Singapore property auction listings down 26.5% to 150 in Q3

Success rates also dropped to 4.7% during the quarter.

A recent Knight Frank report reveals real estate auction listings dropped 26.5% from 204* in Q2 2021 to 150 in Q3 2021 (including repeat listings and excluding properties sold outside of auction). This was due to the disruption caused by the resurgence of COVID-19 restrictions.

“Owner sales listings accounted for 66.7% of the 150 listings in Q3 2021, more than double the proportion of mortgagee listings at 28.0%. It was observed that certain banks were willing to grant owners some time to dispose of their property before initiating foreclosure proceedings, given the buoyant real estate market,” Knight Frank adds.

Here’s more from Knight Frank:

Success rates (including repeat listings and excluding properties sold outside of auction) dropped to 4.7% in Q3 2021, down from 6.4% in the previous quarter. As auctioneers were cautious and adhered strictly to the safe distancing limits of those attending physical auctions, seven properties were sold for S$20.3 million in Q3 2021 from 13 properties in Q2 2021, corresponding with the drop in listings.

Mortgagee sales

Mortgagee sale listings more than halved to 42 in Q3 2021 from 87 in Q2 2021.

Residential properties made up 50.0% of total mortgagee sale listings during the quarter, where almost all were non-landed properties. There were hardly any bank sales for landed homes as more owners marketed their own properties before resorting to foreclosure. Landed properties have been coveted by new wealth and aspiring homeowners, not only as an asset but also for the larger space and lifestyle it offers. 

Of the 21 residential mortgagee sale listings, a 2-bedroom condominium at Vida (5 Peck Hay Road) successfully transacted at S$1.76 million. 

There were 13 industrial mortgagee listings in Q3 2021, down from 18 in the previous quarter. A majority of 12 out of these 13 properties opened at prices below S$2.0 million, with only a 5-storey detached factory at 8 Tuas South Street 6 going for S$3.5 million. This was sold during auction at the opening price. Another terrace factory at Enterprise Hub on Toh Guan Road East also transacted during auction for S$1.7 million, 3.0% above the opening price. 

Retail mortgagee listings dropped to seven from 27 last quarter. Opening prices averaged S$1.0 million in Q3 2021, down from S$2.8 million in Q2 2021. The majority were ancillary retail shops in condominiums like Spazio @ Kovan, Kensington Square and Millage, with only one in the business centre Hexacube. Opening prices ranged from S$670,000 for a 261-sf unit at Millage, to S$1.4 million for a 990-sf unit at Euhabitat.

Owner sales

There were 100 owner sale listings in Q3 2021, down from 104* in Q2 2021. The decrease in owner sale listings was marginal at 3.8% q-o-q when compared to the 26.5% q-o-q drop in overall listings. More owners engaged auctioneers to leverage their network, using their expertise to connect with a larger pool of potential buyers. 

Contrary to what might be public perception, not every sale by auction is a distressed one. For instance, a ground-floor corner shop space at 71 Seng Poh Road was sold under the hammer at S$3.2 million, a 28.0% premium over the opening price of S$2.5 million via an estate sale. 

Some owners in the booming shophouse market also turned to auctions to achieve a good price point. Two fully tenanted shophouses at 77/79 Dunlop Street in the Little India Conservation Area were sold to investors for S$7.6 million.

There were 31 retail owner sale listings compared to 28 last quarter, with owners generally holding on to their original opening prices.

Market outlook

Constant changes in COVID-19 restrictions and persistently high community infections led to declines in auction listings in Q3 2021, more so than in the first half of the year when listing volumes hovered around 200 quarterly.

The number of auction listings in the next two months are expected to be tepid. However, once the healthcare eco-system has adjusted to the new normal and barring any other unforeseen developments in the COVID-19 situation, the level of auction activity is expected to pick up towards the end of the year or in early 2022.

*Auction listings in Q2 2021 have been updated.