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Mortgagee sale properties double in Q2

Posted on 25 Jun 2014 | Comments Off

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.

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Posted in Auction, Property Market / Real Estate

Tagged Auction, lower number of expatriates, Mortgagee Sale, non-landed private homes, rental incomes

Property auctions market sputters along

Posted on 29 Jun 2012 | Comments Off

Singapore’s property auction market saw a subdued start to the year due to the effects of the additional buyer’s stamp duty (ABSD).

Of the 198 properties put up for auction in H12012, 191 were listed by owners while seven were put up by mortgagees.

“This continues the trend of declining mortgagee listings since Year 2007, which reflects the improved financial position of mortgagors on the back of the continued low interest rate and high liquidity environment, as well as a healthy rental market,” according to Colliers International.

But from the total number of listed properties, only 10 were sold achieving a total sale value of S$34.3 million, the second lowest figure since the 2008 global financial crisis.

The value is 50.5 percent below the S$69.25 million recorded from 33 properties auctioned in the same period last year.

Nevertheless, the total sale value remained 30.1 percent higher than the S$26.37 million seen in H22011.

“While there is a substantial 30.1 percent increase in the total sale value in H12012, it is largely attributed to the sale of a petrol station along Jalan Ahmad Ibrahim, which was sold for S$12.73 million,“ said Grace Ng, Deputy Managing Director at Colliers International.

Meanwhile, Jones Lang LaSalle (JLL) reported that the value proportion of commercial and industrial properties auctioned in H12012 to date saw a new three-year high of 78 percent compared to 32 percent in H12010.

“This has come off the back of a sustained, and some may feel worrying, “herd-mentality” shift in investor interest toward the non-residential sector,” noted JLL.

However, the total value of residential properties sold during auctions stood at 22 percent in H12012, down from 28 percent in H12011 and 61 percent in H12010.

In the near future, the attractiveness of the non-residential sector could be reduced “given the elevated level of policy risk and clustering of investors into the sector”.

Source : PropertyGuru – 2012 Jun 28