Crafty buyers on the lookout for cheap homes at property auctions

More homes will be auctioned off this year.

Crafty property buyers are turning to auctions in search of bargain homes.

According to a report by Knight Frank, buyers could be taking advantage of the lacklustre sentiment and actively participating in auctions to scour for potential value-buys.

“They will be spoilt for choice with the potential increase in properties offered for auction. The stigma of selling properties at low prices in auctions is eroding,” stated Knight Frank.

Knight Frank expects more properties to be put up for auction in 2015 as owners struggle to cope with mortgage loans.

“As the demand for residential properties in the secondary market have been relatively weak over these few quarters which could potentially result in more mortgage defaults, more of such residential units are likely to be made available on the auction market,” the report noted.

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