Auction sales total $18.9 million, with listings up 11% year on year in 3Q2022: Knight Frank

October 26, 2022


50 Pasir Ris Avenue, which sold for $3.6 million, a 20.8% increase over the opening price.

According to Knight Frank's quarterly auction report, auction listings increased 11.0% year on year to 131 (including repeat listings) in 3Q2022. Meanwhile, mortgagee sale listings fell 44.0% year on year to 28, while owner sale listings increased 46.8% year on year to 91 in 3Q2022.

"Retail and shophouse listings contributed significantly to the total rise in listings in the quarter, with retail listings growing 45.8% year on year to 35 and shophouse listings jumping 600.0% year on year to seven," according to the study.

In the third quarter, nine properties totaling $18.9 million were sold, resulting in a 6.9% success rate.

Six of the 28 mortgagee sale listings were sold at auction in 3Q2022, with three of them being freehold stores. Two of these businesses were sold for 5.8% and 12.7% more than their initial values, respectively.

Mortgagee listings fell across all categories, with the office sector decreasing the most, from seven to two.

Given the scarcity of landed property, two recently listed landed terraced homes in the suburbs sold for 3.3% to 6.7% more than the asking price.

According to Sharon Lee, head of auction & sales at Knight Frank, listings were up across most categories for owner sale listings, with residential increasing from 22 to 30 in the quarter.

Unexpected interest during an auction leads to greater bids, and successful transactions between private owners outside of the auction are also typical after these properties are made public, she says.

A 99-year leasehold two-storey detached property on Pasir Ris Avenue was auctioned off for $3.60 million, which was 20.8% more than the starting price of $2.98 million.

Bidders were quite interested in the liquidator auction of mixed business and residential land along Balestier Road. It was auctioned off by Knight Frank Singapore and sold for $1.14 million, 200% more than its starting price of $380,000.

"Despite the current atmosphere of uncertainty," Lee writes, "mortgagee sale listings have declined and prices in most categories continue to grow."

Due to the diminishing stigma of auctions, modern real estate owners have begun to use auctions to garner attention for their properties.

Lee believes the success rate will be higher than the 5% predicted at the start of the year.