HDB moves to reduce focus on COV
HDB to accept valuation requests only after resale flat buyers are granted an Option to Purchase; resale prices to be published daily
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BY SUMITA SREEDHARAN
PUBLISHED: MARCH 10, 5:13 PM UPDATED: MARCH 10, 5:15 PM
SINGAPORE — To reduce the focus on Cash-Over-Valuation (COV) in negotiations during the sale of a flat, the Housing and Development Board (HDB) will only accept valuation requests from resale flat buyers after they have been granted an Option to Purchase by flat sellers.
National Development Minister Khaw Boon Wan, who announced this change in Parliament, said this will restore the original intention of valuation, which is to help buyers obtain a housing loan. This change will take effect from 5pm today (March 10).
The HDB will also publish daily prices of resale transactions as soon as they are registered, aimed at getting negotiations to focus on recent transaction prices and reduce the focus on COVs. Currently, resale prices are published twice a month.
While the balance between buyers and sellers has been re-titled, the market is not at its optimal state, and thus it is premature to withdraw cooling measures, Mr Khaw said.
To further protect property buyers, the Council for Estate Agencies (CEA) will launch an online guide to provide general tips to consumers who are thinking of buying a foreign property.
The CEA will also step up its effort to regulate estate agents marketing overseas property developments here and Mr Khaw advised members of the public to report to the CEA any marketing activities by unlicensed foreign estate agents, so that the CEA can investigate and take appropriate actions.
- wong chee tat :)
Showing posts with label cov. Show all posts
Showing posts with label cov. Show all posts
Monday, March 10, 2014
Saturday, September 7, 2013
COV for HDB resale flats drops to 4-year low
COV for HDB resale flats drops to 4-year low
By Olivia Siong
POSTED: 06 Sep 2013 8:53 PM
The overall Cash-Over-Valuation for HDB resale flats dropped to S$18,000 in August, the lowest level since July 2009.
SINGAPORE: The cash premium, or Cash-Over-Valuation (COV), for Housing and Development Board (HDB) resale flats has reached a four-year low.
According to the Singapore Real Estate Exchange (SRX) monthly flash report, overall COV dropped to S$18,000 in August, the lowest level since July 2009.
For the first time since 2006, SRX said HDB resale flat prices have fallen for the fourth straight month. Overall HDB resale prices slipped 0.7 per cent in August.
This can be partly attributed to the decline of cash premiums being paid for HDB resale flats.
The overall COV was S$20,000 in July. This fell by S$2,000 or 10 per cent to reach S$18,000 in August.
Some property analysts attributed this to the ramped up supply of new flats being launched by the HDB and the introduction of various loan restrictions like the Total Debt Servicing Ratio which was announced in June where only 60 per cent of one's income can go towards servicing a loan.
International Property Advisor's chief executive officer, Ku Swee Yong, said: "The downward trend of COVs is partly influenced by the new measures at the end of June called the Total Debt Service Ratio (TDSR).
"Many home buyers find that they are unable to borrow as much as expected, so it has affected the larger size resale HDBs a little bit more than the three-room and four-room HDB (flats).
"In fact, more young couples are probably shifting their sights down one notch -- instead of stretching themselves for a five-room resale or an executive resale, they're going after a four-room HDB."
According to SRX, executive flats in Punggol registered the lowest median COV of negative S$13,000, which means they are sold at S$13,000 below valuation.
Out of three transactions recorded, two were sold below valuation.
On the flip side, executive flats in Bishan saw the highest premium. The median COV was S$120,000.
Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants, said: "There has been a huge supply of BTO flats offered in the Punggol area in the last two to three years.
"Because of that, it has drawn away potential buyers from the resale market to the BTO market. The BTO flats are all priced lower than the resale flat prices.
"While in Bishan area, it's still quite a popular area... there are a few very popular primary and secondary schools in the area. Furthermore, there is a very thin supply of new flats. As a result, it's still a seller's market in that town."
