Mortgagee sales may not spike just yet, with robust Singapore rentals a cushion for rate shocks

THE property market may not see a surge in mortgagee sales just yet, as strong residential rentals could cushion interest rate shocks for owners, say agencies.

“The rental market is still very strong, the impact may only be felt from next year,” said Edmund Tie’s head of auction Joy Tan. Private condominium rentals have been marching upwards steadily for 17 straight months. In May, they were 18 per cent higher year on year, after rising 2.8 per cent from the month before, according to data from 99-SRX which tracks the market monthly.

That said, muted results were seen in the auction market in June. Marketing agents Edmund Tie and Knight Frank each sold 1 property under the hammer during their auctions on June 22 and June 29 respectively. Both were mortgagee sales.