UNDER THE HAMMER: Mortgagee sales may rise in 2H2019

/ EdgeProp Singapore
January 5, 2019 7:00 AM SGT
More owners are choosing to list their properties on the auction market this year. Including re-listings, the number of properties put up for sale at auctions totalled 1,087 this year (as at Nov 30). This was 35.4% higher than the figure in 2017. According to Colliers International, the figure is the highest recorded since 2008.
From Colliers’ data, the total number of mortgagee listings in 2018 increased to 472, up 27% from 373 in 2017, while the number of owners’ listings increased to 615 in 2018, up 43% from 430 in 2017 (see Chart 1). Owners’ sales, however, fell to 11 in 2018 (to end-November), from 12 transactions in 2017. Mortgagee sales declined to 23 transactions in 2018 (to end-November), from 36 in 2017.

Impact of cooling measures

As with the rest of the property market, demand in the auctions segment was dampened by the property cooling measures in July. This was especially so for one- and two-bedroom unit types, which many investors look out for, says Joy Tan, head of auction and sales at Edmund Tie and Co (ET&Co).
This particular group of investors has “channelled their interest to industrial and commercial properties instead”, says Tricia Song, head of research for Singapore at Colliers International. Consequently, the proportion of residential property listings has contracted, notes Song. In 2017, it was 54%. In 1H2018, the proportion of residential listings was 52%. However, following the property cooling measures, the proportion dropped to 47% (see Chart 2).
Interest in large three- and four-bedroom apartments priced below $2 million remains healthy, says ET&Co’s Tan. Such units appeal mainly to owner-occupiers.

Biggest transactions under the hammer

In the biggest transacted residential deal for the year (see table), a semi-detached house at 25 Pasir Ris Way in the eastern corner of Singapore was sold for $5 million ($505 psf) in May. With a land area of 3,999 sq ft and a built-up area of 9,892 sq ft, the unit attracted 15 bids. The mortgagee sale was brokered by ET&Co.
A semi-detached house at 25 Pasir Ris Way was sold for $5 million ($505 psf) in May (Credit: ET&Co)
The second-largest residential transaction was the sale of a duplex penthouse on the sixth- storey of...