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RESIDENTIAL PROPERTY | Staff Reporter, Singapore
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Going once, going twice: More prime homes go under the hammer as owners go bust

The stock market selldown will spur more listings.

An auction is the place to be for deep-pocketed investors looking to snap up cheap prime homes in Singapore.

More luxury homes were listed for auction in 2015 as the global economy wobbled, according to latest data released by DTZ. The number of properties listed for mortgagee sale nearly doubled to 87 units in 2015, compared to just 47 units in 2014. In addition, the number of properties listed for owners’ sale also surged to 135 properties last year from just 77 properties in 2014.

DTZ blamed the surge on Singapore’s slowing economy and the softening leasing market, which has led to staff cuts and caused some homeowners to encounter difficulty in financing their mortgages.

Additionally, there were more landed properties and large apartments listed for auction in 2015. The number of landed properties listed for auction rose from 39 units in 2014 to 53 units in 2015, while the number of apartments with strata area above 2,000 sq ft increased to 40 apartments from 17 units in 2014.

The report added that there will be more choice homes in the market as investors dump stocks in response to continued weakness in the economies of China and Japan.
“Sudden shocks in the equity markets tend to be a precursor for more auction listings, as owners need to adjust their financial position. This will offer prospective home buyers a window of opportunity to acquire homes at reasonable prices,” said Lee Naijia, DTZ’s Head of SEA Research.
 

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