With tighter loan measures and home buyers being more cash strapped as a result, property analysts expect COVs to continue to trend downwards. They also expect more HDB resale flats to be sold without a cash premium, or at below valuation.
This is already starting to show. Zero-COV transactions made up just one per cent of all HDB resale transactions in January. This went up to 5.3 per cent in August.
As for resale transaction volume, flash estimates showed that while the numbers remained roughly the same in July (1,286) and August (1,280), this was a 29 per cent drop year-on-year.
Property analysts said this is likely due to more home owners choosing to rent out their HDB flats.
- CNA/fa
- wong chee tat :)
By Olivia Siong
POSTED: 06 Sep 2013 8:53 PM
The overall Cash-Over-Valuation for HDB resale flats dropped to S$18,000 in August, the lowest level since July 2009.
SINGAPORE: The cash premium, or Cash-Over-Valuation (COV), for Housing and Development Board (HDB) resale flats has reached a four-year low.
According to the Singapore Real Estate Exchange (SRX) monthly flash report, overall COV dropped to S$18,000 in August, the lowest level since July 2009.
For the first time since 2006, SRX said HDB resale flat prices have fallen for the fourth straight month. Overall HDB resale prices slipped 0.7 per cent in August.
This can be partly attributed to the decline of cash premiums being paid for HDB resale flats.
The overall COV was S$20,000 in July. This fell by S$2,000 or 10 per cent to reach S$18,000 in August.
Some property analysts attributed this to the ramped up supply of new flats being launched by the HDB and the introduction of various loan restrictions like the Total Debt Servicing Ratio which was announced in June where only 60 per cent of one's income can go towards servicing a loan.
International Property Advisor's chief executive officer, Ku Swee Yong, said: "The downward trend of COVs is partly influenced by the new measures at the end of June called the Total Debt Service Ratio (TDSR).
"Many home buyers find that they are unable to borrow as much as expected, so it has affected the larger size resale HDBs a little bit more than the three-room and four-room HDB (flats).
"In fact, more young couples are probably shifting their sights down one notch -- instead of stretching themselves for a five-room resale or an executive resale, they're going after a four-room HDB."
According to SRX, executive flats in Punggol registered the lowest median COV of negative S$13,000, which means they are sold at S$13,000 below valuation.
Out of three transactions recorded, two were sold below valuation.
On the flip side, executive flats in Bishan saw the highest premium. The median COV was S$120,000.
Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants, said: "There has been a huge supply of BTO flats offered in the Punggol area in the last two to three years.
"Because of that, it has drawn away potential buyers from the resale market to the BTO market. The BTO flats are all priced lower than the resale flat prices.
"While in Bishan area, it's still quite a popular area... there are a few very popular primary and secondary schools in the area. Furthermore, there is a very thin supply of new flats. As a result, it's still a seller's market in that town."
With tighter loan measures and home buyers being more cash strapped as a result, property analysts expect COVs to continue to trend downwards. They also expect more HDB resale flats to be sold without a cash premium, or at below valuation.
This is already starting to show. Zero-COV transactions made up just one per cent of all HDB resale transactions in January. This went up to 5.3 per cent in August.
As for resale transaction volume, flash estimates showed that while the numbers remained roughly the same in July (1,286) and August (1,280), this was a 29 per cent drop year-on-year.
Property analysts said this is likely due to more home owners choosing to rent out their HDB flats.
- CNA/fa
- wong chee tat :)
Tuesday, August 27, 2013
More HDB resale flats being sold with zero COV
More HDB resale flats being sold with zero COV
By Olivia Siong
POSTED: 26 Aug 2013 9:54 PM
More people are selling their HDB flats in the resale market without a cash premium. The Singapore Real Estate Exchange said transactions involving zero Cash-Over-Valuation have more than tripled.
SINGAPORE: More people are selling their Housing and Development Board (HDB) flats in the resale market without a cash premium.
The Singapore Real Estate Exchange (SRX) said transactions involving zero Cash-Over-Valuation (COV) have more than tripled, from 14 in January to 49 in July.
