Selected recommended auction units (Price drop from 1st auction until current reserve price):



How low can it drop? beyond 50%?

look like the bayu sentul can buy since 40% drop.

i saw some agent posted subsale 1629 sf for RM 399K

auction price almost same as subsales edi

Nope dont be tricked. That is the auction unit.
Some agent posted like selling subsale unit. But in actual fact is the auction unit.

already kena trick than .. lol .. even the unit number is stated there.

Pls dont believe on bank valuation entirely... The valuation could have been done several years ago when property at the peak - correct me if I am wrong.

Must ask, why it is lelong in the first place? Owner could have rent/ sell out to avoid foreclosure.

This post has been edited by Sand Dust: Jan 16 2018, 03:47 PM

Few random update of the results:

Is it actually can make profit by buying auction properties to resell ?

Clover sold off?

Any hints on buying auction properties outside of KV? I see many units in Johor....quite tempting

Hot property wont be cheap even in lelong market.
Cheap property wont be hot, it is near impossible to flip.

Example below:

No taker again. Almost 50% drop in price now.

Vision Residence @ Puchong South - Cyberjaya
Size: 2485sqft
Date: 29-Jan-18

1st auction Rm1,000,000
2nd auction Rm900,000
3rd auction Rm810,000
4th auction Rm729,000
5th auction Rm657,000
6th auction Rm592,000
7th auction Rm533,000

If you think is possible you buy at 533k and resell back at 800k (still 20% below market price), earning 200k. Then by all means go and try.

is it true that if you won the auction but failed to get loan your 10% deposit will be forfeited?

Yes. Only recommended to those with clean CCRIS CTOS record and DSR also under good limit.
Well, unless you gonna buy 100% using cash.

SO those auctions units, how to know the unit condition, whether need major/minor reno only?? and how to know if there is any debt?

Any good project there?

Investor VS bidder buying for own stay
Hard to fight. Own stay sure die die also want the unit.

auction properties getting hot now.. more taker

Is there any website which shows the results of auction?

Yes, I would like to know too.

due to more dead chicken.

Bayu Sentul. start with 398k. 8 bidders.

https://www.thestar.com.my/business/busines...auction-market/




New units entering auction market

OF late, brand new never-lived in properties have been entering the auction market. Some of these units are foreign-owned while the majority of them are local buyers, a source from an auction house says.

Owners are not bothered to take possession of these units while some took possession for a short while only to forgo their investments.

Two banks confirmed there are such units entering the auction market.

Most of these units were purchased four to five years ago under developers interest bearing schemes with low downpayment. Under the scheme, mortgage payments only kick in when the property is completed.

“They wanted to flip the units but because of the weak property market, they were unable to sell them,” the source from an auction house says.

This “trend” of never-lived in units coming under the hammer is something that is relatively new which started two to three years ago, the source says.

It started as something innocuous initially. Today, the source is seeing more such units entering the auction market.

“Maybe 5% to 10% of our listings comprise these new units,” the source says, adding that more are expected to enter the auction market.

A bank employee who heads the auction division says his department are seeing more brand new units entering the auction market.

“These unit come directly to us from the developers. These are recently built condominiums with high prices in which buyers had purchased for investment but have decided not to go ahead with the mortgaged payments,” the bank source says.

Most of these units are in Johor although there are also units in the Klang Valley, the bank source says.

He says those who buy properties for occupation are not “that affected”. Those who are “hit” are “mainly investors”, the source says.

The issue is not so much the interest rates as mortgage rates remain low at 4.25%-4.35%.

There was a time when double-digit interest rates forced many into arrears soon after the Asian Financial Crisis in 1997/98. Unable to keep up with mortgage payments, they lost their homes, the source says.

But this time, he says, it is different. The issue is not interest rates.

The source says his bank has over 100 foreclosures each month, of which about 58% come under the hammer. The rest are withdrawn from the auction market.

The bank source says the number of foreclosures today is “unlike” that during the period soon after the Asian Financial Crisis. That period saw a lot more foreclosures. In that sense, the number of foreclosures has not really risen.

“It has stabilised,” he says.

On whether he is seeing more small offices home offices (SoHos) and properties in this genre in their books facing foreclosures, he says the bank has not been lending aggressively to this segment of the property market.

SoHos are commercial properties with a residential element to it.

He says the bank he works for is rather “conservative” and does not have much exposure in this genre of the property sector.

On whether there is a significant rise in the number of auction on new units from other states other than Johor, he says “not yet”.

He says the bank is trying to cap its non-performing loans at 1% to 2%.

However, the bank’s mortgage base, or property loans, is rising.

The source says while mortgage loans is a growing market, it would like to limit exposure to certain segments of the real estate market.

A second bank source says his bank’s mortgage loans hit new records annually but the NPLs are capped at 1% to 2%.

So despite the NPLs at that low rate, the mortgage base has grown annually which means that more properties will be financed and some of these may become delinquent.

The rise in the number of units auctioned is “incremental” because any units which are unsold at the first round of auction will be put on the second round but with 10% drop in price.

“The number of cases, or units auctioned, is based on NPLs and the mortgage base. There may be a perception that there are more auctions today, but this may be due to units going through multiple rounds.

“There may be more auctions but not more units,” the source says, adding that since 2002, the recovery process has been more efficient.

On the broad range of properties auctioned today, he says that over the last 10 years, the majority of properties offered by developers belongs to the “high-end category of RM400,000 and above”.

Prior to this, launches were priced at between RM200,000 and RM250,000.

As the types of units broaden to include a wider range of housing types with higher prices, it is natural auctions today carry a wider range of units with differing price points as well as the lower priced flats and apartments, he says.