reporter2
31-03-14, 18:43
http://www.straitstimes.com/archive/saturday/premium/money/story/mortgagee-sale-auctions-first-quarter-hit-three-year-high-20140329
Mortgagee sale auctions in first quarter hit three-year high
Published on Mar 29, 2014
By Ivan Teo
THE number of auctions for mortgagee sales hit a three-year high in the first quarter of the year, according to property consultancy Colliers International.
It reported yesterday that 22 properties were put up for auction in the three months to March 31, up from 10 in the same period last year.
This is the highest since the third quarter of 2010, when 25 mortgagee sales went under the hammer. About 68 per cent of the properties this quarter were residential units. The rest were in the retail and industrial sectors.
Mortgagee sales occur when an owner defaults on mortgage payments and the lender sells the property.
Only four of the 22 auctions resulted in sales, reaping $8.11 million in all.
Colliers noted that the increased additional buyer's stamp duty in January last year and the total debt servicing ratio imposed in June last year have led to a substantial decrease in buying interest.
Ms Grace Ng, deputy managing director of Colliers International, said the measures have led to the increase in the number of properties put up for mortgagee sales as owners who are unable to keep up with repayments struggle to find buyers.
Sales in the secondary residential property market have been falling since 2010.
There were 7,680 private home resales last year, well down on the 15,676 units transacted in 2012 and the 16,736 in 2011.
Colliers also noted that there were five high-end homes put up for mortgagee sales this quarter, compared with six for all of 2013.
High-end homes are those valued at over $2.5 million and less than five years old.
Colliers projects the number of properties put up for mortgagee sales will continue to increase this year, particularly in high-end residential and retail sectors. This is because buyers are cautious in anticipation of falling prices brought on by cooling measures and an expected increase in the property supply.
Colliers expects the total sale value for the auction market to come in at between $70 million and $80 million this year, a decrease of around 13 to 24 per cent on last year. The value recorded last year was high due to the sale of four pricey properties, valued at $70.1 million in total.
[email protected]
Mortgagee sale auctions in first quarter hit three-year high
Published on Mar 29, 2014
By Ivan Teo
THE number of auctions for mortgagee sales hit a three-year high in the first quarter of the year, according to property consultancy Colliers International.
It reported yesterday that 22 properties were put up for auction in the three months to March 31, up from 10 in the same period last year.
This is the highest since the third quarter of 2010, when 25 mortgagee sales went under the hammer. About 68 per cent of the properties this quarter were residential units. The rest were in the retail and industrial sectors.
Mortgagee sales occur when an owner defaults on mortgage payments and the lender sells the property.
Only four of the 22 auctions resulted in sales, reaping $8.11 million in all.
Colliers noted that the increased additional buyer's stamp duty in January last year and the total debt servicing ratio imposed in June last year have led to a substantial decrease in buying interest.
Ms Grace Ng, deputy managing director of Colliers International, said the measures have led to the increase in the number of properties put up for mortgagee sales as owners who are unable to keep up with repayments struggle to find buyers.
Sales in the secondary residential property market have been falling since 2010.
There were 7,680 private home resales last year, well down on the 15,676 units transacted in 2012 and the 16,736 in 2011.
Colliers also noted that there were five high-end homes put up for mortgagee sales this quarter, compared with six for all of 2013.
High-end homes are those valued at over $2.5 million and less than five years old.
Colliers projects the number of properties put up for mortgagee sales will continue to increase this year, particularly in high-end residential and retail sectors. This is because buyers are cautious in anticipation of falling prices brought on by cooling measures and an expected increase in the property supply.
Colliers expects the total sale value for the auction market to come in at between $70 million and $80 million this year, a decrease of around 13 to 24 per cent on last year. The value recorded last year was high due to the sale of four pricey properties, valued at $70.1 million in total.
[email protected]