2025-02-10-莱坊-Singapore_Auction_Market_Update_Q4_2024_2页_564kb

Q4 2024 Auction Sales Summary

Core Content Overview

This report provides an analysis of the auction sales market in Singapore during Q4 2024, highlighting trends in the number of listings, success rates, and the types of properties being auctioned. It also includes insights into the market outlook for 2025, considering the impact of financial pressures and the gap in price expectations between buyers and sellers.

Key Statistics

• Total Auction Listings in Q4 2024: 127 (including repeat listings, excluding properties sold outside of auction)
• Total Auction Listings in 2024: 418, representing a 16.8% increase from 2023
• Gross Sales Value in Q4 2024: S$2.3 million
• Gross Sales Value in 2024: S$28.7 million, down 17.5% from 2023
• Success Rate in Q4 2024: 1.6%
• Overall Annual Success Rate (2015–2024): 5.1%
• Knight Frank's 2025 Success Rate Forecast: 5%

Breakdown of Listings by Sale Type

• Mortgagee Sales:

  • Residential: Increased from 19 to 25, with 20 non-landed and 5 landed properties
  • Commercial: 16 retail shop listings, up from 9 in Q3
  • Industrial: 26 listings, more than double from 12 in Q3
  • Success Rate: No mortgagee listings were sold at auction in Q4, as creditors held prices at market levels

• Owner Sales:

  • Residential: 20 listings, similar to the previous quarter (24), comprising 17 non-landed and 3 landed properties
  • Retail: 20 listings, up from 15 in Q3
  • Office: 6 listings, up from 2 in Q3
  • Industrial: 4 listings, down from 8 in Q3

Property Type Distribution

• Residential: 36.2% (46 properties) of total listings
• Retail Shops: 28.3% (36 properties)
• Offices: 4.7% (6 properties)
• Industrial: 24.4% (31 properties)
• Shophouses: 3.9% (5 properties)

Market Observations

• The number of auction listings increased significantly in Q4 2024, driven by a surge in mortgagee sale listings.
• Despite the higher number of listings, the gross sales value declined, indicating a gap in price expectations between vendors and buyers.
• Sellers, including creditors, expect to sell at market value, while buyers seek discounts, leading to a low success rate.
• Properties listed in auction can still be sold outside of the auction process if prices are adjusted to match buyer offers.

Market Outlook for 2025

• Mortgagee Sales: Expected to increase due to the rising number of bankruptcy applications (4,521 from Jan–Nov 2024), which may result in more distressed assets for sale.
• Owner Sales: Continue to dominate the auction market, with a likely increase in the number of properties sold outside of auction.
• Success Rate: Knight Frank anticipates a similar annual success rate of 5% for 2025, consistent with the historical average of 5.1% (2015–2024).

Conclusion

The auction market in Singapore experienced a notable increase in listings during Q4 2024, particularly in mortgagee sales. However, the market faced challenges with lower success rates, primarily due to the mismatch in price expectations between sellers and buyers. As financial pressures continue to affect real estate, the market is expected to see more mortgagee sale listings in 2025, with owner sales still playing a dominant role. Buyers are advised to maintain realistic expectations to capitalize on the opportunities available in the auction market.