Decline in mortgagee sales slows auction listings in Q2

A decline in interest rates also has a role in this trend.

Auction listings in the second quarter (Q2) declined 11.8% quarter-on-quarter to 120 due to a decrease in mortgagee sale listings.

According to Knight Frank Singapore’s new analysis, mortgagee sale listings declined to 64 in Q2 from 83 in the first quarter (Q1), amidst the easing of interest rates.

The decline in borrowing “allowed more homeowners to stay current on their mortgage payments, giving a window for those who have been financially distressed to dispose of such properties themselves instead of having to foreclose.”

Knight Frank said the latest number of auction listings also includes repeat listings.

“These regular listings could likely be from owners who purchased properties at steep premiums in the past. As financial pressures mounted coupled with the increasingly challenging business climate due to the global trade wars and reciprocal tariffs, perhaps some of these owners were not able to keep up with mortgage payments,” said Sharon Lee, head of Auction & Sales, Knight Frank Singapore.

“This pressure on owners would be even more daunting, especially for properties that have been vacant for prolonged periods. With no rental income to offset interest costs, investors and business owners are compelled to put their properties up for disposal in the hope mitigating financial loss,” she added.

In Q2, there were 36 residential mortgagee listings – similar to the 37 in the previous quarter – consisting of 30 non-landed homes and six landed residences.

There were also three commercial mortgagee listings in Q2, comprising two office mortgagee listings and one retail mortgagee listing made up of five retail shops. In the same period, there were 25 industrial mortgagee listings, similar to the 26 in the previous quarter.

For owner sale, Knight Frank said there were 41 listings, nearly same as the 43 logged in Q1. At the same time, there were 15 listings of other types, comprising seven bank sale listings, three estate sale listings, three sheriff sale listings, and one listing each for a liquidator and a receiver sale.

“Amidst the ongoing geopolitical tensions, escalating conflicts, and rising uncertainties in the global trade environment, more property investors, especially those possessing more than one investment property, might liquidate their assets and preserve cash,” Lee said.

“Over time, properties that have been listed for a period and have undergone price adjustments become more likely to find buyers, providing the auction environment with steady transactional momentum,” she added.