The number of landed properties put up for mortgagee sale rose by 142 percent from last year.
The number of residential properties put up for auction increased by 21.2 percent quarter-on-quarter to 103 units in Q2 2016, according to a Knight Frank report.
While the sector accounted for the bulk of auction listings in the second quarter (185 units), Knight Frank observed a lack of transactions in the prime residential segment.
In fact, the number of residential properties put up for auction in districts 1, 9, 10 and 11 amounted to just 21 units, the lowest since Q2 2014.
Of these, seven units were put up for auction under mortgagee sale. This made up 16.3 percent of the total number of residential properties put up for mortgagee sale (43 units), down from 30.8 percent in Q1 (12 out of 39 units).
“However, this is an improvement from the 15.6 percent seen in Q2 2015 (five out of 32 units),” said Knight Frank.
Meanwhile, the number of landed properties put up for mortgagee sale as a proportion of all landed properties put up for auction reached a record high of 50 percent (17 out of 34 units).
Notably, the total number of landed properties placed under the hammer rose by 6.2 percent quarter-on-quarter, but dropped by 19 percent year-on-year.
The number of landed properties put up for auction under mortgagee sale, on the other hand, soared by 54.5 percent quarter-on-quarter and by 142.9 percent year-on-year.
However, Knight Frank noted that only one of the 17 landed properties put up for auction under mortgagee sale was located within the prime districts (5.9 percent).
This is way below the 27.3 percent registered in Q1 this year, when three out of 11 landed properties were from the prime districts, and 14.3 percent in Q2 2015 (one of seven landed properties).
Knight Frank revealed that the number of non-prime landed properties put up for auction under mortgagee sale was the highest in Q2 2016 at 16 units.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
