Residential property auction success rate up

Jul 27, 2021


SINGAPORE'S residential property auction market saw 200 listings in Q2 2021, partially down 0.5 per cent or one less listing than that of the previous quarter, even amidst increased restrictions throughout parts of May and also June.

Success rates, including repeat listings and also excluding buildings offered outside of auction, rose to 6.5 percent quarter on quarter (q-o-q) from its 3.5 percent in Q1 2021. The three months saw 13 homes cost a complete gross worth of S$ 36.9 million, according to Knight Frank's record released on Tuesday. This is a 183.3 per cent rise from the previous quarter's gross sales value.

The mortgagee category, which had 87 listings, led the quarter with 8 of the 13 sales. The remaining five originated from sheriff and also estate sales.

Among the mortgagee listings, residential properties remained to hold the majority with 46 per cent. This makes up 31 non-landed residences as well as nine landed housing listings.



According to Knight Frank, upscale customers searching for owner-occupation residences in the prime districts 9,10 and 11 paid premium for bigger units. The real estate firm noted a 3,208 square foot property home at The Tate Residences in Area 9, which cost S$ 8.6 million or 9.1 per cent over its opening price.

An additional four condominiums were sold under the hammer, all above their respective opening prices as well as listed below S$ 2 million.

"Falling in the 'sweet area' of listed below S$ 2 million, suburban homes offered an alternative for buyers that prioritised larger living areas along with fairly small budgets," claimed Knight Frank.

That said, industrial mortgagee listings declined to 18 in Q2 2021 after a high of 56 listings in Q1 2020. Purchased by an end-user for business growth, a commercial unit at Enterprise Hub sold for S$ 915,000, greater than 30 percent above its opening rate.

Proprietor sales listings, which increased 31.6 per cent q-o-q and also accounted for half of the complete listings in the quarter, saw no sales during the three months.

"While proprietors progressively ventured onto the auction path to unload their properties, price assumptions continued to be high as lots of were not in instant distress. This is specifically so for a lot of owners of landed properties where the consumer price index increased 6.3 percent in the six months since the start of 2021," reported Knight Frank.

The group saw 41 non-landed houses and also 8 landed houses listed during the quarter.

Complying with the stable numbers, Knight Frank expects listings to "increase reasonably" in H2 2021. It also forecasted that success rates will enhance to go beyond an average of 5 percent for the whole of the year.

"Both owner-occupiers and also investors are most likely to remain to target value-purchases. Nevertheless, repeating waves of neighborhood infections bring about regressive restrictions can disrupt auction timetables in the coming months till such time as herd immunity is achieved via the nationwide vaccination programme," Knight Frank added.