SINGAPORE: Of all the private homes being sold through public auctions, about 70 per cent were put on sale by their owners, according to Colliers International which holds one such auction every month.
The remaining are put on auction by banks. Seventy-four per cent of all auctioned properties this year were condominiums while the rest were landed properties.
Colliers said more homes were being auctioned off due to rising interest rates and defaults in mortgage payments.
"This is because of the tighter financing and regulatory environment, which makes it difficult for borrowers on default to dispose their property on their own in the open market.
Consequently if they are in default, the bank will repossess the property for auction sale," said Grace Ng, Deputy Managing Director of Colliers International.
According to numbers from the Credit Bureau (Singapore), 25 homeowners were unable to pay their mortgages in the first nine months of this year. This was compared to 10 in the same period time last year.
The number of those who delayed their payments for more than 30 days also rose by about 12 per cent, to almost 9,000.