291 auction listings in Q3 highest since Q1 2011

But listings made by owners dropped 7.9% amidst the Hungry Ghost month.

Auction listings in Q3 inched up 7.4% QoQ to 291 from 271 listings in Q2, Knight Frank Singapore revealed.

First-time auction-listed properties dropped 15.6% QoQ to 124. Despite this, the figure still outperformed the 113 first time auction-listed properties back in Q3 2017. The firm also found that the success rate for auctions lowered down to 3.1% from 3.7% in Q2 as only nine properties were auctioned in Q3.

The report also noted that mortgagee sales comprised about 37.5% or 109 properties of the auction. With this, the number of mortgagee sale listings in Q3 2018 rose by 31.3% QoQ and 5.8% YoY. The increase came alongside sectors’ restructuring, volatility of the various asset markets, and the rising uncertainty in the external environment, the firm said.

Meanwhile, 51.9% of the auction listings were made by their owners. These listings fell 7.9% QoQ amidst the overlap with the Chinese Hungry Ghost Month Festival. On a YoY basis, listings skyrocketed by 48%.

Also read: Property auction sales shrink 77.1% to $10.44m in Q3

“We anticipate more listings for owner sales in the immediate term, Knight Frank Singapore senior director and head of auction Sharon Lee said.

“With the cooling measures in place, properties sold via private treaty are taking a longer time to transact, leading more owners to turn to auctions to expedite the sale of their properties. Separately, there has been more interest in industrial and commercial properties,” Lee added.

The firm also observed that there were more residential (132) and industrial (87) listings compared to Q2 figures. Meanwhile, retail auction listings dropped to 52 from 97 in Q2.

“Both industrial and office properties are likely to appeal to investors after the cooling measures, with the positive sentiments supported by stronger performance of the manufacturing, business services, financial and insurance sectors in H1 2018,” Knight Frank Singapore senior director and head of research Lee Nai Jia said.

The director also thinks that rental market is poised for industrial and office properties remains optimistic with improved rents expectation by 2019.