mr funny
01-08-11, 03:21
http://www.straitstimes.com/PrimeNews/Story/STIStory_694300.html
Jul 25, 2011
Khaw: COV data could be misleading
Minister explains decision not to reveal overall median figure across all estates
By Mavis Toh
LIKE comparing apples and oranges.
National Development Minister Khaw Boon Wan used this analogy yesterday to explain why the Housing Board has stopped releasing the figure for the overall median cash premium paid by buyers over and above the valuation of flats across all estates.
He also said that while the Government is concerned about rising resale flat prices, the problem will be largely resolved in three to five years, when build-to-order (BTO) flats are ready.
Referring to the overall cash-over-valuation (COV) figure, Mr Khaw said looking at it in this way was irrelevant and could be misleading because there are many other variables involved.
For example, in one month, there could be more flats sold in an area like Ang Mo Kio, where property prices tend to be higher. In the next month, more may be sold in Woodlands, where prices are typically lower.
'To me it is very apple to oranges,' said Mr Khaw. 'If housing type changes month to month and location changes month to month, the figures will move up or down, and you think prices are going up or down. I think that is a wrong conclusion.'
'I don't think we should reflect those data because it is misleading,' he told reporters at a community event in Sembawang.
Mr Khaw added that the relevant information on transaction price and median COV of flat types in various estates that flat buyers need is still available.
His comments came two days after the HDB said it will no longer disclose the overall median COV figure nationwide in its usual quarterly releases.
It has also stopped providing overall median COV figures for different housing estates and flat types.
On the same day, it released fresh figures showing resale flat prices rising 3.1 per cent to a fresh record in the second quarter.
Asked yesterday about rising resale flat prices, Mr Khaw said they are due to an imbalance in supply and demand. He urged Singaporeans to be patient as tackling these two issues will take time.
To increase supply, he has already launched two housing projects, and two more will be released this year, together with a launch of surplus flats.
HDB is on track to deliver 25,000 new flats this year.
As for demand, he said the property cooling measures implemented earlier this year have also removed unnecessary demand from speculators.
He also urged upgraders to hold on instead of entering the market now as prices are currently 'too high'.
Mr Khaw believes that couples will feel less anxious and more reassured once they get to select a flat, even though it may take three years for the flat to be ready.
'BTO will have an effect, new housing plans will have an effect on the resale market. The more I push out, I am sure there is some influence,' he said. 'Prices will stabilise, I am quite confident.'
[email protected]
Jul 25, 2011
Khaw: COV data could be misleading
Minister explains decision not to reveal overall median figure across all estates
By Mavis Toh
LIKE comparing apples and oranges.
National Development Minister Khaw Boon Wan used this analogy yesterday to explain why the Housing Board has stopped releasing the figure for the overall median cash premium paid by buyers over and above the valuation of flats across all estates.
He also said that while the Government is concerned about rising resale flat prices, the problem will be largely resolved in three to five years, when build-to-order (BTO) flats are ready.
Referring to the overall cash-over-valuation (COV) figure, Mr Khaw said looking at it in this way was irrelevant and could be misleading because there are many other variables involved.
For example, in one month, there could be more flats sold in an area like Ang Mo Kio, where property prices tend to be higher. In the next month, more may be sold in Woodlands, where prices are typically lower.
'To me it is very apple to oranges,' said Mr Khaw. 'If housing type changes month to month and location changes month to month, the figures will move up or down, and you think prices are going up or down. I think that is a wrong conclusion.'
'I don't think we should reflect those data because it is misleading,' he told reporters at a community event in Sembawang.
Mr Khaw added that the relevant information on transaction price and median COV of flat types in various estates that flat buyers need is still available.
His comments came two days after the HDB said it will no longer disclose the overall median COV figure nationwide in its usual quarterly releases.
It has also stopped providing overall median COV figures for different housing estates and flat types.
On the same day, it released fresh figures showing resale flat prices rising 3.1 per cent to a fresh record in the second quarter.
Asked yesterday about rising resale flat prices, Mr Khaw said they are due to an imbalance in supply and demand. He urged Singaporeans to be patient as tackling these two issues will take time.
To increase supply, he has already launched two housing projects, and two more will be released this year, together with a launch of surplus flats.
HDB is on track to deliver 25,000 new flats this year.
As for demand, he said the property cooling measures implemented earlier this year have also removed unnecessary demand from speculators.
He also urged upgraders to hold on instead of entering the market now as prices are currently 'too high'.
Mr Khaw believes that couples will feel less anxious and more reassured once they get to select a flat, even though it may take three years for the flat to be ready.
'BTO will have an effect, new housing plans will have an effect on the resale market. The more I push out, I am sure there is some influence,' he said. 'Prices will stabilise, I am quite confident.'
[email protected]