2023-07-25-莱坊-Singapore_Auction_Market_Update_Q2_2023_2页_591kb

Singapore Property Auction Market Q2 2023 Summary

Auction Listings and Sales Trends

• Total auction listings in Q2 2023 increased by 9.3% quarter-on-quarter to 82, down 30.5% year-on-year from Q2 2022.
• Residential properties made up 45.1% of listings, with a gross sales value of S$4.8 million, 16.0% higher than Q1 2023.
• Owner-initiated sales outnumbered mortgagee sales, with 24 owner listings compared to 22 mortgagee listings.
• Success rate in Q2 2023 was 4.9%, with low sale prices attributed to market conditions and seller urgency.

Proportion of Owner Sales

• Owner sales have increased since 2021, accounting for a higher share as owners seek to sell before financial pressures mount.
• Residential properties saw more interest due to auction platform transparency, attracting opportunist buyers.
• Total owner listings in Q2 2023 were 57 (residential: 24, commercial: 26), showing slight growth in residential categories but decline in others.

Economic Drivers and Market Outlook

• Uncertain economic outlook, with manufacturing and retail sectors facing global demand issues, inflation, and high interest rates.
• Increasing bankruptcies (e.g., 1,574 applications in Jan-May 2023) suggest more financial stress, likely leading to higher mortgagee sales.
• Businesses grapple with operational costs and loan affordability, pushing owners to adopt realistic pricing strategies.
• More listings expected in H2 2023, potentially stabilizing auction success rates between 5% and 7%.

Knight Frank anticipates continued market volatility and increased mortgagee sales amid economic headwinds.