Media reports say that banks are auctioning five times more homes because borrowers are struggling to sell luxury homes due to falling prices and government measures designed to cool the property market.
Colliers International say that 98 repossessed homes were auctioned in this way between January and October 2014, as opposed to the 17 for the whole of last year. Non-landed properties at well-known projects including Reflections on Keppel Bay, Stevens Court (Stevens Road) and Turquoise at Sentosa Cove.
Property Auctioning put fear on Bellewaters
Grace Ng, Deputy MD Colliers International said that borrowers in default were finding difficulty in selling their properties independently because buyers are wary on the purchases of Bellewaters Sengkang. Also defaults by luxury property owners mean that local banks have more non-performing loans on their books. Several clients who are on the affluent side are presently shopping all-around for luxury properties currently under distress or are in fact marketed with volume promotions by the developers. Therefore Bellewaters EC Buyers continue to be cautious amid the slowing property market to see if there is a drop in prices by the developers. However, it is noted that generally, the developers do not give discounts for buyers for Bellewaters Sengkang.
The United Overseas Bank reports that the housing non-performing loans on its books almost doubled during the third (financial) quarter 2014 to $502 million as opposed to the $295 million in the third quarter 2013 for Bellewaters Sengkang by Qingjian. The bank said that this marked increase is mostly composed of loan holders who invested in a particular Singapore luxury housing project, which the bank refused to name.
Investing in Bellewaters EC Sengkang
The Overseas Chinese Banking Corporation non-performing loans rose by almost $50 million from $227 million to $272 million, one factor involved in the increase was the consolidation of the corporation’s Wing Hang portfolio.
Chestertons Singapore MD Donald Han said that amid falling property values borrowers for Bellewaters Sengkang were having difficulty in refinancing loans particularly those whose credit worthiness is unattractive and that in these circumstances non-performing loans would increase.