COV for resale HDB drops

The Housing and Development Board (HDB) has announced that the latest figures from the transactions that it had received shows that the recent cash over valuation (COV) for resale HDB units has fallen to the lowest in 4 years. The results also show that the median COVs fell to $8,000 up from $11,000 a few months ago.

COV Resale HDB Drops

A report indicated that this is the first time that the COV for resale HDB has fell from $10,000 since 2009. It is also stated that COV might continue to fall in the months to come due to the rise in BTO flats as well as the cooling measures which was introduced lately by the Singapore government to combat the rise in housing prices in the past couple of years.

COV for Resale HDB Drops

Also, SRX has indicated that only an estimated 1,051 resale HDBs have been sold even though there there is a drop in COV. This indeed has shown that there is genuine drop in the demand for resale HDB as a drop in COV should have resulted in an increase in the number of transactions, all else being equal.

Also, the data indicated that 97 resale flats were sold below their valuation price which is higher than in October. This is significant as despite the fall in the total number of transactions, the number of units sold below valuation got higher.

Research studies have also shown that the non-landed private property prices have continued to drop till date. Prices have dropped 1.5 percent from the month of October. Volume have also dropped as well. An estimated 387 units were sold last month, compared to 502 units in October.

COV Resale HDB Drops

We may be able to see a spike in volume for resale non-landed private properties as The Hillford Condo in Jalan Jurong Kechil is launching soon and this may have an upspike in the volume transacted.

The Housing and Development Board (HDB) has announced that the latest figures from the transactions that it had received shows that the recent cash over valuation (COV) for resale HDB units has fallen to the lowest in 4 years. The results also show that the median COVs fell to $8,000 up from $11,000 a few months ago.
COV for resale HDB Drops
A report indicated that this is the first time that the COV has fell from $10,000 since 2009. It is also stated that COV might continue to fall in the months to come due to the rise in BTO flats as well as the cooling measures which was introduced lately by the Singapore government to combat the rise in housing prices in the past couple of years.
Also, SRX has indicated that only an estimated 1,051 resale flats have been sold even though there there is a drop in COV. This indeed has shown that there is genuine drop in the demand for resale HDB as a drop in COV should have resulted in an increase in the number of transactions, all else being equal.
Also, the data indicated that 97 resale flats were sold below their valuation price which is higher than in October. This is significant as despite the fall in the total number of transactions, the number of units sold below valuation got higher.
Research studies have also shown that the non-landed private property prices have continued to drop till date. Prices have dropped 1.5 percent from the month of October. Volume have also dropped as well. An estimated 387 units were sold last month, compared to 502 units in October.
We may be able to see a spike in volume for resale non-landed private properties as The Hillford Condo in Jalan Jurong Kechil is launching soon and this may have an upspike in the volume transacted.

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