The spectres of weak economy growth, higher interest rates and higher job cuts may lead to more properties up for auction, says analysts.
Consultancy JLL noted that there have been 214 mortgagee listings so far this year – including 156 residential properties. “We foresee a 10 to 20 per cent increase in mortgagee sales for 2017 compared to this year,” said Ms Mok Sze Sze, head of auction and sales for Singapore at JLL. She expects overall mortgagee listings this year to reach or surpass the 237 recorded in all of 2015, which exceeded the 236 racked up in 2008 during the global financial crisis.
A mortgagee’s sale occurs when an owner defaults on the mortgage and the bank puts the property up for auction.
Mr Lee Nai Jia, head of South-east Asia research at Edmund Tie & Company, said: “I expect the hike in interest rates to be moderate, and its impact will likely be measured. However, the slowing economy and higher job cuts will contribute to an increase in mortgagee sales.”