A 26.5% decline in the number of overall auction listings overall was also reported, with 150 listings in Q3 2021, down from 204 listings in Q2 2021.
Singapore’s property auction market saw success rate drop 4.7% in the third quarter of 2021, from 6.4% in the preceding quarter, according to Knight Frank.
A total of seven properties were transacted for $20.3 million in Q3 2021, down from the previous quarter’s 13 properties.
The drop in success rate comes as the number of auction listings overall also declined 26.5% to 150 listings in Q3 2021, from 204 in Q2 2021.
“Constant changes in COVID-19 restrictions and persistently high community infections led to declines in auction listings in Q3 2021, more so than in the first half of the year when listing volumes hovered around 200 quarterly,” said Knight Frank.
Notably, listing volume stood at 65 in July before dropping to 43 in August and 42 in September.
The property consultancy revealed that owner sale listings made up 66.7% of the total listings in Q3 2021, more than double the proportion for mortgagee listings at 28%.
This comes as certain banks were “willing to grant owners some time to dispose of their property before initiating foreclosure proceedings, given the buoyant real estate market”.
In Q3 2021, mortgagee listings declined by more than 50% to 42 from 87 in Q2 2021. Of these, residential properties accounted for 50% at 21 – almost all of which were non-landed properties.
“There were hardly any bank sales for landed homes as more owners marketed their own properties before resorting to foreclosure,” said Knight Frank.
There were also 13 industrial mortgagee listings and 27 retail mortgagee listings.
Meanwhile, owner sale listings stood at 100 during the quarter under review, down from 104 in the previous quarter.
“The decrease in owner sale listings was marginal at 3.8% quarter-on-quarter when compared to the 26.5% quarter-on-quarter drop in overall listings.”
Knight Frank attributed this to more owners engaging auctioneers “to leverage their network, using their expertise to connect with a larger pool of potential buyers”.
Looking ahead, Knight Frank expects the number of auction listings for the next two months to be tepid.
“However, once the healthcare eco-system has adjusted to the new normal and barring any other unforeseen developments in the COVID-19 situation, the level of auction activity is expected to pick up towards the end of the year or in early 2022,” it added.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
