In Q1 2023, there was a significant increase in the number of mortgagee listings, and this trend is expected to continue into the second half of the year due to the rise in bankruptcy applications. According to data from the Ministry of Law, there was a 5.6% increase in bankruptcy applications in Q1 2023 compared to the previous quarter, with a total of 959 applications filed. This figure is also 22.2% higher than the number of applications filed in Q1 2022.
Both Knight Frank and Edmund Tie, which hold monthly auctions for distressed properties, have reported a higher number of mortgagee listings in the first quarter of 2023. This suggests that more properties are being put up for sale due to financial difficulties faced by their owners.
The number of residential mortgagee listings increased to 18 in Q1, more than doubling from the previous quarter. However, this figure is still 14.3% lower than the 21 listings in Q1 2022. One example of a distressed property is a non-landed home located in St Regis Residences, which was listed for receiver sale for two consecutive months and eventually sold outside of auction for S$13.5 million.
Knight Frank reported an increase in retail and office mortgagee listings, with four and three listings respectively in Q1, compared to no listings in the previous quarter. The number of industrial listings also more than tripled to seven from the previous quarter. Knight Frank attributed this increase to a tougher business climate and rising interest rates, which has made business continuity challenging for some property owners
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