Number Of Repossessed Properties Rises 18% In Q1

Source : Channel NewsAsia, 27 March 2009

The number of repossessed properties put up for sale by banks and financial institutions in Singapore rose by 18 per cent in the first three months of 2009 compared to the previous quarter.

A total of 53 properties were repossessed in the first quarter of 2009, up from 45 in the previous quarter.

Real estate consultancy firm Colliers International said its findings indicate a continued trend in mortgagee sale as a result of the worsening economy and rising level of retrenchments.

It expects more properties to be repossessed in the later part of the year or in 2010.

Of the 53 properties put up for mortgagee sale in the first three months of this year, 41 were residential properties. And among those, 27 were apartments, with the remaining 14 being landed homes.

Colliers said 12 properties were sold at auctions in the first quarter, with a total sale value of over S$17 million, over two times more than what was recorded in the fourth quarter of 2008. They included seven mortgagee sales and five owner sale transactions.

Colliers said auctions would remain popular with owners, going forward. It also expects a greater number of high-end and luxury properties to be placed for sale via auctions. - CNA/yt