The overall median COV dipped to a low of S$20,000 in July, the lowest since 2011.
SRX now said it is seeing more people selling their flats even below that level - without any cash premium.
Zero-COV transactions made up 1 per cent of all HDB resale transactions in January.
This went up to 3.9 per cent in July, and 5.7 per cent in August so far.
There have been 32 zero-COV transactions recorded by SRX in August so far.
On a yearly basis, zero-COV transactions made up 1.7 per cent of all HDB resale transactions in 2011, compared to 1.9 per cent in 2012.
From January till now, zero-COV transactions made up 2.1 per cent of all HDB transactions.
Christine Li, head of research and consultancy at OrangeTee, said: "Previously, I think it took about four to six weeks to close the deal. But now, it is taking longer. Some can be as long as four months.
"A lot of sellers are still asking for high COVs, but the buyer pool is shrinking because of the January cooling measures as well as the ramp up in BTO (Build-to-Order) supply.
"The seller actually has to compete with the BTOs to offer buyers the same kind of deals they can look for in the market."
According to SRX data, from the beginning of the year till July, 164 zero-COV transactions were recorded
The top five towns that have seen the most zero-COV transactions are Jurong West, Hougang, Woodlands, Punggol and Sengkang.
These are places where new BTO projects were launched by the HDB in the past year.
Property analysts have said that even though HDB resale flats are being sold with zero cash premium at valuation level, property sellers are still likely to make a profit from their transaction.
Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said: "If they were to have bought their flats brand new from the government, they would have bought it at a price that is below the current market price. Or even if they were to buy it as resale flats five years ago, during the financial crisis, chances are they would have bought it at a price that is cheaper than today."
With more residential units being completed this year, analysts said more sellers can be expected in the HDB resale market.
So more zero-COV transactions can be expected, and even some negative-COV transactions as well.
- CNA/ms
- wong chee tat :)
By Olivia Siong
POSTED: 26 Aug 2013 9:54 PM
More people are selling their HDB flats in the resale market without a cash premium. The Singapore Real Estate Exchange said transactions involving zero Cash-Over-Valuation have more than tripled.
SINGAPORE: More people are selling their Housing and Development Board (HDB) flats in the resale market without a cash premium.
The Singapore Real Estate Exchange (SRX) said transactions involving zero Cash-Over-Valuation (COV) have more than tripled, from 14 in January to 49 in July.
The overall median COV dipped to a low of S$20,000 in July, the lowest since 2011.
SRX now said it is seeing more people selling their flats even below that level - without any cash premium.
Zero-COV transactions made up 1 per cent of all HDB resale transactions in January.
This went up to 3.9 per cent in July, and 5.7 per cent in August so far.
There have been 32 zero-COV transactions recorded by SRX in August so far.
On a yearly basis, zero-COV transactions made up 1.7 per cent of all HDB resale transactions in 2011, compared to 1.9 per cent in 2012.
From January till now, zero-COV transactions made up 2.1 per cent of all HDB transactions.
Christine Li, head of research and consultancy at OrangeTee, said: "Previously, I think it took about four to six weeks to close the deal. But now, it is taking longer. Some can be as long as four months.
"A lot of sellers are still asking for high COVs, but the buyer pool is shrinking because of the January cooling measures as well as the ramp up in BTO (Build-to-Order) supply.
"The seller actually has to compete with the BTOs to offer buyers the same kind of deals they can look for in the market."
According to SRX data, from the beginning of the year till July, 164 zero-COV transactions were recorded
The top five towns that have seen the most zero-COV transactions are Jurong West, Hougang, Woodlands, Punggol and Sengkang.
These are places where new BTO projects were launched by the HDB in the past year.
Property analysts have said that even though HDB resale flats are being sold with zero cash premium at valuation level, property sellers are still likely to make a profit from their transaction.
Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said: "If they were to have bought their flats brand new from the government, they would have bought it at a price that is below the current market price. Or even if they were to buy it as resale flats five years ago, during the financial crisis, chances are they would have bought it at a price that is cheaper than today."
With more residential units being completed this year, analysts said more sellers can be expected in the HDB resale market.
So more zero-COV transactions can be expected, and even some negative-COV transactions as well.
- CNA/ms
- wong chee tat :)
Thursday, August 8, 2013
Number of resale flats with COVs exceeding S$100,000 falls 20% on-quarter
Number of resale flats with COVs exceeding S$100,000 falls 20% on-quarter
By Lip Kwok Wai
POSTED: 09 Jul 2013 10:03 PM
With the drop in resale flat transactions, the number of units with high Cash-over-Valuations (COVs) has fallen too.
SINGAPORE: With the drop in resale flat transactions, the number of units with high Cash-over-Valuations (COVs) has fallen too.
According to data from the Singapore Real Estate Exchange, in the first quarter of 2013, there were 56 flats with COVs exceeding S$100,000.
The figure dropped some 20 per cent to 44 in the second quarter.
In the first quarter, the top five towns with most flats commanding COV values exceeding S$100,000 were Bishan, Toa Payoh, Geylang, Tampines and Ang Mo Kio.
In the second quarter, Bishan and Toa Payoh still emerged tops, followed by Pasir Ris, Hougang and Bukit Merah.
Analysts felt that flats in Bishan and Toa Payoh are popular so it is not surprising that buyers are still willing to pay higher prices.
Flats in Pasir Ris and Hougang could command high COVs, perhaps because they are near the MRT stations, have larger floor areas or have had appealing renovations.
Analysts also pointed out that with the Housing and Development Board launching more Built-to-Order flats, the resale market has cooled.
Median COV values have dropped from S$33,000 in the first quarter to S$28,000 in the second quarter.
In the next six months, they could drop further.
Chris Koh, director of Chris International, said: "I won't be surprised if it will be in the range of S$15,000 for median COV, which to me, is a good level, because that would mean that we are looking at maybe COVs of sometimes S$10,000 for flats that are not in very prime locations and are not renovated, for example, versus some that may be slightly higher than $15,000."
- CNA/xq
- wong chee tat :)
By Lip Kwok Wai
POSTED: 09 Jul 2013 10:03 PM
With the drop in resale flat transactions, the number of units with high Cash-over-Valuations (COVs) has fallen too.
SINGAPORE: With the drop in resale flat transactions, the number of units with high Cash-over-Valuations (COVs) has fallen too.
According to data from the Singapore Real Estate Exchange, in the first quarter of 2013, there were 56 flats with COVs exceeding S$100,000.
The figure dropped some 20 per cent to 44 in the second quarter.
In the first quarter, the top five towns with most flats commanding COV values exceeding S$100,000 were Bishan, Toa Payoh, Geylang, Tampines and Ang Mo Kio.
In the second quarter, Bishan and Toa Payoh still emerged tops, followed by Pasir Ris, Hougang and Bukit Merah.
Analysts felt that flats in Bishan and Toa Payoh are popular so it is not surprising that buyers are still willing to pay higher prices.
Flats in Pasir Ris and Hougang could command high COVs, perhaps because they are near the MRT stations, have larger floor areas or have had appealing renovations.
Analysts also pointed out that with the Housing and Development Board launching more Built-to-Order flats, the resale market has cooled.
Median COV values have dropped from S$33,000 in the first quarter to S$28,000 in the second quarter.
In the next six months, they could drop further.
Chris Koh, director of Chris International, said: "I won't be surprised if it will be in the range of S$15,000 for median COV, which to me, is a good level, because that would mean that we are looking at maybe COVs of sometimes S$10,000 for flats that are not in very prime locations and are not renovated, for example, versus some that may be slightly higher than $15,000."
