New Reporter
03-05-23, 11:40
Distressed property listings jump in Q1 as bankruptcies rise
Apr 24, 2023
THE number of mortgagee listings jumped in the first quarter (Q1) of 2023, with more distress sales expected in the second half of the year as bankruptcy applications increase.
The number of bankruptcy applications rose quarter on quarter by 5.6 per cent to 959 in Q1 2023, according to data from the Ministry of Law. It is also 22.2 per cent higher than the number of applications in Q1 2022.
Both Knight Frank and Edmund Tie, which hold auctions every month, saw higher numbers of mortgagee listings in the first three months of the year.
Mortgagee listings at auctions conducted by Knight Frank more than trebled to 32 in Q1 2023 from 10 in the previous quarter. However, this was still a decrease from the 47 listings in Q1 2022.
Residential mortgagee listings more than doubled to 18 from the previous quarter, although they were still 14.3 per cent lower than the 21 in Q1 2022. A non-landed home located in St Regis Residences was listed for receiver sale for two consecutive months, and eventually sold outside of auction for S$13.5 million.
Knight Frank’s retail and office mortgagee listings in Q1 also increased to four and three, respectively, from no listings in the previous quarter. Meanwhile, industrial listings more than trebled to seven from the last quarter. Knight Frank attributed the increase to a tougher business climate and rising interest rates which it said has made business continuity challenging.
Of the 32 listings, six were knocked down and consisted of properties that were small quantum listings, with transactions ranging from S$350,000 to S$1.1 million. Most were knocked down either at a discount or close to their opening price, said Knight Frank. Only one, an office unit in Paya Lebar Square, was sold at 1.8 per cent higher than the opening bid of S$1 million, at S$1.1 million.
Knight Frank’s 18.8 per cent success rate for the quarter was a fall from the 30 per cent success rate last quarter, but still a rise from 10.6 per cent in the year-ago period.
At Edmund Tie, mortgagee listings nearly doubled to 28 in Q1 2023, from 15 in the previous quarter. Half of the listings were residential, an increase from 10 in the last quarter. However, this was still a decrease from 30 in Q1 2022.
The company’s retail and office listings also saw an increase from none in the previous quarter to two and five, respectively. Retail listings saw a year on year fall from 12 in Q1 2022, but office listings increased from three the previous year. Industrial listings also saw a rise to seven from five in the last quarter, although still lower than the 11 listings in Q1 2022.
Edmund Tie noted that three industrial units at Yishun and Tuas of 1,755 square feet (sq ft), 1,808 sq ft and 2,443 sq ft were sold for S$440,000, S$460,000 and S$350,000, respectively. Meanwhile, two residential apartments of 463 sq ft and 624 sq ft were sold for S$790,000 and S$955,000, respectively. A 506 sq ft office unit in Paya Lebar was also sold for S$1.1 million.
Edmund Tie’s head of auction and sales Joy Tan said most buyers are adopting a wait-and-see approach due to high interest rates and the expected increase in public and private residential supply this year.
“Hence, activities in the auction market are expected to only pick up pace in the second half of the year, when buyers and sellers adjust their expectations accordingly, following a clearer sense of the market,” Tan said.
Knight Frank’s Q1 report said more business owners might find it challenging to keep their businesses above water, and the firm expects to see more mortgagee listings in the second half, “especially for workplace properties”.
https://www.businesstimes.com.sg/property/distressed-property-listings-jump-q1-bankruptcies-rise
Apr 24, 2023
THE number of mortgagee listings jumped in the first quarter (Q1) of 2023, with more distress sales expected in the second half of the year as bankruptcy applications increase.
The number of bankruptcy applications rose quarter on quarter by 5.6 per cent to 959 in Q1 2023, according to data from the Ministry of Law. It is also 22.2 per cent higher than the number of applications in Q1 2022.
Both Knight Frank and Edmund Tie, which hold auctions every month, saw higher numbers of mortgagee listings in the first three months of the year.
Mortgagee listings at auctions conducted by Knight Frank more than trebled to 32 in Q1 2023 from 10 in the previous quarter. However, this was still a decrease from the 47 listings in Q1 2022.
Residential mortgagee listings more than doubled to 18 from the previous quarter, although they were still 14.3 per cent lower than the 21 in Q1 2022. A non-landed home located in St Regis Residences was listed for receiver sale for two consecutive months, and eventually sold outside of auction for S$13.5 million.
Knight Frank’s retail and office mortgagee listings in Q1 also increased to four and three, respectively, from no listings in the previous quarter. Meanwhile, industrial listings more than trebled to seven from the last quarter. Knight Frank attributed the increase to a tougher business climate and rising interest rates which it said has made business continuity challenging.
Of the 32 listings, six were knocked down and consisted of properties that were small quantum listings, with transactions ranging from S$350,000 to S$1.1 million. Most were knocked down either at a discount or close to their opening price, said Knight Frank. Only one, an office unit in Paya Lebar Square, was sold at 1.8 per cent higher than the opening bid of S$1 million, at S$1.1 million.
Knight Frank’s 18.8 per cent success rate for the quarter was a fall from the 30 per cent success rate last quarter, but still a rise from 10.6 per cent in the year-ago period.
At Edmund Tie, mortgagee listings nearly doubled to 28 in Q1 2023, from 15 in the previous quarter. Half of the listings were residential, an increase from 10 in the last quarter. However, this was still a decrease from 30 in Q1 2022.
The company’s retail and office listings also saw an increase from none in the previous quarter to two and five, respectively. Retail listings saw a year on year fall from 12 in Q1 2022, but office listings increased from three the previous year. Industrial listings also saw a rise to seven from five in the last quarter, although still lower than the 11 listings in Q1 2022.
Edmund Tie noted that three industrial units at Yishun and Tuas of 1,755 square feet (sq ft), 1,808 sq ft and 2,443 sq ft were sold for S$440,000, S$460,000 and S$350,000, respectively. Meanwhile, two residential apartments of 463 sq ft and 624 sq ft were sold for S$790,000 and S$955,000, respectively. A 506 sq ft office unit in Paya Lebar was also sold for S$1.1 million.
Edmund Tie’s head of auction and sales Joy Tan said most buyers are adopting a wait-and-see approach due to high interest rates and the expected increase in public and private residential supply this year.
“Hence, activities in the auction market are expected to only pick up pace in the second half of the year, when buyers and sellers adjust their expectations accordingly, following a clearer sense of the market,” Tan said.
Knight Frank’s Q1 report said more business owners might find it challenging to keep their businesses above water, and the firm expects to see more mortgagee listings in the second half, “especially for workplace properties”.
https://www.businesstimes.com.sg/property/distressed-property-listings-jump-q1-bankruptcies-rise