PETALING JAYA (May 30): Looks like more property owners are losing their holding power as 1Q2017 has seen a rise in the number of residential properties put up for auction in the country.

The number of residential properties that went under the hammer in 1Q2017 surged 14.4% to 6,225 cases worth RM1.78 billion from 5,442 cases worth RM1.375 billion registered in the same period a year ago, according to data compiled by AuctionGuru.com.

The online auctions listings platform’s executive director Gary Chia said abundant supply and low rental yields for residential properties are the most likely contributors to the increased number of foreclosures.

“Moving ahead, we expect the excess supply in the market to persist, which will pose further pressure on prices in the overall residential property market,” he said.

According to the data compiled by AuctionGuru.com, the central region — including Kuala Lumpur, Selangor and Negeri Sembilan — has recorded the highest number of foreclosures in the residential property segment with 3,137 units valued at RM1.2 billion in 1Q2017.

The northern region — Perlis, Kedah, Penang and Perak — saw 1,577 properties valued at RM233 million being put up for auction in the same quarter, while the southern region — including Johor and Melaka — registered 947 cases worth RM246 million.

East Malaysia (Sabah and Sarawak) had 436 properties valued at RM98 million that went under the hammer in 1Q2017, while the east coast region — Kelantan, Terengganu and Pahang — registered 128 foreclosure cases worth RM21 million.

Of all the states in the country, Selangor (2,272 cases worth RM784 million), Johor (817 cases worth RM227 million) and Perak (656 properties worth RM61 million) had the highest number of auction properties in 1Q2017.