- CNA/xq
- wong chee tat :)
HDB COV dips to lowest level in 2.5 years
HDB COV dips to lowest level in 2.5 years
POSTED: 07 Aug 2013 12:39 PM
UPDATED: 07 Aug 2013 11:08 PM
The overall cash premium, or Cash-Over-Valuation (COV), that buyers pay for HDB resale flats has dropped to its lowest level in about two and a half years.
SINGAPORE: The overall cash premium, or Cash-Over-Valuation (COV), that buyers pay for HDB resale flats has dropped to its lowest level in about two and a half years, according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX)
Overall, HDB COV in July dropped S$4,000 from June to reach S$20,000 -- the lowest level since January 2011.
It is also down sharply from the peak of S$35,000 recorded in January this year.
SRX said overall COV has dropped by 43 per cent year-to-date.
This comes on the back of a 0.5-per-cent dip in overall HDB resale prices, the third consecutive monthly decline.
Christine Li, head of research & consultancy at property consultancy firm OrangeTee, said: "The drop in COV is expected.
"After the government imposed the mortgage servicing ratio on HDB loans, we do see some buyers staying away from the bigger HDB flats because their loan quantum is affected. As a result, that will affect their ability to pay high COVs."
SRX said HDB resale volume remained relatively flat in July compared to June, with about 1,270 resale transactions recorded.
Year-on-year, July's resale volume represented a 36-per-cent drop from the same period in 2012.
An estimated 1,760 HDB flats were rented in July, up by 13 per cent from June. The number also exceeded the 1,632 HDB rental transactions in July last year.
Meanwhile, resale prices of non-landed private homes rose marginally by 0.1 per cent in July, compared to the 0.8-per-cent increase in June.
This was led by the 1.2-per-cent price gain seen in the city fringes.
Resale prices of non-landed private homes in the city region fell 0.5 per cent, while those in the suburban areas slipped 0.4 per cent.
An estimated 670 non-landed private homes were transacted in July, compared to 640 units in June.
Eugene Lim, key executive officer at ERA, said: "In the city fringe there are no new projects being launched. The buyers in the city fringe areas are actually investors looking to pick up buys for investment purposes. So naturally you see an upward movement of prices. The reason why suburban prices have fallen is that majority of the new launches in suburban areas. So these new launches are drawing the bulk of the buyers to buy from new launches."
Market watchers said the central bank's latest curbs on housing loans is likely to dampen demand for private properties in the months ahead.
Overall, rental prices for non-landed private residential in July inched upwards by 0.2 per cent from June, reversing the decline seen in the past three months.
Rental prices in the city region gained 1.4 per cent, while rentals in the city fringes fell 0.9 per cent and suburban region declined 0.4 per cent.
- CNA/jc/fa/xq
- wong chee tat :)
POSTED: 07 Aug 2013 12:39 PM
UPDATED: 07 Aug 2013 11:08 PM
The overall cash premium, or Cash-Over-Valuation (COV), that buyers pay for HDB resale flats has dropped to its lowest level in about two and a half years.
SINGAPORE: The overall cash premium, or Cash-Over-Valuation (COV), that buyers pay for HDB resale flats has dropped to its lowest level in about two and a half years, according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX)
Overall, HDB COV in July dropped S$4,000 from June to reach S$20,000 -- the lowest level since January 2011.
It is also down sharply from the peak of S$35,000 recorded in January this year.
SRX said overall COV has dropped by 43 per cent year-to-date.
This comes on the back of a 0.5-per-cent dip in overall HDB resale prices, the third consecutive monthly decline.
Christine Li, head of research & consultancy at property consultancy firm OrangeTee, said: "The drop in COV is expected.
"After the government imposed the mortgage servicing ratio on HDB loans, we do see some buyers staying away from the bigger HDB flats because their loan quantum is affected. As a result, that will affect their ability to pay high COVs."
SRX said HDB resale volume remained relatively flat in July compared to June, with about 1,270 resale transactions recorded.
Year-on-year, July's resale volume represented a 36-per-cent drop from the same period in 2012.
