In the current quarter, more properties which were repossessed from borrowers were put up for auction, said media reports.
According Colliers International, 42 foreclosed properties went under the hammer in Q2 2014, up from 22 in the first quarter and just six a year ago.
This figure is also expected to increase further due to the growing supply of non-landed private homes, which will make it difficult for borrowers to sell their properties by themselves, resulting in mortgagee sales.
The lower number of expatriates coming here is also affecting rental incomes and borrowers’ ability to repay their loans.
The mortgagee sale in Q2 2014 is the highest since the third quarter of 2009, when 63 properties were put up for auction. The 64 properties sold in the first half of the year also exceed the total tally in 2012, when 24 properties were disposed in this manner.
In comparison, the number of properties auctioned off by owners fell to 192 in first half of the year versus 226 in H1 2013.
Consequently, the share of mortgagee sales climbed to 25 percent in H1 2014 from 6.6 percent for the whole of 2013.
The mortgagee sales’ share also doubled to 33.9 percent in Q2 2014 from 16.7 percent in the previous quarter. This is also largest percentage since Q1 2008, when mortgagee sales accounted for 35.5 percent of the transactions.
Colliers’ data was based on the sales lists of major auction houses as of 19 June.