The relatively higher total quantum of landed properties, coupled with the implementation of the Total Debt Servicing Ratio (TDSR) framework, have made it increasingly difficult for landed homeowners to service their mortgage payments.
This has in turn resulted in an increasing trend of landed properties being put up for auction, according to Knight Frank’s 1H 2014 Houseview for Auction.
The number of landed properties put up under mortgagee sale has increased by about 66.7 per cent quarter-on-quarter to five units in Q2 2014. Compared to H1 2013, the number of landed properties put up has doubled in H1 2014, which recorded eight units.
The report also showed the number of properties put up for auction has risen by 12.1 per cent year-on-year (y-o-y) to 251 units in H1 2014 compared to 224 units in H2 2013.
With the property cooling measures and the TDSR framework in place, Knight Frank expects more properties to be put up for auction under mortgagee sales in the second half of the year.
Alice Tan, Head of Research at Knight Frank Singapore, said, “In view of the prevailing buyers’ market situation, sellers genuinely keen to dispose their properties should adopt a more realistic pricing strategy as potential buyers await on the sidelines in anticipation of price moderations.”
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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