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 real estate owners are resorting to the auction market as a method of sale.
In Q3 2022, owner sale listings nearly quadrupled to 91, up 46.3% from the previous quarter’s 62. This represents a 7.1% increase over the 85 listings in the same time period last year. It also accounted for more than two-thirds of the 131 sale listings this quarter. Owner sale listings increased in almost all property segments, with residential listings increasing from 22 in Q2 to 30 in Q3, and industrial listings increasing from 13 to 20. This quarter, retail and shophouse listings increased from 19 to 31 and one to six, respectively.
This includes a 99-year leasehold two-storey detached house on Pasir Ris Avenue, which sold for S$3.6 million, or approximately 20.8 percent more than its opening price of around S$3 million. A B1 ramp-up factory at Ark @ Gambas was also sold for S$785,000, representing a 20.8% premium over the initial asking price of S$650,000.
A liquidator sale of leftover land along Balestier Road, which was planned for mixed commercial and residential development, was also important. The real estate consultancy sold the land lot for S$1.1 million, 200% more than the opening price of S$380,000. The land parcel, which is adjacent to the freehold condominium Gifford Mansion, drew “heated bids” from investors looking to merge both parcels, according to Knight Frank.
“In the post-pandemic period, private property owners are becoming increasingly conscious of the practical benefits of an auction with its public reach,” the real estate consultancy added. “Not only is it possible for unexpected interest at an auction to result in higher bids, but successful transactions among private owners outside of the auction are also typical once these properties have been made public as a result of the process.” Meanwhile, mortgage sale listings fell 44% year on year to 28 listings. Six mortgagee homes were auctioned off in the third quarter of 2022.
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