Virtual auction draws 15 bids for freehold house; no takers for 7 other properties up for sale
It took only eight minutes for a 21/2-storey semi-detached house in Toh Tuck Road to be sold for $3.4 million in a virtual auction.
The freehold property at 69 Toh Tuck Road, which has a land area of 3,340 sq ft, was “fiercely contested” at real estate agency ERA Singapore’s first virtual auction event on Monday, said the agency in a statement.
Bidding began at $3 million. Four groups of buyers made a total of 15 bids, with the last seven bids put up in the three minutes before the hammer fell at $3.4 million, or $1,017 per sq ft (psf), said ERA.
The house went to a Singaporean family who bought it for their own use, said ERA. The family declined to be interviewed.
It was a mortgagee sale and the seller was a local bank. Mortgagee sales refer to properties that are repossessed by banks and financial institutions when the buyers default on their loans. The bank can then sell them on the open market to recover the outstanding amount.
Eight properties – five residential, two commercial and one industrial – were offered for sale at the virtual auction, but only the house in Toh Tuck Road was sold.
The house, which is near Beauty World MRT station, was described by ERA as a “ideal” freehold property for “addition and alteration works”, or “for home owners to imagine a brand-new home with the location”.
Last July, a neighbouring 3,380 sq ft house at 69A Toh Tuck Road was sold at $4.1 million, or $1,214 psf.
More than 50 participants attended the 40-minute virtual auction on Monday. This was double the usual number at in-person auction events.
On the increase in attendees, ERA Singapore’s chief executive Jack Chua said: “Being able to shift our auction online brings more ease and convenience to interested participants by widening their capability to join the auction any time, anywhere they are.”
ERA’s physical auctions were held once a month until they were suspended in April due to circuit breaker measures, but will resume this month with safe distancing measures in place.
To buy a property at an auction, a down payment of either 5 per cent or 10 per cent has to be paid and a condition of sales, which is equivalent to a sales and purchase agreement, must be signed immediately upon successful bidding.
Mr Chua said: “As auctions usually include forced sale or repossessed properties by banks, receivers or by court orders, buyers may be drawn to such auctions for some good deals.”
“Source:[Sold for $3.4m in 8min, online] © Singapore Press Holdings Limited. Permission required for reproduction”