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 146 PAGES IN SEVEN PARTS TO SUBSCRIBE: 6388-3838 www.sphsubscription.com.sg 90 cents A Singapore Press Holdings publication 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. dansonc@sph.com.sg 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. wrennie@sph.com.sg SINGAPORE TAKASHIMAYA S.C. 6735 8823 RAFFLES HOTEL ARCADE 6334 0168 CHANGI AIRPORT TERMINAL 2 6543 2443 THE SHOPPES AT MARINA BAY SANDS 6688 7728 CHANGI AIRPORT TERMINAL 3 6441 0018 | TIFFANY.COM