Owner sales surge in Q3 property auction market: Knight Frank
Owner sales surge in Q3 property auction market: Knight Frank. According to Knight Frank’s market update on October 26, more property owners are turning to the auction market to sell their properties.
Owner sale listings nearly doubled to 91 in Q3 2022, up 46.3% from the previous quarter’s 62. This is a 7.1% rise over the 85 listings in the same period last year. This quarter, it also accounted for more than two-thirds of the 131 sale postings. Owner sale listings increased in almost all property segments, with residential listings going from 22 in the second quarter to 30 in the third, and industrial listings increasing from 13 to 20. Retail and shophouse listings climbed from 19 to 31 and one to six, respectively, this quarter.
A 99-year leasehold two-storey detached house on Pasir Ris Avenue sold for S$3.6 million, or around 20.8 percent higher than its opening price of around S$3 million. A B1 ramp-up factory at Ark @ Gambas was also sold for S$785,000, a 20.8% increase over the asking price of S$650,000.
A liquidator sale of undeveloped land along Balestier Road, which had been planned for mixed commercial and residential development, was also significant. The land lot was sold for S$1.1 million, which was 200% more than the opening price of S$380,000. According to Knight Frank, the land piece, which is adjacent to the freehold condominium Gifford Mansion, drew “heated bids” from investors hoping to integrate both holdings.
“Private property owners are becoming increasingly aware of the practical benefits of an auction with its public reach in the post-pandemic environment,” the real estate consultancy added. “Not only is unexpected interest at an auction likely to result in higher bids, but successful transactions between private owners outside of the auction are also common once these properties have been made public as a result of the process.” Meanwhile, mortgage sale listings dropped 44% year on year to 28. In the third quarter of 2022, six mortgagee properties were auctioned off.
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