Malaysia
Reserve Price of foreclosed property
Section 257 (1) (d) of the National Land Code of 1965 states that: “Every order for sale made by the Court under section 256 shall require the Registrar of the Court to fix a reserve price for the purpose of the sale, being a price equal to the estimated market value of the land or lease in question.”
Korea
Foreclosure auctions used to be only for specialized realtors. After the bubble economy, foreclosures increased and the Civil Execution Act was revised to enable the general public to engage in fair and secure transactions. Winning bids may range from about 30% to 50% discount of market prices, so there are more bids from the individual buyers as well as from real estate companies. [1]
Over 70,000 real estate[2] properties are put on public auction across Japan every year.
The annual average number of apartment auctions in SMA was 85,953 apartments countrywide). [3]
“reserve prices positively influence the final property transfer prices”[4]
only one-third (32.7%) of the real estate court auctions examined were concluded successfully[5]
In South Korea, If bidders do not reach the reserve price, the court continues the process at one-month intervals, reducing the reserve price by 20–30% every round.[6]
Han-Jang No·Dai-Won Kim·Jung-Suk Yu, “Do Reserve Prices Yield Reference Effects in Korean Residential Court Auctions?”, International Real Estate Review, Asian Real Estate Society, 2017, Vol 20, Issue 1, pp.75~104
Apartment foreclosure discount in Kuala Lumpur
Woei Chyuan Wong,Pooi Leng Ng,Janice Y.M. Lee &Md Nasir Daud
It is found that foreclosed apartments are listed at a discount of 33.4% as compared to apartments advertised in the private negotiated market.
Article Citation:
Hardin William and Wolverton Marvin (1996) The Relationship between Foreclosure Status and Apartment Price. Journal of Real Estate Research: 1996, Vol. 12, No. 1, pp. 101-109.
The Relationship between Foreclosure Status and Apartment Price
An analysis of apartment sales in Phoenix, Arizona, demonstrates that foreclosure-status apartments sell at a 22% discount when compared to non-foreclosure apartment sales.
[2] http://981.jp/en/top.action
[3] Do Reserve Prices Yield Reference Effects in Korean Residential Court Auctions? Han-Jang Noa , Dai-Won Kimb , and Jung-Suk Yuc
[4] Do Reserve Prices Yield Reference Effects in Korean Residential Court Auctions? Han-Jang Noa , Dai-Won Kimb , and Jung-Suk Yuc 1
[5] Do Reserve Prices Yield Reference Effects in Korean Residential Court Auctions? Han-Jang Noa , Dai-Won Kimb , and Jung-Suk Yuc
[6] Do Reserve Prices Yield Reference Effects in Korean Residential Court Auctions? Han-Jang Noa , Dai-Won Kimb , and Jung-Suk Yuc