Auction listings in Singapore saw a 3.0% q-o-q decline in 1Q2023, according to a research report by Knight Frank. The drop is partly attributed to the Chinese New Year festivities when some auction activities were postponed.Owner listings outnumbered mortgagee listings in 1Q2023, continuing a trend that began in 2Q2022, highlights Sharon Lee, head of auction & sales at Knight Frank Singapore. Compared to 1Q2022, the total number of auction listings in 1Q2023 rose by 20%.

The fall in listings in 1Q2023 was accompanied by a more moderate success rate of 6.3%. Six properties were sold in the quarter, compared to 9.1% success rate in 4Q2022 when the listings numbered 99. Residential properties constituted 46.9% (45) of the total listings in 1Q2023. Of these, 18 were mortgagee listings and 20 were owner listings. Retail, office and industrial properties also made up the remaining seven listings.

Mortgagee listings surged in 1Q2023, more than three times from 10 in 4Q2022 to 32. There were 18 residential mortgagee listings, 14.3% lower y-o-y than the 21 recorded in 1Q2022. Retail and office mortgagee listings increased to four and three respectively in 1Q2023, while industrial mortgagee listings tripled from two in 4Q2022 to seven in the same quarter.

The increase in mortgagee listings could be due to the challenging economic environment, impacted by global economic disruptions, inflation and rising interest rates, notes Lee. Of the 32 mortgagee listings in 1Q2023, six were successfully auctioned, ranging from $350,000 to $1.12 million. Five of the properties were sold either at a discount or close to their opening price.

Owner listings totalled 57 in 1Q2023, dipping from the 72 logged in the previous quarter, but more than double the 28 listings seen in the corresponding quarter of the previous year. Knight Frank’s Lee attributes the rise to owners leveraging auction platforms to garner more interest for their property.

Meanwhile, 20 residential owner listings were recorded in 1Q2023, fewer than the 29 in the previous quarter, but higher than the seven in 1Q2022. Retail and industrial owner listings increased to 19 and 10 listings respectively in 1Q2023, while office owner listings dropped 14.3% q-o-q to six in 1Q2023.

CapitaLand Development to redevelop JCube site into 40-storey residential and commercial development, JCube Condo Residence, to launch in the second half of 2023; while 6.8-hectare mega white site near JCube sets JCube Residence to bring 375,000 sq m in GFA with 1,760 private homes over next five to 10 years.

The tough business climate could result in more mortgagee listings, especially for workplace properties, in the second half of 2023, Lee observes. At the same time, the growing popularity of auctions among owners could also create more listings, with Knight Frank forecasting the overall success rates for the year to be around 5-7%.