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Thread: Property auction sales double to $168.4m

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    Default Property auction sales double to $168.4m

    http://www.businesstimes.com.sg/sub/...66340,00.html?

    Published December 18, 2009

    Property auction sales double to $168.4m

    Number of mortgagee properties put up for auction falls 25%

    By KALPANA RASHIWALA


    THE property auction scene is expected to continue sparkling next year, spurred by interest in the high-end residential market, says Colliers International. It says that the total value of properties sold at auctions may exceed $200 million in 2010, after the figure doubled this year to about $168.4 million from last year's $83.7 million.

    A total of 118 properties were sold at auctions in 2009, again up from last year's 72.

    The residential property was the star performer, accounting for about 52 per cent of total auction sales value.

    Contrary to earlier expectations in some quarters, the number of mortgagee properties put on the auction block fell 25 per cent to 195. The figure includes other forced sales, for instance, by the Inland Revenue Authority of Singapore and management corporations.

    'The low number of mortgagee sales could be due to the introduction of the government's Jobs Credit scheme, which stabilised the employment market. This, in turn, provided some home owners with the ability to service their monthly mortgage loans,' says Grace Ng, Colliers deputy managing director (agency and business services) and auctioneer.

    The number of properties put up for auction by their owners (including trustee sales) rose 10 per cent to 732, further testament to growing acceptance of auctions as a mode of selling property.

    Mok Sze Sze, Jones Lang LaSalle head of auctions, says: 'Owners are attracted by the competitive nature of the auction environment and the high chance of attaining an optimum price for their property.'

    She expects to see more owners putting their properties on the auction block next year and, as the economy continues to improve, a further decrease in the number of mortgagee sales.

    Colliers highlighted a more than 200 per cent jump in the sales value of residential and industrial properties sold at auction this year to $88.4 million and $20 million respectively. Older residential properties with large areas were popular for both landed and non-landed segments.

    The sales value of retail properties transacted at auction rose from $34.6 million last year to $43.4 million.

    This year's auction tally of $168.4 million is about 59 per cent below the peak figures $409.46 million in 1999 and $407.43 million set in 2007.

    Back in 1999, when the private residential property market staged a spectacular recovery after the Asian crisis, 27 per cent of 1,210 properties that went under the hammer were sold at auctions, according to Colliers' analysis. This year, the 118 properties sold made up just 13 per cent of the total 927 properties put on the auction block.

    Colliers' definition of total number of properties put up for auction includes those withdrawn before auction or sold before/after the auction. However, the number sold refers only to those transacted at auction.


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    http://www.straitstimes.com/Money/St...ry_468012.html

    Dec 18, 2009

    Number of mortgagee sales at 12-year low

    By Joyce Teo


    MANY expected to see a surge in the number of home loan defaults, what with the worst recession in Singapore's history and the rising tide of jobless people struggling with mortgage instalments.

    Nothing, it turns out, could be further from the truth. The number of properties put up for mortgagee sale fell to a 12-year low this year, said a report by Colliers International yesterday.

    Only 195 of the 927 properties put up for auction this year were mortgagee sales or forced sales of repossessed properties. This is a 25 per cent drop from the 260 properties last year, it said.

    When banks repossess properties where the homebuyer has defaulted, they invariably choose to sell at auction as that is a fast and transparent mode of sale.

    The latest low figures are a far cry from the situation in 1998 when the Asian financial crisis hit home. A total of 452 properties were put up for mortgagee sale that year, it said.

    'The low number of mortgagee sales could be due to the introduction of the Government's Jobs Credit scheme which stabilised the employment market; which, in turn, provided some home owners with the ability to service their monthly mortgage loans,' said the firm's deputy managing director (agency and business services) Grace Ng.

    'Additionally, buoyant sales experienced in the primary market and a steadily improving economy boosted sentiments in the secondary market, hence enabling owners to dispose of their properties and evading the need for banks to foreclose their properties.'

    The Colliers report said that 118 properties worth $168.39 million were auctioned off this year, slightly more than double the $83.67 million done last year.

    Residential sales at auction this year totalled $88.35 million, up from $25.23 million last year, as upgraders were encouraged by the more positive economic sentiments since March as well as low housing loan rates.

    This year, there was competitive bidding for old semi-detached houses with large land areas, noted Ms Ng.

    The residential sector was the star performer as usual, but the value of non-residential properties auctioned off this year has more than trebled to $101.8 million to date, said another consultancy Jones Lang LaSalle in a statement yesterday.

    Its head of auctions Mok Sze Sze said this can be attributed to the fact that investors are attracted to the higher rental yield from non-residential properties as opposed to a residential one.

    Looking ahead, Ms Ng said more high-value properties are expected to be sold next year, possibly bringing the total value of properties sold at auction to more than $200 million.

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