Year's first public property auction in Singapore includes remnant land
A CURIOUS piece of remnant land in Sixth Avenue surrounded by state land is up for sale.
The owner cannot develop it on its own, and the state land must first be sold, before the plot can be combined.
And yet, this 6,042 square foot freehold remnant land with a guide price of S$3 million has invited more than 100 enquiries.
It is listed among 2021's first public property auction, and is the first such sale that senior auctioneer Joy Tan has come across.
The remnant land, which has been put up as a mortgagee or bank sale, is one of 16 properties which will come under the gavel on Wednesday afternoon, said Ms Tan, Edmund Tie head of auction.
Remnant land are small and/or irregularly shaped plots of land left over after development. They are incapable of independent development by virtue of their size and shape. They however have the potential to enhance the economic value and use of adjoining lands.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
"We've received over 100 enquiries and are expecting some interesting people to bid for it," said Ms Tan. Enquiries include those from developers, as well as residents in the area.
As the neighbouring plot is state land, whomever buys the remnant land will have to wait for the government to sell the neighbouring state land. Only then can the new owner combine and enhance the plot, said Ms Tan.
The 16 properties put up for auction on Wednesday are worth close to S$25 million, and over 60 people have registered to attend, she said.
Most of the 16 listings - that is, 14 of them - are mortgagee sales, which may be a sign of Covid-driven stress. In previous auctions, mortgagee sales might make up half of the listings, said Ms Tan who held five auctions in 2020. The remaining two of the 16 are owner sales.
Banks have held off on repossession of properties last year due to the pandemic and also government relief measures, said Ms Tan.
Among today's properties include One Shenton and Southbank units, both with guide price of nearly S$1.7 million.
There's also a high end Gramercy Park four-bedroom unit with a guide price of about S$8.5 million. Freehold Gramercy Park is on posh Grange Road.
Social distancing measures will be enforced which means only 50 people can be in the auction hall, said Ms Tan.
If there are more than 50, auctions will be staggered.
Copyright SPH Media. All rights reserved.
