Tag Archives: COV

Resale prices of non-landed private residential units up 1.8 per cent in June: SRX

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.

Source – CNA – 5 Jul 2013

Calls for COVs to be scrapped during dialogue on housing

Some participants at the latest “Our Singapore Conversation” dialogue session on housing have called for the Cash-Over-Valuation component of HDB resale flats to be scrapped.

It was suggested that such an action would curb profiteering and speculation, and in turn bring down resale flat prices.

However, HDB has explained on it “HDB Speaks” website that COVs are subject to the dynamics of the housing market, prevailing economic factors and negotiations between buyer and seller.

Participants at the forum were also asked where they would like to see resale flat prices heading in the next one to two years.

About 60 per cent of participants said they would like prices to go down. Most of the others said they would like to see prices maintained, while only a handful suggested prices should increase.

Source – Today – 30 May 2013