More units in older buildings put up for mortgagee sale

More shop units in older complexes, which are traditionally popular with investors, are being put up as mortgagee sale in 1Q 2014, a recent Collers International report revealed.

The quarter saw two units in Golden Mile Complex and one in Orchard Plaza put up by banks, compared to only one shop unit for the entire 2013.

The industrial sector, which is also affected by the various governmental regulations, such as the Seller's Stamp Duty saw two properties at WCEGA Tower (at Bukit Batok Crescent) being put up as mortgagee sales.

Six properties were sold in the first quarter of the year and four of those were forced sale/mortgagee listings, including a shop unit at Golden Mile Complex which was sold for $550,000, and three residential units.

The other properties sold were put up by owners. A strata-titled factory unit at Enterprise Hub located in Jurong was hammered down at $1.21 million, while four adjoining office units at Orchard Shopping Centre were collectively sold for $8.55 million.

Colliers International Deputy Managing Director, Grace Ng said: "Due to concerns about affordability brought on by financing curbs such as the TDSR, it was observed that properties with a price tag of less than $1.5 million have generally been able to attract buyers."

Considering the current inertia in the property market, it is expected that the number of properties put up for mortgagee sale will continue to increase, particularly in the high-end residential and retail sectors.

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg



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