Mortgagee sales of condos continue to climb

By
/ The Edge Property
|
May 6, 2016 10:00 AM SGT
At JLL’s auction on April 28, a 1,604 sq ft unit at OUE Twin Peaks was put up for sale. That was the first mortgagee sale at the prime District 9 condominium on Leonie Hill Road to date.
The mortgagee sale at OUE Twin Peaks was of a three-bedroom unit with a study, on the 18th floor of one of the 35-storey towers. The unit had an opening price of $4 million at the auction, which was $500,000 below the $4.5 million ($2,806 psf) transacted price four years ago, based on a caveat lodged in February 2012.
Still, there were no bids, and the property was withdrawn. Mok Sze Sze, head of auction at JLL, attributes the absence of bids for the unit to “competition from the developer”.
OUE Twin Peaks was completed in February 2015, and the developer has to sell all 462 units by next February to avoid incurring extension charges under the conditions of the Qualifying Certificate. Last month, developer OUE Ltd launched a deferred payment scheme to attract buyers to the 99-year leasehold condo.
A three-bedroom unit at OUE Twin Peaks was put up for mortgagee sale by JLL on April 28
with an opening price of $4 million, but was withdrawn
Mortgagee sale listings to stay high The number of mortgagee sales (properties repossessed by banks or financial institutions) at auctions is expected to rise this year. In 1Q2016, there were 71 mortgagee sales at auctions. Residential property made up 48 units or over two-thirds of the total, according to Colliers International in its auction report.
Of the 48 residential properties, 33 were apartments and condos with sizes larger than 1,500 sq ft. “Lenders are expected to place more properties under the hammer for the rest of 2016, keeping the number of mortgagee listings elevated,” says Grace Ng, deputy managing director of Colliers.
The number of mortgagee sales for 2015 was 241. Assuming the number of mortgagee sales remains at the current level of about 70 a quarter — as seen in 4Q2015 and 1Q2016 — Ng reckons the total for 2016 is likely to exceed...