Important rules to find good bargains at auctions
January 13, 2017
Auction sale of properties are on the rise in a lackluster market plagued by slow rental and high vacancy. With a worsening economy, both auction properties and mortgagee sales are expected to flourish in 2017.
A mortgagee sale happens when the owner of the property defaults on mortgage payment. The mortgage bank then steps in to repossess the property and put it up at auctions for sale.
Knight Frank Singapore saw mortgagee listings of 243 units in 2016 at a 5-year record high. Out of the total, 68 percent are residential properties.
Knight Frank revealed that most mortgagee listings were properties in the core central region, followed by the city fringe. It is not surprising given the predominance of investment properties, oversupply of new units, declining rental prices and higher mortgage payment in the prime residential market.
Under this cyclical property downturn, the total number of properties put up for auction under mortgagee sale is expected to cross the 250-unit mark in 2017. JLL Singapore also predicts that mortgagee sales will increase by 10 to 20 percent this year.
Properties to look out for in auctions
Auction houses in Singapore market all different types of properties, including residential properties (landed houses and apartments) and commercial properties (factories, shophouses, strata offices and shops, and development sites).
Sharon Lee, Director & Head of Knight Frank Auction, listed several types of properties that are suitable to sell at auctions... read more