Document 6609300

SUZUKI CUP
IN LIFE!WEEKEND: THINGS TO DO
ESCAPE
TO
SECRET
SPOTS
ROCK
THE
NIGHT
AWAY
C4&5
C6
TEA WITH TASTE
OF FRANCE
C8
WHO’S
HOT,
WHO’S
NOT
SPORT B31&32
SINCE 1845
FRIDAY, NOVEMBER 21, 2014
More homes
go under the
hammer in
weak market
Big jump in property auctions as
banks try to recover unpaid loans
By RENNIE WHANG
SINGAPORE’S weak property
market has sparked a big jump in
the number of auctions by banks
trying to recover mortgages
where borrowers have defaulted.
Figures from Colliers International show that 131 properties
of all types were put up for auction sale by mortgagees, or lenders, from January to October.
That was more than five times
the 25 properties in the same period last year. Of that, 98 homes
were put up for auction by mortgagees in that period, seven
times the 14 homes in the 10
months last year.
Experts say borrowers in default have found it difficult to
sell their properties on their
own, as buyers remain cautious.
Some upscale homes have
been hit, including Marina Bay
Residences, The Sail@Marina
Bay, Reflections at Keppel Bay
and Turquoise in Sentosa Cove.
In prime Districts 9 and 10,
units at Thong Sia Building in Orchard Road, The Verv at River
Valley and Residences at Killiney
were among those affected.
An auction by Knight Frank
yesterday featured a 1,755 sq ft
unit at Botanic Gardens Mansion
in Tanglin, while an auction today by Colliers lists two 1,926 sq
ft units at The Laurels in Cairnhill Road as mortgagee sales.
A JLL auction next week includes a unit at Ville Royale in
River Valley and a Reflections at
Keppel Bay unit.
More luxury properties are
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ST PHOTO: DESMOND WEE
Private cars doubling as pirate
taxis – numbers are rising
By DANSON CHEONG
MORE drivers are using their
own cars to provide illegal taxi
services – a situation reminiscent of Singapore’s pre-1970s pirate taxi days.
In the first nine months of this
year, 39 motorists were arrested
for using their cars as taxis. Only
12 were arrested last year, while
in 2012, there were no arrests.
The Land Transport Authority, which provided these figures,
said that arrests were made after
feedback was received from various sources. It receives an average of 70 complaints a year
about such illegal taxi services.
Such services can be found on
online classified sites such as
Gumtree, 88DB and Locanto.
Drivers who offer such a service said they know it is illegal
but did not think they would get
caught. They usually offer an
hourly rate, day rate or per-trip
rate. One such driver is a former
sales executive who is currently
unemployed. She charges an
hourly rate of $40 and makes
about $400 a week chauffeuring
passengers in her Toyota Altis.
“It’s not enough to pay for the
monthly car instalments but it
helps,” said the 25-year-old,
who asked not to be named.
Luxury cars like BMWs and
Audis are also being hawked as
taxis. One Audi A5 driver said he
could make as much as $4,000 a
month. “I do everything; I can
pick up kids, take you to work,
and then take you home in the
evening,” he said, adding that he
sometimes doubles as a babysitter. “My customers like that I am
good with kids; I have to entertain them sometimes in the car,”
said the 32-year-old, who is also
a property speculator.
Drivers said that while their
prices are higher than taxis’,
their passengers prefer the familiarity and personalised service,
adding that passengers tend to
be well-to-do executives.
They said most bookings were
pre-arranged and they generally
did not get calls from people who
needed a taxi on the spot because
they could not get one outside.
National Taxi Association adviser Ang Hin Kee points out that
there are safety concerns with
such an arrangement.
“You don’t know whether the
insurance covers the passengers
involved (in case of accidents),”
he said, noting that in the case of
licensed taxi drivers, both the vehicles and drivers have to meet
standards and benchmarks.
Under the Road Traffic Act, it
is illegal to use, rent or hire out a
private car to convey passengers
for reward. Offenders could face
up to six months in jail, be fined
up to $3,000 and have their vehicles forfeited. For not having valid insurance, drivers would be
disqualified from driving for a
year, and could be jailed for up to
three months and fined a maximum of $1,000.
Mr Ang, an Ang Mo Kio GRC
MP, raised this issue in Parliament recently. He told The
Straits Times the Government
should find a way to legitimise
such services.
“My purpose is not to advocate (enforcement); these people
need to make a living too. The
Government should find a way to
legitimise them so they would be
able to operate on a level playing
field (with taxis),” he said.
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TOP OF THE NEWS A6
PAINTING
AWARD’S
BIG WINNER
Indonesian artist Antonius
Subiyanto, 34, was taken
completely by surprise
when his name was
announced as winner of
Singapore’s richest
painting award.
The work, titled Old
Stock Fresh Menu, is the
artist’s take on excessive
consumerism and
materialism. It took him
over a month to complete
it and he had made it just
for the award.
In its 33rd edition, the
UOB Painting of the Year
award continues
celebrating artistic talent
across South-east Asia.
Police, army chiefs sent to quell Batam tensions
INDONESIA’S national police
chief and army chief flew into
Batam yesterday to ease
tensions, following clashes on
Wednesday evening between
police and soldiers in which
one military officer died after
being shot.
The clash had started over
a staring incident. L ASIA A19
©T&CO. 2014
MCI (P) 073/02/2014 ★ ★
showing up in mortgagee sales
as the high-end market has suffered for longer, said Century 21
chief executive Ku Swee Yong.
Some may be speculators
caught by cooling measures, as
values in the high-end market
have fallen by as much as 25 per
cent and they may be unable to
service debt, said Chestertons
managing director Donald Han.
Fewer suburban apartments
are facing mortgagee sales, said
Colliers deputy managing director Grace Ng. The lower overall
price means they can service
loans more easily and find buyers if they default, she added.
In all, 19 mortgagee properties have been sold for $29.6 million in the 10 months, including
11 homes worth $21.59 million. A
big-ticket mortgagee sale this
year was a 2,863 sq ft apartment
in Draycott 8 off Stevens Road,
which sold for $5 million.
Unless government curbs are
relaxed, the total number of
mortgagee sale properties could
swell to 160 to 170 this year, five
times the 32 last year, said Ms
Ng. Still, this is fewer than the
195 mortgagee sale properties in
2009 and 270 in 2008.
Some believe mortgagee sales
are a better bargain given the eagerness of banks to get their
money back, but banks must observe a minimum price representing market value, said Mr Han.
Knight Frank auction head
Sharon Lee said auctions this
year have been better attended –
yesterday’s was a full house.
Said Mr Tan Choon Hin, managing director of group credit (retail) at UOB Group: “A bank will
repossess a property only as a
last resort.”
If sale proceeds cannot cover
the loan, the customer must
work out a reasonable repayment plan with the bank for the
outstanding amount, said Mr
Joseph Wong, head of consumer
credit risk at OCBC Bank.
[email protected]
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