An estimated 1,760 HDB flats were rented in July, up by 13 per cent from June. The number also exceeded the 1,632 HDB rental transactions in July last year.
Meanwhile, resale prices of non-landed private homes rose marginally by 0.1 per cent in July, compared to the 0.8-per-cent increase in June.
This was led by the 1.2-per-cent price gain seen in the city fringes.
Resale prices of non-landed private homes in the city region fell 0.5 per cent, while those in the suburban areas slipped 0.4 per cent.
An estimated 670 non-landed private homes were transacted in July, compared to 640 units in June.
Eugene Lim, key executive officer at ERA, said: "In the city fringe there are no new projects being launched. The buyers in the city fringe areas are actually investors looking to pick up buys for investment purposes. So naturally you see an upward movement of prices. The reason why suburban prices have fallen is that majority of the new launches in suburban areas. So these new launches are drawing the bulk of the buyers to buy from new launches."
Market watchers said the central bank's latest curbs on housing loans is likely to dampen demand for private properties in the months ahead.
Overall, rental prices for non-landed private residential in July inched upwards by 0.2 per cent from June, reversing the decline seen in the past three months.
Rental prices in the city region gained 1.4 per cent, while rentals in the city fringes fell 0.9 per cent and suburban region declined 0.4 per cent.
- CNA/jc/fa/xq
- wong chee tat :)
Friday, July 5, 2013
Resale prices of non-landed private residential units up 1.8 per cent in June: SRX
Resale prices of non-landed private residential units up 1.8 per cent in June: SRX
POSTED: 05 Jul 2013 11:24 AM
Resale prices of non-landed private residential units showed an overall increase of 1.8 per cent in June 2013. This is according to a flash report by the Singapore Real Estate Exchange (SRX).
SINGAPORE: Resale prices of non-landed private residential units showed an overall increase of 1.8 per cent in June 2013. This is according to a flash report by the Singapore Real Estate Exchange (SRX).
An estimated 605 non-landed units were transacted in June. SRX said this is a 21 per cent drop from the volume of 762 units in May 2013. When compared to June 2012, it is a 38 per cent decrease in resale transaction volume.
HDB resale prices slipped 0.1 per cent in June. SRX said this is the second consecutive marginal monthly drop in resale prices.
According to flash estimates, 1,210 HDB flats were sold in the resale market in June -- about nine per cent less than May, where there were 1,324 resale cases. It is 32 per cent less than the resale volume in June 2012, where 1,790 HDB resale flats were transacted.
Overall HDB cash-over-valuation (COV) in June dropped S$3,000 to end at S$24,000. This is lower than the COV of S$25,000 registered in February and April 2012.
Overall rental prices for non-landed private residential in June slipped 0.2 per cent from May. This marks a fifth consecutive monthly drop in overall rents.
Overall HDB monthly rental rates in June remained unchanged at S$2,400.
An estimated 1,410 HDB flats were rented in June, 9 per cent less than May's 1,554 rental transactions. It is slightly less than the 1,480 flats rented in June 2012.
- CNA/ac
- wong chee tat :)
POSTED: 05 Jul 2013 11:24 AM
Resale prices of non-landed private residential units showed an overall increase of 1.8 per cent in June 2013. This is according to a flash report by the Singapore Real Estate Exchange (SRX).
SINGAPORE: Resale prices of non-landed private residential units showed an overall increase of 1.8 per cent in June 2013. This is according to a flash report by the Singapore Real Estate Exchange (SRX).
An estimated 605 non-landed units were transacted in June. SRX said this is a 21 per cent drop from the volume of 762 units in May 2013. When compared to June 2012, it is a 38 per cent decrease in resale transaction volume.
HDB resale prices slipped 0.1 per cent in June. SRX said this is the second consecutive marginal monthly drop in resale prices.
According to flash estimates, 1,210 HDB flats were sold in the resale market in June -- about nine per cent less than May, where there were 1,324 resale cases. It is 32 per cent less than the resale volume in June 2012, where 1,790 HDB resale flats were transacted.
