Auction listings up by 7.1% q-o-q in 1Q2025, mortgagee sale listings likely to continue growing: Knight Frank
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 interest rates all over 2023 and 2024, which triggered a rise in distressed assets to enter the auction market.
The Singapore property auction industry viewed a sum total of 136 public auction listings (including repeat lists and omitting real properties sold beyond public auction) in 1Q2025, up 7.1% q-o-q contrasted to the previous quarter, based on data put together by Knight Frank Singapore.
Another real estate, a two-bedder apartment in D’Ecosia, was knocked down at $1.7 million– a 14.7% premium to its initial 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, equating to discounts of 3.8% and 2.9% from their first costs.
Lumina Grand showflat location
Looking ahead, Knight Frank anticipates the uptick in mortgagee sale listings to proceed throughout the year, as even more troubled possessions materialise as a result of the long term high rate of interest in 2023 and 2024. Additionally, the widespread tolls revealed by the Trump administration can cause a dampening impact on the real estate sector.
In regards to property type, residential properties made up 45.6% (62) of overall listings, up from the 46 non commercial listings in the previous quarter. Industrial real estates made up 38 (28%) listings, comprising 36 retail units and two workplace units, compared to 36 retail units and six offices listed in 4Q2024. Industrial real estates comprised 23.5% (32) of the general listings, up by one listing compared to the last quarter. There were additionally two shophouse listings in 1Q2025, compared to five in the previous quarter.
The sell-off market also noticed a higher growth rate in 1Q2025. Seven lists were knocked down last quarter, showing a growth rate of 5.1%. This is considerably more than the 1.6% success rate documented in 4Q2024. The 7 listings comprise 5 mortgagee sales and two proprietor sales.
Proprietor sale listings clocked in at 43, dropping 23.2% q-o-q from 56 listings recorded in 4Q2024. The remaining ten auction postings were for other kinds of sales– five non commercial units listed as sheriff sales, three liquidator sales of manufacturing facilities, a bank sale of a commercial unit, and an estate sale of a non-landed house.
According to the company, the boost was “unanticipated”, as it overlaped with Chinese New Year celebrations that generally result in a break in auction activity.
Four of the properties were cost their respective opening prices: A three-bedroom residence at Scotts Square fetched $4.1 million; a HDB shophouse in Serangoon was sold for $1.9 million; a retail shop at The Commerze @ Irving brought $637,000; and a manufacturing facility unit at T99 altered hands for $635,000.
Overall, Knight Frank is predicting a results rate of about 5% for the entire of 2025, in line with the average yearly auction growth price of 5.1% spanning the last ten years.
While initial buyer interest was observed in 1Q2025, Knight Frank expects buyers to re-adopt “a cautious wait-and-see stance” amidst the expanding uncertainty. That said, with additional interest rate cuts prepared for, the agency notes that there could be a renewed interest from property investors looking for to capitalise on the increase in mortgagee sale postings.
Knight Frank associates the higher success rate to more purchaser interest, as US interest rate cuts since September 2024 have encouraged buyers to watch out for possibilities. The properties effectively auctioned in 1Q2025 had a complete gross sale value of $11.9 million.
“While there was no considerable surge in listings in 1Q2025, this could be the calmness before the storm of sweeping worldwide tariffs and an impending trade war hits,” claims Sharon Lee, head of auction and sales at Knight Frank Singapore.
