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Property auctions, mortgagee sales seen surging in 2023 on rising bankruptcies

Ry-Anne Lim

Published Tue, Jan 31, 2023 · 08:31 PM

MORE Singapore properties are likely to go under the hammer in the coming year, by up to 40 to 50 per cent, as an increasing number of property owners come under pressure.

Bankruptcy petitions are on the rise amid interest rate hikes, growing inflationary pressures and the expiry of pandemic support measures for borrowers, noted real estate consultancy Knight Frank in its latest report on the auctions market.

Data from the Ministry of Law showed that a total of 3,380 applicants filed for bankruptcy between January and November 2022, up 7 per cent from the 3,160 applications filed for the whole of 2021.

The escalating interest rates might also make some private homeowners “uncomfortable enough” to sell their properties at a reduced price, especially if margins on their rental income begin to “compress”…