Larger resale condos selling for less than $1m

With the various property cooling measures in effect, buyers are spotting homes in the private resale market for $1 million or less, reported The Straits Times.

And these homes are not all shoebox-size. Some of the bigger units in good locations like Bayshore Road have been going for this amount.

“In 2010 to 2012, $1 million was a sort of standard or expected price to pay, and it was unlikely buyers could get something good for less than that,” said R’ST Research Director Ong Kah Seng.

“Now, opportunistic buyers are referencing it as a ceiling price. They are scouring for properties significantly lower than $1 million. It is still not easy to get these deals, but definitely much easier than before.”

In fact, the proportion of freehold or 999-year leasehold homes resold at this price range climbed to 17 percent from 2014 to this month, from just six percent from 2010 to end-2013.

Aside from the resale market, bargains are also being seen in the auction market, where mortgagee sales are taking place.

Since the start of Q4 2015, units on auction with opening prices of below $1 million included the mortgagee sale of a 790 sq ft apartment in Tiong Bahru and an owner’s sale of a 527 sq ft unit at Dunearn Suites, revealed data from Colliers International.

In 2016, mortgagee sales are expected to be on a stable uptrend, potentially exceeding 270 in number, which is more than what was recorded during the 2008 Global Financial Crisis, noted Grace Ng, Deputy Managing Director at Colliers.

“The rising interest rate will add further strain on borrowers, particularly for those holding multiple properties. However, the numbers are not expected to spike as the employment rate in Singapore remains high, enabling most owners to service their mortgage loans,” she said.