Chart of the Day: Landed properties being auctioned off alarmingly jumped 67%

Struggling homeowners didn't have any choice.

Auctioning off their landed properties would have been one of the biggest decisions homeowners had to make as they try to shild themselves from getting badly hurt by the higher total quantum of landed properties and TDSR.

According to Knight Frank, the number of properties put up for auction fell by 2.4 per cent quarter-on-quarter (q-o-q) to 124 units in 2Q 2014. However, the number of properties put up for auction has risen by 12.1 per cent year-on-year (y-o-y) to 251 units in 1H 2014 compared to 224 units in 1H 2013.

Here's more from Knight Frank:

The number of landed properties put up under mortgagee sale has increased by about 66.7 per cent q-o-q to 5 units in 2Q 2014. Compared to 1H 2013, the number of landed properties put up has doubled in 1H 2014 (8 units).

The relatively higher total quantum of landed properties, coupled with the implementation of the Total Debt Servicing Ratio (TDSR) framework, have made it increasingly difficult for landed homeowners to service their mortgage payments. This has in turn resulted in an increasing trend of landed properties being put up for auction.

For type of sale, the proportion of properties put up under mortgagee sale has risen from 24 per cent in 1Q 2014 to 44 per cent in 2Q 2014. Similarly, on a yearly basis, this proportion has risen from 7 per cent in 1H 2013 to 33 per cent in 1H 2014.

The rise in the quarterly number of properties put up under mortgagee sale coincided with a 5.2 per cent increase in the average monthly number of bankruptcy orders being made over the same period.