More property owners are now under financial stress, and auction listings are creeping upward. In Q1 2025, there were 83 mortgage sale listings — a notable jump from 67 in Q4 2024.

This rise rattles confidence in a market long perceived as fortress-like. Is this a crisis? Or is it a calling for the prepared investor?

Why Are Mortgage Sales Rising and What’s Changing?

Mortgage sales happen when owners default on their loans, and banks repossess the property to recover debts. For a market like Singapore, where property is treated almost like gold, this isn’t common unless financial pressure is real.

So, why now?

Lagged interest-rate strain

Many property owners took out or refinanced loans when interest rates were rising in 2023–2024. The burden shows up only later.

Rental yield softening & cooling demand

While rents surged in 2022–2023, in 2024 and into 2025, the momentum has slowed. In Q2 2025, rents rose by 0.8% quarter-on-quarter in the private non-landed segment.

*Source: URA, figures exclude Executive Condominiums (ECs)

Landlords banking on high rental yields are now finding their income isn’t enough to cover rising mortgage payments.

Job losses and business stress

From banking layoffs to tech redundancies, even high-income earners have been caught off guard. And when incomes drop, property repayments suffer.

Market overconfidence

Some owners bought aggressively in the 2021–2022 boom, expecting perpetual capital appreciation. When cash flows falter, the leverage becomes unsafe.

A Turning Point in Q2 2025

The story is not all downhill. In Q2 2025, mortgage listings fell from 83 to about 64.

- Auction listings overall declined 11.8% quarter-on-quarter.

- This suggests that easing borrowing pressure (due to policy shifts) is allowing more owners to stay afloat or dispose of properties on their own, rather than face foreclosures.

Thus, the risk is still there, but it may have peaked (or is peaking) rather than accelerating unabated.

Monetary Policy Context: MAS Easing in 2025

Crucially, the Monetary Authority of Singapore (MAS) began easing policy in January 2025, adjusting the slope of the S$NEER band slightly.

- Core inflation forecasts were revised downward (e.g. 1.0–2.0% in 2025)

- Further easing is expected or at least under consideration as external headwinds build.

This easing helps relieve pressure on borrowers, moderating the flow of new distressed listings.

Who’s Actually Hurting?

Let’s be clear: not everyone is distressed. The Singapore market is segmented, and different groups are feeling the pinch differently.

• Mid-tier landlords — They’re the ones stretched thin. Multiple properties, high leverage, and now can’t cope with higher mortgage rates.
  
• Retail and office owners — Some are caught in the structural shift of work-from-home and changing consumer habits.
  
• Ordinary families — A smaller but important group. A job loss or unexpected financial setback has pushed some households into distress.

But what about the ultra-rich?

Truthfully, the higher echelon is rarely affected. The wealthy don’t lose their homes to the bank; they wait for opportunities to buy distressed assets from others. In fact, history shows that crisis often transfers assets upward — from the overleveraged to the cash-rich.

So if you’re in a strong financial position, this is the moment to watch closely.

Does Crisis Mean Opportunity? 

This is the heart of it.

Every mortgage sale is painful for the owner, but for investors, it can mean:

• Discounted entry points: Properties often sell below market valuation, giving you instant upside.
  
• Rare access: Prime properties that don’t usually hit the open market can surface as mortgage sales.
  
• Negotiation power: In distress scenarios, buyers have leverage to negotiate better terms.

But let’s not sugarcoat it. It’s not easy.

• The auction success rate is low. In Q1 2025, only 7 out of 83 listings succeeded (5% success)
  
• Banks set reserve prices based on valuations, not fire-sale levels. Deep discounts are rare.
  
• Due diligence challenges: restricted inspection, “as is” condition, unclear liabilities or encumbrances.
  
• Speed & liquidity needed: must act fast, often with cash or ready financing, to win bids.
  
• Not all bargains are quality — poor location, structural flaws, weak rental potential can offset “cheap” landings.

That’s why guidance matters. You don’t just buy cheap; you buy smart.

The Investor’s Dilemma: Stay in Singapore or Look Abroad?

Here’s where it gets interesting.

Singapore remains one of the safest and most resilient property markets in the world. Even with mortgage sales on the rise, our fundamentals haven’t changed: limited land supply, a highly stable government, and our status as a global hub. That’s why capital keeps flowing in — global investors know Singapore isn’t going anywhere.

But — and it’s a big but — the trade-off is yield. Returns here are modest compared to what you can achieve elsewhere.

If you’re looking for higher growth, Singapore might not always give you the best bang for your buck. That’s why savvy investors are diversifying their portfolios beyond our shores:

• Melbourne: Historically strong capital growth, attractive entry prices compared to Singapore, and education-driven rental demand.
  
• London: A resilient prime market with unmatched global prestige, plus a currency play for Asian investors who know how to read the pound.
  
• Bali villas: A lifestyle investment that doubles as a cash cow, with short-term rental yields that put many urban apartments to shame.

And here’s one that often gets overlooked, but deserves your attention:

• Bangkok: Asia’s rising luxury hub, with projects like Porsche Design Tower and La Clef Residences 38 setting new benchmarks. Entry prices are far lower than in Singapore, but lifestyle appeal and rental demand are soaring. Many investors I speak with are quietly shifting part of their portfolio here, chasing both yield and prestige.

In fact, Bangkok deserves its own spotlight. I’ll be writing a Part 2 deep dive specifically on why Bangkok is becoming one of the most compelling alternatives for Singaporean and global investors. (Keep an eye out!)

So what's the lesson?

You don’t have to choose. Singapore gives you stability, while overseas markets like Melbourne, London, Bali, and yes, Bangkok, offer yield and upside. Balance the two, and you’ll have a portfolio that weathers uncertainty while capturing growth.

When Others Retreat, The Smart Invest — Will You?

The rise in mortgage sales in 2025 is a clear signal that financial stress is playing out in Singapore’s property sector, but it doesn’t imply systemic collapse. Q1 saw a spike, Q2 a pullback. Policy relief is beginning to moderate pressure.

For the vigilant investor, distressed listings may offer windows of opportunity — but only if you approach them with discipline, liquidity, and realism. As always, opportunity lies not where everyone rushes, but where the patient prepares.

If you want to explore which mortgage sales or overseas markets fit your goals, connect with me now.