Surveyors are expecting an increase in business from the sale of bank-foreclosed properties this year due to the market downturn. Chung Sen Surveyors director Tsang Kit-chun said income generated from the sale of bank-foreclosed property would account for 50 per cent of the company's revenue this year, against 40 per cent the previous year. In the first quarter, the company sold 92 bank-foreclosed properties, representing 31 per cent of properties it auctioned on behalf of clients. The company, which arranged the sale of foreclosed properties for more than 40 financial institutions, will offer 58 residential and industrial units for auction on Saturday - the largest number of foreclosed properties for sale this year. Mr Tsang said there was an increase in bank-foreclosed properties involving speculators who bought at near peak prices. 'Speculators decided to default on mortgage payments after a dramatic fall in property prices as well as a rise in interest rates.' Banks would liquidate such properties to recover the amount in mortgage loans extended to the owners, he said. The majority of the company's foreclosure sales were worth less than $10 million each, he said. 'It is easier to sell bank-foreclosed properties as most of them are 20 per cent to 30 per cent lower than the market price.' Banks were willing to cut prices so long as it was enough to cover amount of the mortgage, he said. Francis Lau & Co (Surveyors) managing director Serena Lau Sze-wan also reported an increase in bank-foreclosed properties this year, and expected more to come during the next few months. She said it took four to six months for a foreclosed property to be ready for auction after owners defaulted on mortgage payments. 'We are also doing more of these auctions to compensate for the fall in business in other sectors.'