PropNex initiates closed bidding as auction events remain barred

By
/ EdgeProp Singapore
|
August 21, 2020 2:14 PM SGT
SINGAPORE (EDGEPROP) - As physical auction events continue to be barred under Phase Two of Singapore’s reopening guidelines, the auction team at PropNex Realty has unveiled a closed bidding system as an alternative mode of sale. This will be available to sellers of private and HDB properties.
“We are pioneering a new method of property sale in view of the ongoing restrictions on mass gatherings due to the Covid-19 pandemic. This method may then be considered as an alternative to auction in the future,” says Clarence Goh, head of corporate sales at PropNex Realty.
According to PropNex, five properties will be put up for sale under this closed bidding exercise. The closing date for this exercise will end on Aug 25.
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One of the properties is a conservation shophouse at 240 Tanjong Katong Road with a starting price of $8.8 million. The freehold property enjoys prominent road frontage at the junction of Tanjong Katong Road and Parkstone Road. It is also close to the future Tanjong Katong MRT station on the Thomson-East Coast Line. The station is expected to open in 2023.
The four-storey shophouse sits on a 2,064 sq ft plot that is zoned “residential with commercial on the first storey”, and it has an allowable plot ratio of 3.0. The property is fully occupied with the ground floor leased to an eatery.
Shophouse at Tanjong Katong Road - EDGEPROP Singapore
The corner shophouse has a starting price of $8.8 million. (Picture: PropNex)
Other properties that will be offered under the closed bidding exercise include a B2 Factory at 7B Tuas South Ave 10, a five-room HDB flat at 471B Fernvale Street, and two studio units at North Park Residences.
Private treaty deals are allowed more than a week before the closing date, and all private treaty offers received before the closing date will be made known to the respective seller and other interested bidders.
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But if a bid has been submitted, then no private treaty is allowed and all offers must go through the bidding box. Thus, the seller may choose the best offer via private treaty or can stick to the closing date to determine the sales outcome.
However, a week before the closing date, no private treaty deals can be put forward and all bids must go through the bidding box. The seller will be notified of the closed bidding result and may go into private treaty negotiation if the offers received fail to reach the reserve price.
“The closed bidding system offers benefits to both sellers and potential buyers — sellers will know that they are receiving firm offers from genuine buyers, while the bidders are notified of competing offers which makes the process transparent,” says Goh.
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