Singapore sees record high fresh mortgagee sales listings in Q2: Knight Frank

A RECORD high in fresh mortgagee sale listings was seen in the second quarter in Singapore when 31 fresh mortgagee sale listings came up in auctions, according to data compiled by Knight Frank.

The residential sector led in the number of fresh listings (21 units), followed by the industrial sector (six units), while the office and the shops and shophouses sectors each contributed two units.

Despite the lower mortgagee sale success rate of 6.6 per cent in Q2 as compared to 10 per cent in the first quarter, the value of mortgagee sales surged 105.9 per cent from a quarter ago to S$12.1 million, representing 81.7 per cent of total auction sales.

Including repeat listings, 61 properties were tabled for mortgagee sales, with districts 15 and 19 each contributing 15 per cent or more to mortgagee listings.

The total 185 properties put up for auction in Q2 represent a 31.2 per cent quarter-on-quarter increase but was a mild 0.5 per cent more than a year ago.

Seven properties went under the hammer. Despite the low overall success rate of 3.8 per cent, total sales value jumped 54.1 per cent from a quarter ago or 48.4 per cent from a year ago to S$14.81 million.

But for the first half of 2016, the S$24.43 million worth of transactions represent a 46.7 per cent decline from the same period last year.

Knight Frank said that this could be attributed to more properties being sold before or after auction.

"Amid a tepid residential leasing market as well as weak retail sentiments, the residential and shops and shophouses sectors are likely to continue forming the bulk of the properties put up for auction in the remaining months of 2016," Knight Frank added.

A trend divergence could be seen in mortgagee sale listings for prime districts' residential units and that for landed properties.

The number of residential properties in the prime districts of 1, 9, 10 and 11 that are listed for auction amounted to 21 units, the lowest since Q2 2014. Among these, seven units came under mortgagee sale listing.

On the other hand, the number of landed properties listed for mortgagee sale makes up half of the total 34 landed properties put up for auction - this proportion is a record high. The 17 landed properties on mortgagee sale listings represent a 142.9 per cent surge from a year ago.

But all prime properties put up for auction in Q2 were withdrawn.