Based on research by Knight Frank, from 2011 to 2017, there were 19 strata landed and landed homes that were sold at auction. Of these, 7 were owner sales while 12 were mortgagee sales.
According to research data by Knight Frank, from January to September 2017, of the 48 mortgagee sales listed, 5 were sold under the auction while of the 47 listed owner sales 3, were sold. However, from January to September 2016 none of the 42 mortgagee sales and 52 owner sales that were listed for auction were sold under the hammer. The data is for both strata landed and landed homes.
One of the notable mortgagee sales in 2017 is the Paradise Island bungalow in Sentosa Cove. The waterfront house has 6 bedrooms, a private berth and a swimming pool and was completed in 2009. Its land area is 7,360 sqft and built up area of 8,800 sqft on the leasehold of 99 years.
Colliers International put up the house for auction in June 2017 at an opening price of $13m. However, it did not receive any bids and it was withdrawn from auction. On August 25, a closed tender was held for the house by Colliers and it is said to have fetched less than $13m.
“Of the total sales value, there was a difference of $11.67m between mortgagee sales and owner sales,” said Alice Tan, Knight Frank Singapore director and head of consultancy.
Tan added that owners are giving out offers as they observe a more buoyant sentiment and prices are anticipated to increase. She added that the movement of interest rates would determine bank sales.
Larger properties take time to sell. For example, Colliers International auctioned Belmont Road GCB, a mortgagee sale, first in January 2017 at $25.5m ($1,562 psf) opening price. The property has a swimming pool, a 5 cars porch, 4 bedrooms and a home entertainment centre in the basement. It occupies an area of 16,327 sqft freehold area and a built-up area of 7,200 sqft.
The GCB was redeveloped and completed in 2009 and was auctioned for the 6th time in October 2017 at an opening price of $22.8m ($1,396 psf) at Knight Frank.
Tan observes that investors will invest in real estate to hedge against global market volatility and inflation. She added that the Singapore property sector has increased confidence.
Look out for new landed property launches by visiting Nim Collection by Bukit Sembawang, Belgravia Villas Phase 2 by Tong Eng Group and Luxus Hills by Bukit Sembawang. If you are interested in District 21, you may visit a freehold landed development, Kismis Residences or their strata landed, Tranquilia at Kismis.