Auction sales to jump as desperate owners slash asking prices
Residential homes will form bulk of listings.
Singapore's property auction market started the year on a weak note, with the total number of properties down 24.6% year-on-year to 141 units and total sales value down by 11.2% to $9.6 million in Q1.
Despite the poor showing, Knight Frank says that both total number of listings and overall sales value are expected to recover in coming quarters as owners and lenders trim their price expectations.
"[The drop in auction sales] was mainly due to the persistence in bid-ask spread, especially for larger and higher-priced units.With banks and owners further adjusting price expectations, Q2 2016 is likely to see improved auction sales," Knight Frank said.
The report added that more high-end homes are expected to be put up for mortgagee auction as owners struggle to service their debt.
“Landlords who are highly leveraged could be facing difficulties in servicing their mortgage loans amidst the slow leasing market, particularly property owners of higher-priced prime properties. Against the backdrop of anaemic economic growth coupled with the impending threat of interest rate hike, we can expect more properties in [prime] districts to be put up for auction,” Knight Frank said.
Knight Frank expects the residential sector to continue to dominate listings on back of weak leasing demand and higher debt servicing obligations. However, the number of shops and shophouses put up for auction is also likely to continue on an upward trend.
- See more at: http://sbr.com.sg/residential-prope...ners-slash-asking-prices#sthash.2tyB9wu0.dpuf
Residential homes will form bulk of listings.
Singapore's property auction market started the year on a weak note, with the total number of properties down 24.6% year-on-year to 141 units and total sales value down by 11.2% to $9.6 million in Q1.
Despite the poor showing, Knight Frank says that both total number of listings and overall sales value are expected to recover in coming quarters as owners and lenders trim their price expectations.
"[The drop in auction sales] was mainly due to the persistence in bid-ask spread, especially for larger and higher-priced units.With banks and owners further adjusting price expectations, Q2 2016 is likely to see improved auction sales," Knight Frank said.
The report added that more high-end homes are expected to be put up for mortgagee auction as owners struggle to service their debt.
“Landlords who are highly leveraged could be facing difficulties in servicing their mortgage loans amidst the slow leasing market, particularly property owners of higher-priced prime properties. Against the backdrop of anaemic economic growth coupled with the impending threat of interest rate hike, we can expect more properties in [prime] districts to be put up for auction,” Knight Frank said.
Knight Frank expects the residential sector to continue to dominate listings on back of weak leasing demand and higher debt servicing obligations. However, the number of shops and shophouses put up for auction is also likely to continue on an upward trend.
- See more at: http://sbr.com.sg/residential-prope...ners-slash-asking-prices#sthash.2tyB9wu0.dpuf
