Why Some Singapore Homeowners Are Choosing Auctions To Sell Their Properties

Case in point: some readers I met over the past weeks, who believed no one would bid for the properties seized in the $3 billion money-laundering bust. This was due to the taboo of the original properties having been bought through illicit activity. They were wrong by the way; several of the properties were sold via auction, including a $6.6 million penthouse.

But I noticed that this belief persisted even after the properties were sold; there were still people saying they’d never have bought it even if they had the money.

Crime aside, some associate these auctions with situations like divorce, death, or bankruptcy. Mortgagee sales, in particular, seem high on the list of assumptions. This is likely due to recent events: in 1H 2026, the majority of property auctions did involve mortgagee sales. Mortgagee sales were at a six-year high in 1H, with 216 of 292 auction listings (74%) being mortgagee sales; owner sales were just 53 (18.2%).

If we look at the longer term picture however, owner sales were more common than mortgagee sales, from 2021–23. Even in the immediate aftermath of Covid in 2021, owner sales constituted 50% of auction listings versus 45% mortgagee listings. By 2022 this had risen to 58% owners versus mortgagees, and in 2023 it was 65% owners versus mortgagees (you can see here for details).

Still, recent events - along with longstanding assumptions - have resulted in many Singaporeans assuming that selling via auction involves some kind of desperate situation.

From word on the ground, agents have also told us that - even at times when owner sales outnumber mortgagee sales - there is a greater tendency for mortgagee listings to transact at the auction, versus owner listings. I did notice, for instance, that according to Knight Frank’s report in Q4 2023, 21 of 24 successful auction sales were mortgagee sales. This was despite there being 239 owner listings versus 106 mortgagee listings (about 2.25 times more).

This further enforces the impression that “auction = mortgagee,” even though it’s often not true.

So Why Do Some Owners Use Auctions Anyway?

It’s not necessarily out of desperation. That’s a misconception, and steep discounts are quite rare.

There are a number of advantages that auctions bring, over the conventional sales route. The key advantages are:

• Finding the price point for an unusual or low-transaction property
• Greater numbers of financially-prepared buyers
• It’s a back-up after listings start to go stale
• Failed auction attempts often still lead to private negotiations anyway

1. Finding the price point for an unusual or low-transaction property

A common problem in the property market is low transaction volumes. This can happen for landed homes (especially high-value, one-of-a-kind bungalows), as well as penthouses and boutique projects.

If there hasn’t been an equivalent transaction in the past 12 months, it’s equally tough for both the seller - and prospective buyers - to gauge what’s a fair offer. This is where the bidding process at an auction comes in handy. When all the competing buyers are in the same room, the bids reveal what the market is likely prepared to pay.

This doesn’t magically create demand; but a passed-up property is also an answer that sellers can use. Whatever the outcome, it beats picking a theoretical number and just hoping someone agrees.

2. Greater numbers of financially-prepared buyers

For most private-property auctions, prospective buyers know to inspect the property, review the Conditions of Sale, and arrange their financing before they bid.

(The auctioneer conducts viewings ahead of the auction)

Most attendees are familiar with the rules: if the bidding reaches the reserve and the hammer falls, the successful bidder signs the Memorandum of Contract or Conditions of Sale immediately. They must also pay the deposit - typically 5% or 10% of the successful bid price - on the day itself. The balance is usually paid around eight to 12 weeks later.

This doesn’t mean buyers at auctions can’t default, run into financing issues, etc. But it does mean most of the prospective buyers are prepared to act faster; and transactions can close quicker than with traditional methods. This can be appealing to sellers in urgent need (e.g. you need to move fast to secure your next home, or you’re running out of time for ABSD remission).

3. It’s a back-up after listings start to go stale

For conventional listings, the first two weeks (give or take) tend to be the most important period. At that point you’re the new option for people currently searching the area; and I do think conventional listings could get even more interest than auctions - just for this brief period at the start.

But what happens if you drag on for months and months? At a certain point, interest tends to arrive in fits and starts. But if you use an auction at this point, it sets a target date and draws attention from a focused group of bidders. These prospective buyers behave very differently from property portal seekers; not least because any auctioned property could be snapped up at a definite date.

The bidders showing up for an auction also tend to be a new crowd, including those who’ve never seen it on a portal. Even if they have, a viewing before the auction can do a lot to spark renewed interest.

4. Failed auction attempts often still lead to private negotiations anyway

Let’s get this out of the way early: most properties don’t sell under the hammer. Quite often, the reserve price isn’t met. But that doesn’t mean it didn’t get the attention of interested buyers. Quite often, the negotiations don't end - they just move away from the auction room.

Prospective buyers usually approach sellers privately after the auction, and both parties have a clearer sense of the price. So sometimes, the auction is the process that turns vague interest into a serious private-treaty discussion.

For Both Buyers And Sellers, I Do Think This Is An Underused Tool In Our Portal-Driven Market

I was quite looking forward to Propnex’s attempts at HDB auctions, back in 2019. This was the first real effort at bringing auction platforms to resale flats. It eventually fell through and stopped in 2021, mainly due to Covid more than anything; but perhaps some agency out there will take a stab at reviving it.

There’s still an emotional factor to be overcome: besides spiritual taboos, some people still feel that auctions take advantage of desperate people losing their homes. But while no one should pretend it’s pleasant to see someone lose their property, this may be getting the role of the auction wrong: the financial distress exists before the auction. An open auction can be more protective of a debtor than a quiet, discounted sale to a single buyer; and the reserve price is rarely as “discounted” as many assume.

In addition, many auctions do not fall into this category, and are a result of willing sellers attempting price discovery.

Singapore’s resale market is overwhelmingly portal-driven, and an auction won’t be a replacement for that. But it provides alternatives for properties that are disadvantaged using portal-based listings; such as units that are unusual and need price discovery, or just have sellers who don’t have the luxury of time.

There can be quite a bit of variation in the cost of auctioning your property, based on the agency you approach. But as a loose figure, you’d typically pay between $800 to $1,500 as the auction fee (whether or not the property sells), plus one to two per cent commission if the property sells. Besides this, there are also legal fees for the paperwork. This isn’t substantially higher than selling the traditional way, where one to two per cent is the normal commission rate anyway.

Buyers can register online for auctions with the various agencies, usually at no cost; but make sure you have the funds prepared, as the auctioneer or agency will explain.

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