Home » Business » Semi-detached house in Toh Tuck Road sold for $3.4 million in 8 minutes in virtual auction
Semi-detached house in Toh Tuck Road sold for $3.4 million in 8 minutes in virtual auction
October 1, 2020
SINGAPORE – It took only eight minutes for a two-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 (Sept 28), said the agency.
Bidding for the house began at $3 million.
Four groups of buyers made a total of 15 bids, with the last seven bids put up within three minutes before the hammer fell at $3.4 million, or $1,017 psf, said ERA Singapore in a statement.
ERA Singapore said the buyers are a Singaporean family, who bought the property for their own stay. 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 those who mortgage these properties 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 at 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, double the usual number at in-person auction events.
On the increased number of attendees, ERA Singapore 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.”
Physical auctions by ERA Singapore were held once a month until they were suspended in April due to circuit breaker measures.
They will resume this month with safe distancing measures in place following the easing of guidelines.
To buy a property in an auction, a down payment of either 5 or 10 per cent has to be paid and a condition of sales, which is equivalent to sales and purchase agreement, must be signed immediately upon successful bidding.
Buyers then have to pay a 1 per cent down payment and will be given an option to purchase (OTP) to pay the remaining sum.
If the buyers back out of the sale, the 1 per cent is forfeited to the seller.
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.”