Auction listings double y-o-y in 1Q2019

/ EdgeProp Singapore
April 4, 2019 1:28 PM SGT
The number of auction listings rose by 103.4% y-o-y to 362 listings in 1Q2019, according to a report by Knight Frank Singapore. This compares to 380 auction listings in the previous quarter. However, the success rate (based on total number of listings) in 1Q2019 was 1.4%, largely the same as the previous quarter, but lower than 6.2% in 1Q2018.
The property auction market saw a total sales value of $11.57 million in the first quarter, which translates into a 42.1% y-o-y decline from $53.84 million in 1Q2018, notes Edmund Tie & Company (ET&Co). The decline could be due to the after-effects of last year’s property cooling measures, which have softened the residential property market since 3Q2018, says ET&Co. Other factors include the New Year and Lunar New Year festive periods in January and February, as well as the March school holiday.
“Many buyers appear to have a waitand-see attitude, especially with many upcoming new launches, giving buyers a wide variety of choices,” adds ET&Co.

Overall mortgagee listings up

Mortgagee sale listings rose across all property types in 1Q2019. Residential listings under mortgagee sales accounted for 52.2% (83 listings) of total mortgagee listings, which are up by 25.8% q-o-q and 69.4% y-o-y.
The same quarter saw 57 non-landed residential listings and 26 landed residential listings under mortgagee sales, up by 6.7% q-o-q and 23.8% q-o-q respectively. The number of residential listings from Districts 9, 10 and 11 put up under mortgagee sales also increased “significantly”, notes Knight Frank Singapore. It attributes the increase to higher monthly mortgage payments arising from rising interest rates, coupled with a subdued rental market and a rise in distressed sales after cooling measures kicked in.
Retail and industrial mortgagee listings also increased by 39.1% and 14.7% q-o-q respectively, due to subdued leasing conditions.

Rise in owner sale listings

Owner sale listings formed 54.1% (196 listings) of total listings in 1Q2019, which is a 19% q-o-q decline, although the number of listings under owner sales remained higher at 108.5% y-o-y.
In prime Districts 9, 10, and 11, residential units listed by owners grew by 27.3% q-o-q in 1Q2019. The average price quantum for non-landed residential listings put up by owners in 1Q2019 was about $4.9 million, compared to $7.6 million for landed residential listings.
“There has been an increase in mortgagee listings for properties at choice locations, which given their limited availability, present a good opportunity for buyer acquisition at this moment,” says Sharon Lee, head of auction and sales at Knight Frank Singapore.