Market heading down.

[oops]

More property owners scrambled to dispose posh assets in Q1.
But number of potential buyers shrunk.

The Singapore auction property market saw the number of properties put up for mortgagee sale increase to 22 in 1Q 2014. This is a relatively high number of mortgagee listings registered for a quarter, considering that there were only an average of 8 mortgagee listings per quarter in 2013 and an average of 6 per quarter in 2012.

Colliers also noted that more high-end residential properties and shop units in older complexes are put up for mortgagee sale.

A total of 132 properties were put up for sale via auction in 1Q 2014, an increase of 10 per cent from the 120 properties recorded in 4Q 2013.

Out of these 132 properties, 110 were put up by owners; of which, many have adopted auction as a complementary mode of sale to indicate their serious intention to sell – on the back of a quiet secondary market. The remaining 22 properties put up for sale were mortgagee listings.

Although the absolute number of mortgagee listings remained low, this is the highest quarterly number of mortgagee sales put up for auction since 4Q 2010. The increased number of mortgagee listings seen in 1Q 2014 could have been the result of a quieter secondary residential property market.

Sales activities in the secondary residential market have been falling for three years since 2010. There were only 7,680 private homes being transacted in the resale market in 2013, which are half the 15,676 units transacted in 2012 and 54.1% per cent lower than 16,736 units in 2011. 

Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, says, “The pool of potential buyers in the resale market has shrunk, making it challenging for owners to dispose their properties in the secondary market when they default on their mortgage payments.

There is also reportedly an increase in the number of bankruptcies.This is a different situation from the period between 2011 and 2012 when the buoyant property market was further boosted by a low interest rate and high liquidity environment.Borrowers who were in default of their loan payments could easily sell their properties in the open market on their own.”

- See more at: http://m.sbr.com.sg/residential-prop....zEatKbNL.dpuf

[Arcachon]

Auction property sales to fall 24% to $80m this year

Buyers to remain cautious.

According to Colliers International, considering the current inertia in the property market, it is expected that the number of properties put up for mortgagee sale will continue to increase, particularly in the high-end residential and retail sectors. Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, said “Affordability will still be the main concern among buyers. Buyers will continue to look for affordably-priced properties such as those below S$1.5 million.

Although buyers are expected to remain cautious – in light of the impending interest rates increase and the potential upcoming supply, which will put pressure on prices – sales activity is expected to pick up over the next two quarters, as both buyers and sellers gradually adjust their expectations to work towards market equilibrium.”

She concludes, “The total sale value for the Singapore auction property market is expected to come in at between S$70 million and S$80 million for the whole of 2014, a decrease of some 13-24 per cent from the total sales value in 2013.”

- See more at: http://sbr.com.sg/residential-proper....60ja5LmG.dpuf

http://sbr.com.sg/residential-proper...ll-24-80m-year

[teddybear]

Afford at >=$1500 psf 99LH in some OCR region as long as <S$1.5m?

Auction property sales to fall 24% to $80m this year

Buyers to remain cautious.

According to Colliers International, considering the current inertia in the property market, it is expected that the number of properties put up for mortgagee sale will continue to increase, particularly in the high-end residential and retail sectors. Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, said “Affordability will still be the main concern among buyers. Buyers will continue to look for affordably-priced properties such as those below S$1.5 million.

Although buyers are expected to remain cautious – in light of the impending interest rates increase and the potential upcoming supply, which will put pressure on prices – sales activity is expected to pick up over the next two quarters, as both buyers and sellers gradually adjust their expectations to work towards market equilibrium.”

She concludes, “The total sale value for the Singapore auction property market is expected to come in at between S$70 million and S$80 million for the whole of 2014, a decrease of some 13-24 per cent from the total sales value in 2013.”

- See more at: http://sbr.com.sg/residential-proper....60ja5LmG.dpuf

http://sbr.com.sg/residential-proper...ll-24-80m-year

[oops]

Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, says, “The pool of potential buyers in the resale market has shrunk, making it challenging for owners to dispose their properties in the secondary market when they default on their mortgage payments.

There is also reportedly an increase in the number of bankruptcies.This is a different situation from the period between 2011 and 2012 when the buoyant property market was further boosted by a low interest rate and high liquidity environment.Borrowers who were in default of their loan payments could easily sell their properties in the open market on their own.”

[teddybear]

Quick Crash!

Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, says, “The pool of potential buyers in the resale market has shrunk, making it challenging for owners to dispose their properties in the secondary market when they default on their mortgage payments.

There is also reportedly an increase in the number of bankruptcies.This is a different situation from the period between 2011 and 2012 when the buoyant property market was further boosted by a low interest rate and high liquidity environment.Borrowers who were in default of their loan payments could easily sell their properties in the open market on their own.”

[hopeful]

should we buy more instead?

like in 2010-2012, analysts were predicting yet market go different direction.
now analysts predicting market going up, so shouldnt people buy more now?

i wonder whether the guarantee still stands?
http://forums.condosingapore.com/sho...8&postcount=11
http://forums.condosingapore.com/sho...7&postcount=13

[Werther]

should we buy more instead?

like in 2010-2012, analysts were predicting yet market go different direction.
now analysts predicting market going up, so shouldnt people buy more now?

i wonder whether the guarantee still stands?
http://forums.condosingapore.com/sho...8&postcount=11
http://forums.condosingapore.com/sho...7&postcount=13

Maybe bro indomie is busy buying up now? Or he is holding many units then..

[4wheels]

where can we find those units on auction? Their auction price and other information?

[LawrenceOng]

I am also keen to find out how do we discover these properties on auction. Very interesting to see one in action

Are there any links to this?

Thanks!

[hopeful]

I am also keen to find out how do we discover these properties on auction. Very interesting to see one in action

Are there any links to this?

Thanks!

go the real estate agencies website, subscribe to mailing list.
eg from KF singapore.
http://www.knightfrank.com.sg/singap...tion-property/

Key contacts

Sharon Lee
Director & Head
T: +65 6228 6891
CEA Reg No R027845B

[LawrenceOng]

go the real estate agencies website, subscribe to mailing list.
eg from KF singapore.
http://www.knightfrank.com.sg/singap...tion-property/

Key contacts

Sharon Lee
Director & Head
T: +65 6228 6891
CEA Reg No R027845B

Thanks a lot hopeful!

Will go check them out

[indomie]

Maybe bro indomie is busy buying up now? Or he is holding many units then..

My last 2 buy is in Sydney and Jakarta. For SG you have to be seriously cash rich to buy. For foreigner like me I have to prove that I have an equal amount of money in deposit for the loan that I want to borrow. So if I want to borrow 1 million dollar for a home loan. I must show the bank that I have a million dollar too. So less motivation to buy sg property now.

Having said that, there is no way that I ever want to sell my sg property. Now the financial requirements is so tall. The new buyers whether they are foreigners or locals are rock solid. Although they are fewer. If a crash should happens, it will happen now. As years goes by, there is less chance of a serious crash. There is no interest only loan in SG. So the principal get paid with time.