Auction listings drop 26.5% in Q3
This percentage represents the 150 total listings.
The total number of auction sale listings for the third quarter (Q3) dropped to 150, which is 26.5% less than the second quarter's (Q2) record of 204.
In the same report, Knight Frank said auction sale listing volumes dropped from 65 in July to 43 and 42 in August and September, respectively.
More than half of the listings in Q3, or 66.7%, was owner sales listings
Owner sale listings carried Q3, accounting for 100 or 66.7% of the total listings. The number is more than double of the mortgagee listings at 28.0%.
“It was observed that certain banks were willing to grant owners some time to dispose of their property before initiating foreclosure proceedings, given the buoyant real estate market,” Knight Frank analysts said.
Mortgagee listings were also cut by more than half to 42 in Q3 from 87 in Q2, buoyed by residential properties which recorded 21 listings or 50% during the quarter.
Retail mortgagee listings saw the biggest drop in Q3, decreasing three-fold to seven from 27 in Q2. Average opening prices also declined to S$1m in Q3 from S$2.8m in Q2.
Retail owner sale listings likewise dipped to 31 from 28 last quarter, “with owners generally holding on to their original opening prices.”
As listings declined, success rates also decreased to 4.7% from 6.4% in the previous quarter.
Analysts cited COVID-19 restrictions for the drop seen in properties up for auction.
“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,” Knight Frank said.
Auction listings in the next two months are also expected to be “tepid,” according to analysts.
Analysts however said the number will pick up toward the end of 2021 or early 2022, “once the healthcare eco-system has adjusted to the new normal and barring any other unforeseen developments in the COVID-19 situation.”