More repossessed homes up for auction

Singapore’s weak property market saw the number of homes put on auction by banks increase significantly, reported the media.

From January to October this year, 131 properties of all types were put on sale through auction by lenders or mortgagees, up from last year’s 25 properties, figures from Colliers International show.

Of these, 98 homes were put up for auction by mortgagees — an increase from the 14 homes put up for auction over the same period last year.

Analysts attribute the increase to cautious buyers which make it difficult for borrowers in default to sell their properties on their own.

An auction by Colliers last week featured two 1,926 sq ft units at The Laurels in Cairnhill Road (pictured), while an auction by Knight Frank listed a 1,755 sq ft unit at Botanic Gardens Mansion in Tanglin.

On the other hand, fewer suburban apartments are showing up in mortgagee sales, said Grace Ng, Deputy Managing Director at Colliers International. The units’ lower overall price means that owners can service their loans with less difficulty and find buyers in case they default, added Ng.

Overall, 19 mortgagee properties have been sold for $29.6 million in the first ten months of the year.

Looking ahead, Ng expects the number of mortgagee sale properties to increase to 160 to 170 this year, an increase from last year’s 32 but still lower than 2009’s 195 and 2008’s 270 mortgagee sale properties.

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