More landed properties go under the hammer

By Michael Lim / The Edge Property | November 5, 2015 10:00 AM SGT
A 2½-storey Balinese-style detached house, located on Jalan Kerayong within the Sembawang Straits Estate off Sembawang Road, will be put up for auction by Knight Frank on Oct 22. This will be the second time that the property will be put under the hammer. A mortgagee sale (or a bank foreclosed property), it was first put up for auction last month, also by Knight Frank, with an opening price of $3.7 million. As there were no bids received, the property was withdrawn.
According to caveats lodged with URA Realis, the previous owner purchased the property in June last year for $4.2 million ($1,445 psf). An earlier caveat showed a previous owner paid just $710,000 ($244 psf) for the property in 2005. At that time, it was a single-storey bungalow that the owner had redeveloped into the current 2½-storey detached house between 2008 and 2010, says Sharon Lee, head of auctions at Knight Frank.
Often, banks do not repossess the houses immediately, adds Lee. “They usually give the owners three to six months to sell the property on their own. If that fails, then the bank will step in, have the property valued and appoint an auction house to sell it.”
The Jalan Kerayong detached house is just one of a growing list of landed homes, particularly semi-detached and detached houses, that have surfaced as mortgagee sales at auctions this year. According to Colliers International Research, a total of 135 landed homes were put up for auction in the first nine months of this year, which is close to 2.4 times more than the 57 over the same period last year. The number of mortgagee sale listings of landed homes at auctions has also more than doubled to 32 from January to September 2015, compared with 15 over the corresponding period last year, says Grace Ng, deputy managing director of Colliers International.
This house on Jalan Kerayong was first put up for auction on Sept 22 at an opening price of $3.7 million
Bigger homes struggle to find takers The rate of increase in mortgagee sales of such landed homes has...