Mortgagee listings in Singapore look set to hit a seven-year high by the end of 2015. According to property services firm Colliers International, 241 repossessed properties were put up for auction this year, up by almost 52 per cent from 159 in 2014. This is the highest since 2008.
In a media release on Thursday (Dec 17), Colliers International said there were 555 owner listings in the property auction market, bringing the total auction listings for 2015 to a six-year high of 796. In 2014, there were 529 auction listings.
Colliers said the increase was because borrowers in default faced difficulties in selling their properties. Residential properties formed the bulk of listings at 79.6 per cent.
In terms of segments, mortgagee listings for landed homes more than doubled from 19 in 2014 to 50 this year. For non-landed properties, the number rose from 104 to 142 units year-or-year.
Industrial properties took up 14.9 per cent of listings. The number of such properties listed also jumped from 17 in 2014 to 36 this year.
Despite the increase, Colliers said the numbers are still lower than during the Asian Financial Crisis in 1998 and the Global Financial Crisis in 2008. Looking to 2016, the real estate services company estimates the number of mortgagee sales to continue pushing higher and exceed 270, as higher interest rates will add further strain on borrowers struggling to finance their mortgages.
Source : Channel NewsAsia – 17 Dec 2015