Property RAR
Singapore Property - Contact us @ +65 9878 4688 or +65 90093586 right now
  • Home
  • About Us
    • Buying
    • Selling
    • Renting
    • Partners
  • Properties
    • La Fiesta at Seng Kang
    • La Fiesta @ Seng Kang
    • Nine Residences and Junction 9 at Yishun >
      • Nine Residences and Junction 9 at Yishun Floorplan
    • Hexacube Singapore Commercial at 160 Changi Road AIA >
      • Hexacube Singapore Commercial at 160 Changi Road AIA Floor plan
    • NorthPark (Northpoint) Residences Yishun Central MRT
  • News
  • Contact Us

More HDB resale flats being sold with zero COV

1/9/2013

0 Comments

 
Channel News Asia | 1 Sept 2013
Picture
SINGAPORE: More people are selling their Housing and Development Board (HDB) flats in the resale market without a cash premium.

The Singapore Real Estate Exchange (SRX) said transactions involving zero Cash-Over-Valuation (COV) have more than tripled, from 14 in January to 49 in July.

HDB in Singapore resale market likely to continue dropping. -- AFP PHOTO

The overall median COV dipped to a low of S$20,000 in July, the lowest since 2011.

SRX now said it is seeing more people selling their flats even below that level - without any cash premium.
Zero-COV transactions made up 1 per cent of all HDB resale transactions in January.

This went up to 3.9 per cent in July, and 5.7 per cent in August so far.

There have been 32 zero-COV transactions recorded by SRX in August so far.

On a yearly basis, zero-COV transactions made up 1.7 per cent of all HDB resale transactions in 2011, compared to 1.9 per cent in 2012.

From January till now, zero-COV transactions made up 2.1 per cent of all HDB transactions.

Christine Li, head of research and consultancy at OrangeTee, said: "Previously, I think it took about four to six weeks to close the deal. But now, it is taking longer. Some can be as long as four months.

"A lot of sellers are still asking for high COVs, but the buyer pool is shrinking because of the January cooling measures as well as the ramp up in BTO (Build-to-Order) supply.

"The seller actually has to compete with the BTOs to offer buyers the same kind of deals they can look for in the market."

According to SRX data, from the beginning of the year till July, 164 zero-COV transactions were recorded

The top five towns that have seen the most zero-COV transactions are Jurong West, Hougang, Woodlands, Punggol and Sengkang.

These are places where new BTO projects were launched by the HDB in the past year.

Property analysts have said that even though HDB resale flats are being sold with zero cash premium at valuation level, property sellers are still likely to make a profit from their transaction.

Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said: "If they were to have bought their flats brand new from the government, they would have bought it at a price that is below the current market price. Or even if they were to buy it as resale flats five years ago, during the financial crisis, chances are they would have bought it at a price that is cheaper than today."

With more residential units being completed this year, analysts said more sellers can be expected in the HDB resale market.

So more zero-COV transactions can be expected, and even some negative-COV transactions as well. 
0 Comments



Leave a Reply.

    Singapore Property News

    Singapore Property News.
    Do note that the news posted are representations from Singapore local sources and do not represent the views of R&R Real Estate Services. However, you are invited to comment and engage a discussion with us, should you have any views that you want to share.

    Archives

    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013

    Categories

    All
    Commercial
    Condominium
    Cooling Measures
    Council For Estate Agencies
    Developer
    Executive Condominium
    Foreigners
    Gdp
    Good Class Bungalow
    Government Policies
    HDB
    Industrial
    Interest Rate
    Mixed Development
    New Launches
    Permanent Residents (PR)
    Private Homes
    Singapore Land For Sale
    South East Asia
    Total Debt Servicing Ratio

    RSS Feed


Powered by Create your own unique website with customizable templates.
Copyright 2012-2014 PropertyRAR, R & R Real Estate Services Singapore Property. All rights reserved.