Over the years, we have never witnessed the sudden increase of mortgagee listings like 2019. There was no doubt it was an unexpected occurrence. You might be wondering what boosted this increase. Industrial, retail and residential segments have been attributed to boosting the unexpected increase. It is good to know that these details were released recently into the popular Knight Frank Market. What was the exact number of auction? The number of the auction has been increasing day by day. By January 2019, they had climbed to about 1,380. Unfortunately, there was a sudden fall in success rate auctions. Please see Penrose Project Details for more information with regards to the CDL Project.
What are the factors behind the rise of these listings? There have been more applications for bankruptcies. In addition, the overall vitality has continued to increase in the equity markets. In a real sense, you can be able to see that the slowing economic growth and the recent trade war between China and the United States are some of the factors behind this. Debts have been accumulating day by day. This has led to a fall in top-line growth.
As a result of these occurrences, many owners have been forced to default on mortgage payments. Do you often pay attention to the property market? You can agree with me that indeed this trend is quite similar to the 2014 scenario. It is good to know that between 2014 and 2017 there was a surge in mortgagee sale listings. The main factor behind this is high retrenchments. Away from that, interest’s rates were hiked while rental income dropped.
Do you know that mortgagee sales have been rising for the last couple of years? This is the third consecutive year. Although the listings of landed residential property were quite low in 2014, this did not hinder them from increasing to about 100. At the same time, those with asking price rose to 42 listings.
The rise in listings of the property was observed in 4 prime districts. The slower residential market can be attributed to the increase in the number of listings. Many people were held back from purchasing properties. Stamp duties and loan to value ratio is one factor that prevented potential buyers from making a purchase.
This happened more so to people who were looking for residential properties that commanded higher price quantum. As a result, properties were to be languished for a longer period of time in the market. You might be aware that people who were unable to hold on their properties turned into mortgagee sales. This has been the case for very many years.
Property under mortgagee sales underwent more rounds of auctions. This happened sometime before they were transacted through private treaties. These listings have continued to dominate other popular districts even in 2019. The financial cash flows were greatly affected by the uncertain external environment that was experienced in 2018.