_Auction Market Update Q3 2023

October 30, 2023

Auction listings rose 24.4% q-o-q to 102 (including repeat listings and excluding properties sold outside of auction) in Q3 2023 from the 82 in Q2 2023, owing to an increase in both mortgagee and owner sale listings. There were 29 mortgagee and 70 owner sale listings in Q3, up from the 22 and 57 listings respectively in Q2 (Exhibit 1). Despite the quarterly gain, the total number of listings declined 17.1% y-o-y from the 123 recorded in Q3 2022.
There were 29 mortgagee listings in Q3 2023, comprising two landed homes and 20 non-landed residences. These 22 residential listings represent an increase from 12 in the previous quarter, signalling that distress properties are now surfacing in the market due to the delayed effect of the elevated interest rates throughout the year. Buyer sentiment also turned cautious with the prevailing uncertainty and the increased Additional Buyer’s Stamp Duty rates.
In Q3 2023, there were 70 owner listings, a 22.8% q-o-q rise from the 57 in Q2 2023, but a 20.5% y-o-y decrease from the 88 in Q3 2022. This is the tenth consecutive quarter when owner sale listings surpassed mortgagee sale listings, with the exception of Q1 2022.
In the remaining three months of the year, there would likely be a gradual increase in the total number of listings based on the current level of enquires, with more mortgagee sale listings as a symptom of the uncertain outlook, a slowing economy, high interest rates and rising inflation begin to show up as auction listings.

Read the full report here.