Singapore mortgagee sale listings plummet 61.5% to 10 in Q4

Residential properties accounted for over half of the listings in 2022.

Mortgagee sale listings dropped significantly by 61.5% q-o-q to 10 listings in Q4 2022, according to a recent Knight Frank report. 

In comparison to the previous quarter when more properties were available from the banks, auction properties shrank to only eight residential homes and two industrial properties listed for mortgagee sale. The decrease in the industrial sector was more prominent, with a 60.0% drop from the previous quarter. 

Here’s more from Knight Frank:

Residential properties made up 56.4% (75) of the total mortgagee listings in 2022, with about 82.7% (62) comprising non-landed properties. Most of the non-landed listings sold were mostly in the fringe and suburban regions, suggesting more palatable entry prices and possible bargain opportunities for buyers to own a private home. During the quarter, a three-bedroom apartment in District 15 was sold at a discount of 11.4% from the opening price of S$3.33 million. 

There were few prime residential properties auctioned in Districts 9 and 10 in 2022. Nonetheless in October, a 2-bedroom condominium in Sophia Residence transacted at S$1.36 million, some 9.3% below the opening price, and a 4-bedroom apartment in One Robin was sold at the opening price of S$3.75 million. 

In the office sector, listings rose from one in 2021 to 11 in 2022. Throughout the year, four units were auctioned multiple times. The repeated listings garnered enough attention from prospect buyers to respond, with three out of the four offices eventually sold outside auction. Two offices in Vision Exchange which occupied a floor area between 840 sf and 1,098 sf were listed for two consecutive quarters, and were eventually sold after auction.

Owner sale listings

Owner sale listings dipped 18.2% q-o-q to 72 listings in Q4 2022, and 19.6% y-o-y to 250 listings for the year. In the quarter, residential listings remained unchanged at 29 while listings in both retail and industrial sectors dropped to 17 and nine respectively. At the same time, offices and HDB shophouses registered an increase in listings, with seven and six respectively. 

The hike in office listings was exacerbated by the slowing economy and a more challenging operating environment, as occupiers reviewed their space needs against landlords prioritising cash flows. More HDB shophouse owners also listed their properties for sale with hopes of benefiting from price appreciation. An HDB shophouse located in Ang Mo Kio Central was auctioned by Knight Frank in December for S$8.75 million, some 50.9% higher than the opening price of S$5.8 million. 

Residential properties made up about 34.4% (86) of the total owner listings for the year, retail shops at 30.4% (76), and industrial units consisted 18.4% (46). Among the residential listings from owners, non-landed listings comprised 68.6% (59) while landed listings made up 31.4% (27). While more non-landed units entered the auction market, the prevailing gap in price expectations resulted in none of the units being sold. However, in Q4 2022, a retail kiosk at the ground floor of Junction Nine was sold for just under S$1.08 million, as the retail sector continued to recover after the pandemic.