The Singapore auction market experienced a significant rise in listings during the fourth quarter of 2024, with a 47.7% increase to 127 listings, according to Knight Frank Singapore. Despite this surge, the success rate of auctions fell, with only two properties sold, translating to a mere 1.6% success rate for the quarter.
The increase in listings was largely driven by a 67.5% rise in mortgagee sales, reaching 67 listings, and a 36.6% increase in owner sales, totalling 56. However, the gross sales value for 2024 declined by 17.5% year-on-year to S$28.7 million, with only 15 properties sold compared to 24 in 2023. Sharon Lee, Head of Auction & Sales at Knight Frank Singapore, noted that the gap in price expectations between buyers and sellers often results in transactions being concluded privately after auctions.
Residential properties accounted for 36.2% of the listings in Q4, whilst industrial properties made up 24.4%. The quarter also saw a notable increase in retail shop and office listings. Despite the high number of listings, no mortgagee sales were concluded at auction, as creditors maintained market-level prices for distressed properties.
Looking ahead, the Ministry of Law reported 4,521 bankruptcy applications from January to November 2024, suggesting a potential rise in mortgagee sale listings in 2025. Knight Frank anticipates the auction success rate to remain around 5%, consistent with the average from 2015 to 2024.
