Tag Archives: HDB News

Sky-high prices

The headline-grabbing COV sums started to be noticed only during the market run-up in 2006-2007, said ERA Asia Pacific associate director Eugene Lim. During that time, some buyers were willing to pay COV sums of $100,000 to $150,000.

Willing buyer, willing seller – few people get fazed when private properties change hands this way.

But unhappy HDB flat hunters, clearly not in the ‘willing buyer’ category, have recently complained about the affordability of public homes as resale flat prices go up, up, up.

This is because these days, the agreed price for an HDB resale flat typically includes a cash premium on top of the official valuation determined by an HDB panel of independent professional valuers.  Any premium – known as the cash over valuation (COV) – above this valuation has to be paid upfront in cold cash. This favours a buyer who is cash-rich. Continue reading →