The number of properties placed on the auction block by lenders/mortgagees quintupled to 159 in 2014 from 32 in the previous year, according Colliers International and reported in the media.
Of the forced sales listings, 78 percent were residences, while the remainder were industrial or commercial real estate.
Specifically, many of them were non-landed houses in prime districts 9 and 10, like those at The Verv in River Valley, Orchard Road’s Thong Sia Building and Botanic Gardens Mansions along Napier Road.
Aside from high-end apartments from the newer prime districts of 1 & 4, lenders also tried to sell residential units at The Sail @ Marina Bay, Marina Bay Residences, Reflections at Keppel Bay and Turquoise in Sentosa Cove.
There was also a 1,755 sq ft maisonette at Pearl Bank Apartments in Outram going for $1.38 million, as well as a 517 sq ft single-bedroom apartment at Estilo in Wilkie Road.
Furthermore, many buyers are keen on mortgagee sales as they know that the seller has a serious intention to sell.
“Bank sales are popular among buyers because they are able to get a good quality apartment at market rates,” explained DTZ Auctions Head Joy Tan.
“There may be some discounts given for properties that have been put up for auction more than once, although the extent of the discount will depend on the quantum price,” she added
For example, the seller may offer larger discounts for properties costing more than $5 million compared to units priced within $1 million to $1.5 million.
Out of the 159 mortgagee sales in 2014, only 22 properties were successfully auctioned off, but the rest are likely to be sold via private negotiations after the auctions, added Colliers International’s Deputy Managing Director Grace Ng.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email email@example.com