View of Seascape @ Sentosa Cove. (Photo: JLL)
A condominium unit at Seascape @ Sentosa Cove was auctioned off at a $6.6 million loss when a Singaporean buyer bought it for just $6.2 million – making it the standout deal in the auction market for Q1 2017, reported the Straits Times.
The unit’s former owner purchased the 4,069 sq ft property for about $12.8 million in June 2010. However, the bank auctioned off his property in February after he ran into repayment problems.
Meanwhile, a record 177 properties were placed under the hammer in Q1 2017, of which 83 were mortgagee auctions, up 38.3 percent from the previous year and the highest since Knight Frank started monitoring the auction market in 2011.
The consultancy noted that mortgagee auctions, which occur when property owners default on their mortgages and banks put their property up for sale, have been on the rise. It revealed that 63 units were put up for mortgagee sale in Q4 2016, the second-highest quarterly number behind this year’s record. There were 62 units put up for sale in Q2 2016.
Looking ahead, Mok Sze Sze, Head of Auctions at JLL, expects mortgagee sales to increase by between 10 and 20 percent this year. More buyers are hunting for good deals, she said.