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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