Auction Sales on the rise in Singapore : Worrying Trend

Auction Sales on the rise in Singapore : Auction Sales of private properties are on the rise in Singapore. In 2022, a total of 39 properties amounting to a total sale value of $88.93 million were sold by auction.

The lower sale value, as compared to 2021, is due to fewer transactions of $5 million and above. In 2022, most were in the S$5-8 million range. The total sale value also excludes deals closed via private treaties, which means a number of notable deals are not included in the final tally.

A total of 459 properties were put up for auction in 2022. Of this, 267 (58%) were owner listings, while 158 (34%) were mortgagee listings.

Residential properties made up the bulk of properties auctioned this year, with 20 units sold for a total sale value of $52.71 million. Commercial properties made up the second biggest segment, with 10 units sold for a total of $13.47 million.

Auction Sales on the rise in Singapore : More and More Owner Listing

One trend is that the proportion of owner listings in 2022 is the highest in seven years. It is also the second consecutive year owner listings have surpassed mortgagee listings.

The higher share of owner listings points to a growing number of owners turning to the auction market to sell their property. More and more sophisticated owners are tapping into the auction market as an additional way to sell their properties. The Super Rich in Singapore are also looking for good properties to buy.

However we expect more distressed sales in 2023, amid an uncertain economic environment and rising interest rates. As real estate borrowers start to feel the strain of increased interest rates and hence increased monthly mortgages, it is likely that a growing number of distressed sales especially in the second half of the year.

Read about how to make your property attractive to rental customers.

2023 is going to be a pretty busy year for the Singapore property auction market.

Auction Sales On The Rise In Singapore
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