Tag Archives: HDB News

COV shoots up to $12,000

Posted on 25 Oct 2009 | Comments Off on COV shoots up to $12,000

HDB resale market hits new marks

Be ready to cough up even more hard cash if you are planning to buy a resale HDB flat any time soon, say analysts as the bouyant public residential market – in parallel with the private home sector – set record highs.

Housing board statistics on Friday confirmed what flat-seekers have been complaining about in recent months: The median cash over valuation (COV) – what a buyer has to pay in cash, over and above the bank’s valuation of the property – jumped four times to $12,000 during July to September, from $3,000 in the previous quarter.

Buyers in Yishun and Jurong West had to fork out the most in COV: On average, they paid $16,900. Analysts said this was because the valuation of flats in these two estates was generally lower than for units elsewhere, even though they offer comparable amenities and accessibility.

At the other end of the scale, those who bought resale flats in Pasir Ris paid $7,000 in COV on average.

With the number of new private homes sold hitting a high of 5,578 in Q3, the HDB resale market also set two new marks: First, its resale price index hit a new peak of 145.2. Second, the 11,649 units sold meant that the number of transactions within a quarter is the highest since HDB released such data in 2000. Continue reading →

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Your Insights

Posted on 24 Oct 2009 | Comments Off on Your Insights

Last week, we asked if private property owners should be allowed to buy resale Housing Board flats, and if the $8,000 household income ceiling to qualify for housing subsidies should be lowered to prevent ‘buying distortions’. More than 30 readers responded. Eight said that private property owners should be banned from buying flats, while another four thought otherwise. Eight readers wanted the $8,000 ceiling raised instead of lowered.

‘The Housing Board should increase the income ceiling for Design, Build and Sell Scheme flats to cater to the ‘Sandwich Class First-Timers’ who can afford them and need a home. Now people buying these flats are first-timers in their early 20s who are paying through their nose.’

Ms Jessy Teoh in an e-mail

‘If private property owners can buy resale HDB flats, lower- and middle-income Singaporeans – especially singles – will find it difficult to do so. Under HDB rules, singles cannot buy new HDB flats, so they are the ones who suffer the most.’

Ms Toh Siew Peng in an e-mail

‘Public housing will be out of reach for future generations of citizens if it is viewed as an investment asset as all investments are expected to appreciate in value. And if we allow permanent residents to purchase public housing, future prices of public housing could become nightmarish.’

Mr Andrew Michael Teo in an e-mail

‘I asked HDB if it was possible to set income rules in a way which allows the sandwich class to buy flats of a minimum amount, so that we do not compete with the majority. But HDB has not acknowledged that it is willing to look into it. It is neglecting a pool of Singaporeans like me. If you have an income lower than $8,000, you have a chance to buy a new flat, and three to five years later sell it to make a profit from the sandwich class!’ Continue reading →

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