2024-05-22-莱坊-Singapore_Auction_Market_Update_Q1_2024_2页_588kb

Q1 2024 Property Auction Summary

Core Content Overview

Q1 2024 saw continued activity in property auctions, with a notable increase in owner sale listings compared to previous years, despite a quarterly decline in auction listings. The market dynamics suggest that property owners are increasingly turning to auctions as a means of disposal, particularly in response to financial pressures and the expectation of prolonged high interest rates.

Auction Sale Listings and Success Rates

• Total Auction Listings: 90 in Q1 2024

  • Quarterly (Q-O-Q): Down by 9.1% from the previous quarter
  • Yearly (Y-O-Y): Up by 16.9% from Q1 2023

• Residential Listings: 43 (47.8% of total), slightly down from 50 in Q4 2023

• Office Listings: 8 (8.9% of total), down from 10 in Q4 2023

• Industrial Listings: 18 (20.0% of total), down from 20 in Q4 2023

• Retail Listings: 19 (21.1% of total), up slightly from 18 in Q4 2023

• Success Rate: 5.6% for Q1 2024, up from 4.0% in Q4 2023

  • Total Sales Value: S$13.2 million
  • Properties Sold: 5 (2 residential, 3 industrial)
  • Freehold Preference: 4 out of 5 properties sold were freehold, indicating buyer preference for longer-term ownership

Mortgagee Sales

• Total Mortgagee Listings: 22 in Q1 2024

  • Q-O-Q Decline: 29.0% from 31 in Q4 2023
  • Y-O-Y Decline: 2 less than 24 in Q1 2023

• Residential Mortgagee Listings: 12, down by 45.5% from 22 in Q4 2023

• Retail Mortgagee Listings: 4, up from 3 in Q4 2023

• Office Mortgagee Listings: 1, unchanged from Q4 2023

• Industrial Mortgagee Listings: 5, unchanged from Q4 2023

• Properties Sold at Premium: 2

  • The Sea View Home: Sold at S$3.6 million (premium of 2.9%)
  • Vertex Industrial Unit: Sold at S$965,000 (premium of 4.3%)

Owner Sales

• Total Owner Listings: 68 in Q1 2024

  • Q-O-Q Increase: 3.0% from 66 in Q4 2023
  • Y-O-Y Increase: 47.8% from 46 in Q1 2023

• Residential Owner Listings: 31, up from 26 in Q4 2023 and 12 in Q1 2023

• Office Owner Listings: 7, down from 9 in Q4 2023

• Industrial Owner Listings: 13, down from 15 in Q4 2023

• Retail Owner Listings: 15, unchanged from Q4 2023

• Industrial Owner Properties: 11 freehold, 2 leasehold

• Industrial Sales: Two freehold B2 factories sold at their opening prices

Market Outlook

• Bankruptcy Applications: Increased by 11.8% Q-O-Q to 1,125 between January and March 2024

• Business Closures: Rose by 0.8% to 14,205, with a 23.5% increase Y-O-Y

• Expected Impact: More private homes and workplace properties are anticipated to enter auction listings in the second half of 2024 due to the rise in bankruptcy and business closures

• Interest Rate Impact: Residential property owners who took loans in 2021 (when rates were low) may face rising borrowing costs after their fixed-rate period ends, potentially leading to more disposals

• Auction Success Rate Forecast: Knight Frank expects the overall success rate for 2024 to remain between 5% and 7%

Key Insights

• Auctions remain a popular disposal method for property owners, especially in the context of financial distress.
• The success rate for Q1 2024 improved, reflecting increased buyer interest and a preference for freehold properties.
• The market is expected to see more distressed properties entering auction listings in the coming months.
• Investors are advised to remain watchful and opportunistic as they may find attractive deals in the auction market.