The number of mortgagee listings in the Singapore auction market has reached a new record high in the first half of the year.
According to the latest figures from Knight Frank, a total of 173 properties were put up for auction under mortgagee sale, representing a 43 percent increase from 121 units in the previous six-month period and a 41.8 percent jump from 122 units in 1H16.
In total, there were 10 units under the mortgagee sale that went under the hammer in the latest period, translating into a sales value of S$15.96m, down from the 11 units at S$17.97m transacted in the same period last year.
During the first half of this year, the total number of properties put up for auction declined slightly by 0.6 percent to 353 units, from the 355 units during the preceding six-month period. However, this represented a 0.8 percent increase on a yearly basis, from 327 units auctioned in the same period last year.
Overall, a total of 18 properties were sold in 1H17, registering a 28% decrease from 25 properties transacted in the preceding period. Total sales value for the past period declined 34.6 percent from S$68.37m in 2H16 to S$44.74m. Compared to the same period in 2016, 1H17 sales were up significantly by 83.1 percent from S$24.43m.
Knight Frank pointed out to the growing trend in the industrial sector, which witnessed further increase in the number of properties put up for auction, up to 89 industrial units. This is a 93.5 percent compared to last year. However, only five of these properties were translated into a sale, reaching a value of S$2.68m.
Meanwhile, the residential sector remained as the major contributor to the number of properties put up for auction despite the decline in the number of units to 181, a 6.7 percent dip from a strong 194 units in 2H16. Eleven of Sentosa Cove properties were put up for auction but not one translated into a sale. Only 12 residential units were transacted in the period, reflecting a S$36.83m worth of sales.
Knight Frank Director and Head of Auction Sharon Lee said the number of properties put up for auction in 2017 is likely to remain unchanged from 2016, with a confluence of a modest economic outlook and rising interest rates set against a gradual recovery in demand for residential properties from both local and foreign property buyers
"We've noticed an increase in attendance at auctions conducted in H1, indicating a growing interest from buyers looking to auctions for opportunities both to sell and purchase the property. In particular, the availability of landed properties and homes in sought after prime locations like District 9 have drawn crowds and led to successful transactions thus far in 2017," she said in a statement to the media.