. A strata-titled terrace house in The Teneriffe was sold for S$3.52 million recording the highest premium of 9.0% among all properties auctioned during the quarter.