Prime residential properties to be auctioned in mortgagee sales

Feb 22, 2022



SEVERAL prime residential properties are going on the block this week in mortgagee sales.

Marketing agent Knight Frank's line-up boasts a 4-bedroom duplex penthouse at Marina Boulevard with a guide price of S$12.6 million and a 2.5-storey bungalow at Sentosa Cove priced at S$10.75 million.

The auction, which will begin on Feb 24, 2022, also includes a 2-bedroom apartment with a guide price of S$1.53 million.

Meanwhile, Edmund Tie will start its auction on Feb 23, 2022, with residential properties ranging from a S$670,000 1-bedroom unit to a S$2.1 million 3-bedder. However, the marketing agency noted that auction starting bids may not be the same as guide prices stated on its property listings.

Analysts expect more bank sale listings in the second half of 2022. According to Joy Tan, Edmund Tie's head of auction and sales, this is because most of the mortgage deferment plans put in place during the pandemic will come to an end during the first half of 2022, subject to no further extension.

In the later half of 2022, some investors would also be keen to secure certain interest rates before their hike, said Knight Frank in its Q4 2021 auction bulletin earlier this month. "Given the cooling measures, buyers might also feel that prices of residential properties will level off to match their price expectations in 2022. We expect auction listings to increase, with extended credit support or loan relief measures by the government gradually lifted in 2022."

That said, Tan also noted that the recently raised Additional Buyer's Stamp Duty will affect buyers who intend to purchase properties for investment purposes. "As such, sellers of smaller units typically bought for rental purposes, such as shoebox apartments, might face more resistance when trying to market their units for sale," she said.

Based on the bulletin, mortgagee sale listings declined each subsequent quarter in 2021 to 38 in Q4 and 289 for the whole year, down 5.6 per cent from that in 2020. Residential properties made up nearly half (137) of the year's total mortgagee listings, of which, 83.2 per cent were non-landed properties.

Notable auctions in Q4 2021 included a 1-bedroom condominium at D'Oasia transacted at S$700,000 and a 4-bedroom duplex condominium in The Berth by the Cove that sold for S$3.76 million, 4.4 per cent above its opening price.