Daily Archives: 20 Aug 2009

DC rates poised to change amid churn

Posted on 20 Aug 2009 | Comments Off on DC rates poised to change amid churn

Commercial DC rates may dip while rates for landed homes may go up in some areas

With revisions to development charges (DC) due on Sept 1, some property pundits say that the Chief Valuer (CV) may have a challenge on her hands, given the shift in the direction of the residential property market.

‘Chief valuer employs historical data to revise DC rates that will be applied over the next six months. But these historical transactions may be too far off from the market conditions in the next half year,’ says JLL’s head of SE Asia research Chua Yang Liang. ‘In short, the CV has the difficult task of balancing past decline and future growth. The key question is: How much weight should she place on the current market sentiment?’

Agreeing, Colliers International director Tay Huey Ying says: ‘The main challenge facing the CV in assessing DC rates this round would be to assess accurately the conditions of the various sectors of the property market for the next six months.’ And while the economic outlook Continue reading →

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Cash upfront for HDB resale flats doubles in a month

Posted on 20 Aug 2009 | Comments Off on Cash upfront for HDB resale flats doubles in a month

THE amount of cash needed upfront to buy an HDB flat resale roughly doubled last month as the exuberant sentiment in the private homes market spilled over into public housing.

Three property agencies told The Straits Times that the median cash-over-valuation, or COV, has shot up across all flat types and has gone above $10,000 for some units.

In two of the more startling examples, a five-room flat at Depot Road sold for $70,000 above its $490,000 valuation, while an executive flat in Pasir Ris sold for $35,000 above its COV of $550,000, according to figures from PropNex and the HSR Property Group.

COV is cash that buyers pay to a seller over and above a flat’s market valuation. It cannot be covered by a mortgage or CPF money, and so serves as an indicator of flat affordability.

What is surprising is the speed at which it doubled in a month, said Mr Colin Tan, Chesterton Suntec International’s research and consultancy director. Continue reading →

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Posted in HDB

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