Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
Four of the real estates were cost their respective opening prices: A three-bedroom apartment 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 brought $637,000; and a manufacturing facility unit at T99 changed hands for $635,000.
In terms of real estate kind, residential properties comprised 45.6% (62) of total listings, up from the 46 non commercial listings in the last quarter. Commercial properties comprised 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 likewise two shophouse listings in 1Q2025, contrasted to 5 in the past quarter.
Looking ahead, Knight Frank expects the uptick in mortgagee sale listings to continue throughout the year, as even more distressed assets materialise as a result of the prolonged high rates of interest in 2023 and 2024. Furthermore, the prevalent tariffs announced by the Trump administration could result in a dampening impact on the real estate industry.
Knight Frank attributes the higher success rate to even more buyer interest, as US interest rate cuts ever since September 2024 have encouraged buyers to keep an eye out for chances. The properties effectively auctioned in 1Q2025 had an overall gross sale value of $11.9 million.
Another property, a two-bedder apartment in D’Ecosia, was torn down at $1.7 million– a 14.7% premium to its opening rate of $1.5 million. At the same time, a factory unit at In-Space and a one-bedder at Le Wood were brought $1.9 million and $ 1 million respectively, converting to price cuts of 3.8% and 2.9% from their starting prices.
Mortgagee sales made up 83 home listings in 1Q2025, up 23.9% q-oq from 67 listings in the last quarter. Knight Frank connects the quarterly increase to the prolonged effect of high rate of interest all over 2023 and 2024, that created a rise in troubled assets to get in the public auction market.
Owner sale lists 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 residential units listed as sheriff sales, three liquidator sales of factories, a bank sale of an industrial unit, and an estate sale of a non-landed home.
The sell-off market additionally saw a higher success rate in 1Q2025. Seven lists were smacked down last quarter, reflecting a success price of 5.1%. This is considerably more than the 1.6% success rate recorded in 4Q2024. The seven listings make up five mortgagee sales and two owner sales.
While initial purchaser interest was observed in 1Q2025, Knight Frank anticipates buyers to re-adopt “a careful wait-and-see stance” amidst the growing uncertainty. That said, with further rates of interest cuts anticipated, the firm notes that there could be a renewed interest from real estate financiers looking for to capitalise on the increase in mortgagee sale postings.
The Singapore property auction market found a sum total of 136 auction lists (including repeat lists and leaving out real estates marketed outside of auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based on data compiled by Knight Frank Singapore.
According to the firm, the increase was “unanticipated”, as it overlaped with Chinese New Year events that generally lead to a lull in auction event.
“While there was no substantial surge in home listings in 1Q2025, this might be the calm before the storm of sweeping worldwide tolls and an impending trade war hits,” states Sharon Lee, head of public auction and sales at Knight Frank Singapore.
In General, Knight Frank is predicting a results price of around 5% for the whole of 2025, in line with the average yearly auction success price of 5.1% covering the last ten years.