Overall HDB cash-over-valuation (COV) in June dropped S$3,000 to end at S$24,000. This is lower than the COV of S$25,000 registered in February and April 2012.
Overall rental prices for non-landed private residential in June slipped 0.2 per cent from May. This marks a fifth consecutive monthly drop in overall rents.
Overall HDB monthly rental rates in June remained unchanged at S$2,400.
An estimated 1,410 HDB flats were rented in June, 9 per cent less than May's 1,554 rental transactions. It is slightly less than the 1,480 flats rented in June 2012.
- CNA/ac
- wong chee tat :)
COV falls to lowest in about a year
COV falls to lowest in about a year
By Olivia Siong
POSTED: 05 Jul 2013 6:32 PM
The overall median Cash-Over-Valuation (COV) for HDB resale flats fell by 15.2 per cent in the second quarter of the year to S$28,000, down from S$33,000 in the first quarter.
SINGAPORE: The overall cash premium or Cash-Over-Valuation (COV) for HDB resale flats has fallen to its lowest in about a year.
This is according to flash estimates by the Singapore Real Estate Exchange (SRX).
The overall median COV fell by 15.2 per cent in the second quarter of the year to S$28,000, down from S$33,000 in the first quarter.
The previous low was S$26,000 in the second quarter of 2012.
Meanwhile HDB resale transactions fell by 31 per cent in the first half of this year compared with the same period in 2012.
A total of 7,555 flats were transacted in the first half of 2013.
ERA Realty Network's key executive officer, Eugene Lim, said: "The June COV was $24,000. It has trended downwards. We are likely to see COV continue to trend downwards and quite possibly by the last quarter, we could see COVs around the $20,000 region.
"When it hits the $20,000 region, I think we may see more buyers entering the market, because it's a figure that's generally acceptable to buyers.
"(So we could have more buyers entering the market) instead of them wanting to wait three years for a HDB BTO (flat)."
On the private housing front, transactions for non-landed private resale units fell by 42 per cent in the second quarter, compared with the same period one year ago.
But the 2,024 units moved in the second quarter of this year were slightly higher than in the first quarter.
In the month of June, resale prices of non-landed private residential units showed an overall increase of 1.8 per cent, according to flash SRX estimates.
- CNA/ir
- wong chee tat :)
By Olivia Siong
POSTED: 05 Jul 2013 6:32 PM
The overall median Cash-Over-Valuation (COV) for HDB resale flats fell by 15.2 per cent in the second quarter of the year to S$28,000, down from S$33,000 in the first quarter.
SINGAPORE: The overall cash premium or Cash-Over-Valuation (COV) for HDB resale flats has fallen to its lowest in about a year.
This is according to flash estimates by the Singapore Real Estate Exchange (SRX).
The overall median COV fell by 15.2 per cent in the second quarter of the year to S$28,000, down from S$33,000 in the first quarter.
The previous low was S$26,000 in the second quarter of 2012.
Meanwhile HDB resale transactions fell by 31 per cent in the first half of this year compared with the same period in 2012.
A total of 7,555 flats were transacted in the first half of 2013.
ERA Realty Network's key executive officer, Eugene Lim, said: "The June COV was $24,000. It has trended downwards. We are likely to see COV continue to trend downwards and quite possibly by the last quarter, we could see COVs around the $20,000 region.
"When it hits the $20,000 region, I think we may see more buyers entering the market, because it's a figure that's generally acceptable to buyers.
"(So we could have more buyers entering the market) instead of them wanting to wait three years for a HDB BTO (flat)."
On the private housing front, transactions for non-landed private resale units fell by 42 per cent in the second quarter, compared with the same period one year ago.
But the 2,024 units moved in the second quarter of this year were slightly higher than in the first quarter.
In the month of June, resale prices of non-landed private residential units showed an overall increase of 1.8 per cent, according to flash SRX estimates.
- CNA/ir
- wong chee tat :)
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