{"id":111401,"date":"2019-10-07T11:20:14","date_gmt":"2019-10-07T04:20:14","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-singapore-homeowners-defaulting-on-mortgages\/"},"modified":"2019-10-07T12:03:02","modified_gmt":"2019-10-07T05:03:02","slug":"more-singapore-homeowners-defaulting-on-mortgages","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-singapore-homeowners-defaulting-on-mortgages\/","title":{"rendered":"More Singapore homeowners defaulting on mortgages"},"content":{"rendered":"


\nFor the first half of 2019, there were 213 cases of mortgagee sales, compared with 258 for the whole of 2018. The figures are more than double the 123 mortgagee sales registered in 2014.
\nWhile new home launches are witnessing brisk demand in Singapore, the city-state is faced with a growing number of homeowners defaulting on their mortgages.
\nAvenue South Residence sold 276 of the 300 units during its opening day of sales last month, with prices ranging from $982,000 for a one-bedroom unit to $2.63 million for a four-bedroom apartment.
\nCredit Bureau Singapore data, on the other hand, showed that 79 individuals defaulted on their mortgages as of July this year. A total of 156 mortgage defaults were registered last year, up from 112 in 2017 and more than double 2015\u2019s 65 such cases.
\nThe data matches Colliers International Singapore compiled figures on mortgagee sales by major auction houses, reported South China Morning Post.
\nFor the first half of 2019, there were 213 cases of mortgagee sales, compared with 258 for the whole of 2018. The figures are more than double the 123 mortgagee sales registered in 2014.
\nThe houses on auction do not also appear to be selling. Knight Frank data showed that only three properties \u2013 two flats and a shop \u2013 were sold out of its 400 listings, which include residential, industrial and commercial properties, for Q2 2019.
\nThis worked out to a success rate of 0.8 percent, down from 1.4 percent in Q1 2019 and 6.4 percent in Q1 2018.
\nAnalysts attributed the rising trend of defaults to a confluence of factors \u2013 rising unemployment, slowing economy, fewer resale property buyers and lack of tenants.
\nTricia Song, director and head of research at Colliers, also attributed the hike in auction listings to the cooling measures introduced by the government in July last year, in which stamp duty rates were increased and loan-to-value limits were tightened for residential property acquisitions.
\nERA Realty head of research and consultancy Nicholas Mak noted that these troubled homeowners may have over-leveraged themselves during the market peak. \u201cThey may have bought a number of investment properties thinking they could collect rental income to sustain the mortgage once the place is completed, and later found they could not get a tenant.\u201d
\nThat the cooling measures worked, is not a bad thing since it brings safety to the financial markets, said other analysts.
\n\u201c[Singapore] tightened loans by using the Total Debt Servicing Ratio in 2013, and, for the third time, lowered loan limits quite a lot, so those have brought more safety to the market,\u201d said Ku Swee Yong, CEO of real-estate brokerage firm International Property Advisor.
\n\u201cThe government doesn\u2019t want exuberance in real estate because that can be one of the things that choke our banks,\u201d explained Ku. \u201cSo that\u2019s why even though home sales continue to be brisk, loans are not necessarily growing at the same pace as the total number of homes in Singapore.\u201d
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…More Singapore homeowners defaulting on mortgages<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

For the first half of 2019, there were 213 cases of mortgagee sales, compared with...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-111401","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-sYN","jetpack-related-posts":[{"id":116147,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/auction-success-rate-drops-despite-hike-in-mortgagee-sale-listings\/","url_meta":{"origin":111401,"position":0},"title":"Auction success rate drops despite hike in mortgagee sale listings","date":"May 8, 2020","format":false,"excerpt":"\r Singapore saw total auction listings decline 31.1% year-on-year to 235 in the first quarter of 2020, revealed an Edmund Tie report. However, mortgagee sales slightly increased by 2.6% year-on-year to 160 listings. And much like in 2019, the proportion of mortgagee sales significantly increased to 68% in Q1 2020\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":119952,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-auction-market-posted-higher-success-rates-in-2020\/","url_meta":{"origin":111401,"position":1},"title":"Singapore auction market posted higher success rates in 2020","date":"January 26, 2021","format":false,"excerpt":"\r Despite a fall in auction listings from 1,387 in 2019 to 497 in 2020,\u00a0the auction market still posted higher success rates, increasing to 3.6% from 1.4% in the previous year. Singapore saw total auction listings, including repeat listings, for 2020 fell to 495 from 1,387 in 2019 as physical\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/property-auction.jpg?fit=820%2C411&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":112109,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/residential-listings-under-mortgagee-sale-grow-by-14-4-in-q3-2019\/","url_meta":{"origin":111401,"position":2},"title":"Residential listings under mortgagee sale grow by 14.4% in Q3 2019","date":"November 1, 2019","format":false,"excerpt":"\r The growth in residential listings under mortgagee sale was due to added pressures on owners that were overly exposed in the middle of increased volatility in the financial markets.\u00a0 The number of residential listings under mortgagee sale grew in Q3 2019 by 14.4% quarter-on-quarter (QoQ) to 103 listings, making\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":78941,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sentosa-cove-penthouse-up-for-auction\/","url_meta":{"origin":111401,"position":3},"title":"Sentosa Cove penthouse up for auction","date":"February 5, 2018","format":false,"excerpt":"\r The last owner paid $5.64 million, or $1,919 psf for the four-bedroom unit in 2011. (Photo: Edmund Tie and Co) A two-level penthouse on the sixth storey of The Berth by the Cove will be placed under the hammer on 28 February at The Amara Hotel Singapore, revealed Edmund\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":114842,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/auction-listings-rose-34-to-a-new-high-in-2019\/","url_meta":{"origin":111401,"position":4},"title":"Auction listings rose 34% to a new high in 2019","date":"March 11, 2020","format":false,"excerpt":"\r Total mortgagee listings soared 59.1% year-on-year to 751, while owner listings increased 14.8% year-on-year to 707. Singapore saw total auction listings jump 34% year-on-year to a new high of 1,458 listings in 2019 as both owner listings and mortgagee listings registered strong increases, revealed Colliers International. Total mortgagee listings\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":105639,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/auction-sales-down-42-1-in-q1\/","url_meta":{"origin":111401,"position":5},"title":"Auction sales down 42.1% in Q1","date":"April 1, 2019","format":false,"excerpt":"\r The highest transaction registered during the quarter was the mortgagee sale of a unit at Grange Residences, which attracted 24 bids and ended the auction at $7.15 million. Singapore\u2019s auction market saw total sales value drop 42.1 percent year-on-year to $11.57 million in the first quarter of 2019, due\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/111401"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=111401"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/111401\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=111401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=111401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=111401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}