The year ahead may be a bumpy one for property developers who have a large inventory of unsold stock and for investors who may have overstretched themselves.
A good many unsold properties may be making their rounds within the local market as sellers, buyers, investors and developers bid against one another to see who gets the best deal. There will be those who need or want to sell, and those who are able to buy when the price is right despite a market slowdown.
Photo: House in Hua Guan Gardens for sale
As more buyers are defaulting on their mortgage as interest rates rise and the market lulls, more homes are going under the hammer in mortgage sales. Last year saw the number of units put up for auction almost double from 47 to 87. Comparing this to 2012, when only a mere 9 units were put up for auction, the numbers have leapt considerably over the past 5 years. Given the quietening rental market and a global economic tossup, some owners are finding it difficult to service their loans. What does this signify? Will private home prices fall this year or will the number of new units coming into the market simply place more options out there for buyers?
The mortgage-sales properties were mostly larger apartments or private landed homes. Though this may mean the market for these properties have shrunk, it is good news for buyers who have been waiting and are ready to buy purchase these rare properties. One such property is a cluster bungalow in Hua Guan Avenue, just off Dunearn road, attractive for its rarity, 4,219 s q ft size, and location. It is situated near King Albert Park MRT station. Other potential money-makers include 2 maisonettes and one former-HUDC unit all sized around 1,600 sq ft and a steal at possibly below $1 million.