reporter2
20-07-22, 10:50
Mortgagee sales may not spike just yet, with robust Singapore rentals a cushion for rate shocks
Jul 10, 2022
THE property market may not see a surge in mortgagee sales just yet, as strong residential rentals could cushion interest rate shocks for owners, say agencies.
“The rental market is still very strong, the impact may only be felt from next year,” said Edmund Tie’s head of auction Joy Tan. Private condominium rentals have been marching upwards steadily for 17 straight months. In May, they were 18 per cent higher year on year, after rising 2.8 per cent from the month before, according to data from 99-SRX which tracks the market monthly.
That said, muted results were seen in the auction market in June. Marketing agents Edmund Tie and Knight Frank each sold 1 property under the hammer during their auctions on June 22 and June 29 respectively. Both were mortgagee sales.
A 6-bedroom corner terrace house at Villa Verde with a land area of 2,634 square feet (sq ft) was sold for S$2.3 million at Edmund Tie’s auction. The mortgagee sale was 1 of 9 properties put up for auction, including a 4-bedroom bungalow at Ocean Drive with a guide price of S$21 million and a duplex 3-bedroom penthouse unit auctioned at a guide price of S$8 million.
Knight Frank also moved 1 mortgagee sale property, a 3-bedroom apartment at Reflections at Keppel Bay spanning 1,367 sq ft which sold for S$2.65 million, slightly higher than its opening bid of S$2.55 million. It was among Knight Frank’s 12 properties comprising 5 mortgagee sales, 5 owner sales, 1 estate and 1 sheriff sale put up for auction.
The priciest in the list were freehold 2-storey semi-detached houses at Jalan Belangkas and Mayflower Rise at the opening prices of S$5.2 million and S$4.96 million respectively.
There were 4 commercial units auctioned by Knight Frank last month, including food and beverage (F&B) shops at Icon @ Pasir Panjang and Sim Lim Square opening at S$5.5 million and S$4.2 million respectively.
The only industrial property up for auction on June 29 was a 1,862 sq ft corner ramp-up B2 factory at Woodlands Industrial Park with a guide price of S$590,000.
According to Knight Frank’s head of auctions Sharon Lee, most of its old mortgagee listings have been sold, while fresh listings are “equally moving and in demand”.
In its first quarter update on the auctions market, released end-April, Knight Frank noted that mortgagee auction listings rose 23.7 per cent in Q1 2022, after falling for 4 consecutive quarters. Some 47 properties - both residential and commercial - were listed under mortgagee sales, making up 58.8 per cent of the quarter’s auctions.
The first quarter tally, however, was 59.8 per cent lower compared to Q1 2021’s 117 mortgagee listings. Residential mortgagee listings fell to 21 units, from 56 in the year-ago period, even as interest rates continued on their upward path in the first quarter.
“Broad-based rental improvement, especially in the private residential market, possibly provided distressed owners with the means to cover their current mortgage instalments, contributing to restraint being observed by banks in foreclosing residential properties. During the quarter, residential assets were also quick to be picked up by some auction bidders,” Knight Frank said at the time.
https://i.imgur.com/4bZrk3L.png
https://www.businesstimes.com.sg/real-estate/mortgagee-sales-may-not-spike-just-yet-with-robust-singapore-rentals-a-cushion-for-rate
Jul 10, 2022
THE property market may not see a surge in mortgagee sales just yet, as strong residential rentals could cushion interest rate shocks for owners, say agencies.
“The rental market is still very strong, the impact may only be felt from next year,” said Edmund Tie’s head of auction Joy Tan. Private condominium rentals have been marching upwards steadily for 17 straight months. In May, they were 18 per cent higher year on year, after rising 2.8 per cent from the month before, according to data from 99-SRX which tracks the market monthly.
That said, muted results were seen in the auction market in June. Marketing agents Edmund Tie and Knight Frank each sold 1 property under the hammer during their auctions on June 22 and June 29 respectively. Both were mortgagee sales.
A 6-bedroom corner terrace house at Villa Verde with a land area of 2,634 square feet (sq ft) was sold for S$2.3 million at Edmund Tie’s auction. The mortgagee sale was 1 of 9 properties put up for auction, including a 4-bedroom bungalow at Ocean Drive with a guide price of S$21 million and a duplex 3-bedroom penthouse unit auctioned at a guide price of S$8 million.
Knight Frank also moved 1 mortgagee sale property, a 3-bedroom apartment at Reflections at Keppel Bay spanning 1,367 sq ft which sold for S$2.65 million, slightly higher than its opening bid of S$2.55 million. It was among Knight Frank’s 12 properties comprising 5 mortgagee sales, 5 owner sales, 1 estate and 1 sheriff sale put up for auction.
The priciest in the list were freehold 2-storey semi-detached houses at Jalan Belangkas and Mayflower Rise at the opening prices of S$5.2 million and S$4.96 million respectively.
There were 4 commercial units auctioned by Knight Frank last month, including food and beverage (F&B) shops at Icon @ Pasir Panjang and Sim Lim Square opening at S$5.5 million and S$4.2 million respectively.
The only industrial property up for auction on June 29 was a 1,862 sq ft corner ramp-up B2 factory at Woodlands Industrial Park with a guide price of S$590,000.
According to Knight Frank’s head of auctions Sharon Lee, most of its old mortgagee listings have been sold, while fresh listings are “equally moving and in demand”.
In its first quarter update on the auctions market, released end-April, Knight Frank noted that mortgagee auction listings rose 23.7 per cent in Q1 2022, after falling for 4 consecutive quarters. Some 47 properties - both residential and commercial - were listed under mortgagee sales, making up 58.8 per cent of the quarter’s auctions.
The first quarter tally, however, was 59.8 per cent lower compared to Q1 2021’s 117 mortgagee listings. Residential mortgagee listings fell to 21 units, from 56 in the year-ago period, even as interest rates continued on their upward path in the first quarter.
“Broad-based rental improvement, especially in the private residential market, possibly provided distressed owners with the means to cover their current mortgage instalments, contributing to restraint being observed by banks in foreclosing residential properties. During the quarter, residential assets were also quick to be picked up by some auction bidders,” Knight Frank said at the time.
https://i.imgur.com/4bZrk3L.png
https://www.businesstimes.com.sg/real-estate/mortgagee-sales-may-not-spike-just-yet-with-robust-singapore-rentals-a-cushion-for-rate