Property auction success rate trending upwards: Knight Frank

SINGAPORE'S property auction market saw 200 listings in Q2 2021, marginally down 0.5 per cent or one less listing than that of the previous quarter, even amid heightened restrictions during parts of May and June.

Success rates, including repeat listings and excluding properties sold outside of auction, rose to 6.5 per cent quarter on quarter (q-o-q) from its 3.5 per cent in Q1 2021. The three months saw 13 properties sold for a total gross value of S$36.9 million, according to Knight Frank's report 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 eight of the 13 sales. The remaining five came from sheriff and estate sales.

Among the mortgagee listings, residential properties continued to hold the majority with 46 per cent. This comprises 31 non-landed homes and nine landed home listings.

According to Knight Frank, affluent buyers scouting for owner-occupation homes in the prime districts 9,10 and 11 paid premiums for bigger units. The real estate company noted a 3,208 square foot freehold apartment at The Tate Residences in District 9, which sold for S$8.6 million or 9.1 per cent above its opening price.

Another four condominiums were sold under the hammer, all above their respective opening prices and below S$2 million.

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"Falling in the 'sweet spot' of below S$2 million, suburban apartments provided an alternative for buyers who prioritised larger living areas together with relatively modest budgets," said Knight Frank.

That said, industrial mortgagee listings declined to 18 in Q2 2021 after a high of 56 listings in Q1 2020. Bought by an end-user for business expansion, an industrial unit at Enterprise Hub sold for S$915,000, more than 30 per cent above its opening price.

Meanwhile, owner sales listings, which rose 31.6 per cent q-o-q and accounted for half of the total listings in the quarter, saw no sales during the three months.

"While owners increasingly ventured onto the auction route to divest their properties, price expectations remained high as many were not in immediate distress. This is especially so for most owners of landed properties where the price index rose 6.3 per cent in the six months since the start of 2021," reported Knight Frank.

The category saw 41 non-landed homes and eight landed homes listed during the quarter.

Following the steady numbers, Knight Frank expects listings to "increase moderately" in H2 2021. It also predicted that success rates will increase to surpass an average of 5 per cent for the whole of the year.

"Both owner-occupiers and investors are likely to continue to target value-purchases. Nonetheless, recurring waves of community infections leading to regressive restrictions can disrupt auction schedules in the coming months until such time as herd immunity is achieved through the national vaccination programme," Knight Frank added.