Chart of the Day: Fewer properties sold at auctions even as number of listings soar

Only 7 properties were successfully sold in Q2.

Fewer properties were sold at auctions in the second quarter although the number of auction listings soared, according to a report by Knight Frank.

Knight Frank noted that only 7 properties were successfully auctioned off in Q2, a significant decline of 36.4% quarter-on-quarter, or 22.2% year-on-year.

An overall success rate of 3.9% was achieved, down from 6.3% in the first quarter. The success rate for properties under mortgagee sales also marked its first quarter of decline over the last one year, falling to just 9.5% in Q2 from 18.5% in the previous quarter.

Similarly, total auction sales value fell by 72.1% quarter-on-quarter in to $10 million.

"The declines in success rate and sales value could also be attributed to a recent shift in the buying approach for auctions; an increasing number of potential buyers prefer to enter into post-auction private treaty arrangements. Other potential buyers are observed to be holding out during auctions, while on a lookout for rare properties that fit their price expectations. There continues to be a wide disparity in price expectations for buyers and sellers," Knight Frank said.