Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
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 rise to the delayed influence of high rates of interest all over 2023 and 2024, that triggered a boost in distressed assets to enter the public auction market.
Generally, Knight Frank is anticipating a results rate of about 5% for the whole of 2025, in accordance with the average annual auction growth price of 5.1% extending the last 10 years.
According to the company, the increase was “unexpected”, as it matched with Chinese New Year events that typically result in a lull in sell-off activity.
The auction market also found a greater growth rate in 1Q2025. Seven lists were knocked down last quarter, mirroring a success rate of 5.1%. This is considerably greater than the 1.6% success rate documented in 4Q2024. The 7 listings consist of five mortgagee sales and two owner sales.
The Singapore property auction market viewed a sum total of 136 public auction listings (including repeat listings and leaving out real estates offered outside of public auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based upon data put together by Knight Frank Singapore.
“While there was no significant rise in listings in 1Q2025, this might be the calm before the storm of mopping global tariffs and an impending trade war strikes,” claims Sharon Lee, head of auction and sales at Knight Frank Singapore.
In regards to property kind, non commercial properties made up 45.6% (62) of complete listings, up from the 46 residential listings in the previous quarter. Industrial properties composed 38 (28%) listings, comprising 36 retail units and 2 office units, compared to 36 retail units and six offices listed in 4Q2024. Industrial real estates composed 23.5% (32) of the overall listings, up by one listing contrasted to the previous quarter. There were additionally two shophouse listings in 1Q2025, contrasted to five in the past quarter.
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 retail store at The Commerze @ Irving brought $637,000; and a manufacturing facility unit at T99 altered hands for $635,000.
Looking ahead, Knight Frank expects the uptick in mortgagee sale listings to proceed throughout the year, as more distressed properties happen because of the extended high rates of interest in 2023 and 2024. Furthermore, the prevalent tolls announced by the Trump management might bring about a dampening impact on the real estate sector.
Another property, a two-bedder house in D’Ecosia, was torn down at $1.7 million– a 14.7% premium to its initial rate 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 discounts of 3.8% and 2.9% from their starting costs.
Owner sale listings clocked in at 43, dropping 23.2% q-o-q from 56 listings recorded in 4Q2024. The remaining ten auction listings were for other kinds of sales– five residential units itemized as sheriff sales, three liquidator sales of manufacturing facilities, a bank sale of a commercial unit, and an estate sale of a non-landed residence.
Knight Frank associates the higher success rate to more buyer interest, as US interest rate cuts ever since September 2024 have actually encouraged buyers to look out for chances. The properties successfully 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 careful wait-and-see stance” amidst the growing uncertainty. That said, with more rates of interest cuts prepared for, the agency notes that there could be a restored interest from real estate investors looking for to capitalise on the boost in mortgagee sale postings.
