Property mortgage sales even include uncompleted units

A weakening rental market and the growing supply of new homes have pushed even more units into the realm of mortgage sales.

Silversea1Even uncompleted units are now going under the hammer. While only 3 properties were auctioned last year, the number have more than quadrupled to 13 in the same period this year. More mortgagees are defaulting on their loans, which could be largely due to the diminishing loans they are now able to secure based on the debt servicing limits, increasing competition in the rental market and an overall property price drop.

Investors who have been dipping their toes into too many properties may be finding themselves unable to service the multitude of loans taken on multiple properties, in particular smaller one-bedders or studio apartments which are only reaching completion in the recent couple of years. Some units at The Greenwich in Seletar and euHabitat for example, in particular smaller one-bedroom apartments priced at $1 million or below, are being put up for auction as their owners are overstretched financially and find it difficult to secure rents sufficient enough to cover their mortgages. Larger penthouses with irregular layouts above 1,500 sq ft and priced above $2million are also finding it difficult to find buyers or tenants as they exceed the budget of many investors but may not yet fulfil the requirements of affluent or high-networth buyers.

The GreenwichSome of the units put up for auction this year include a one-bedroom penthouse in Guillemard Edge, a three-bedder in Bartley Residences and a four-bedder in Silversea condominium in Marine Parade. The latter was sold at $1,529 psf or a total of $3.9million.


TOP-ready properties come up tops

The common four- to six-year wait for a new property to be built can be quite a nerving time. It makes planning for the future a little tricky and may not make for the best short-term investment.

Tropika East

Photo: Tropika East condominium

Purchasing a property which has already attained its Temporary Occupation Permit (TOP) however, could save you a lot strife and worry. For buyers purchasing for occupation, TOP-ready units are available to move into right away and often with renovations all done. That saves not only time but money. And for those who are looking for investment opportunities, private properties which have attained their TOP can be leased immediately. This year will see a total of 27,149 private condominium units from 71 TOP-ready projects. Another plus point is that buyers can physically inspect these units for their pros and cons instead of doing guesswork from just looking at brochures and show flats which may leave a margin of error.

Jade ResidencesPhoto: Jade Residences 

Properties in some popular suburbs are finding ready buyers are euHabitat and Tropika East in the East,  Jade Residences in Upper Serangoon,  Echelon in Jurong, Bartley Ridge on Mount Vernon and Sky Green condominium in MacPherson. These residential projects with ready units are situated in prime city fringe or Outside Central Region districts. In the central regions, TOP-ready projects to look out for include The Scotts Tower, Robinson Suites and 26 Newton.

However, not all projects with TOPs are equal. It is always wise to do your research and understand that location is key, and getting a solid valuation done on the property using private and public research sources or engaging experienced property agents will help you get the best out of your property purchase.