reporter2
04-11-11, 01:43
http://www.straitstimes.com/PrimeNews/Story/STIStory_728214.html
HDB gives out less COV data, but figures show a rise
Published on Oct 29, 2011
THE Housing Board (HDB) yesterday stopped issuing yet another component of cash-over-valuation (COV) data in its quarterly releases.
This time, it left out the median COV figures for flat types in HDB estates where fewer than 20 sales were made in the three months to Sept 30.
The COV is the amount a buyer pays over and above the valuation of a Housing Board resale flat.
In the past, the HDB provided the median COV figures for all estates even if there were fewer than 20 transactions, but added the caveat that such figures may not be representative.
However, in the quarterly release yesterday, the HDB said the median COV of certain flat types in towns where there were fewer than 20 resale transactions 'are not shown as they may not be representative'.
This follows a move in July to stop issuing data on overall COV paid for HDB resale flats. National Development Minister Khaw Boon Wan said the figures could be misleading, so he took a 'middle way' - by issuing median COV data by HDB towns and flat types, but with no overall figures.
Despite the lack of overall figures, a closer look at COV figures shows them inching upwards. The lowest median COV for a three-room flat in any HDB town in the second quarter was $25,000 (in Ang Mo Kio and Toa Payoh), while in the third quarter the lowest equivalent was $27,900 (in Marine Parade).
For four-room flats, the lowest recorded median COV in the second quarter was $27,000 in Sembawang. In the third quarter, this had risen to $35,000.
Mr Chris Koh, director of property firm Dennis Wee Group, said that based on its transactions, most resale deals are made with COVs more than $30,000 these days. 'For larger flats such as five-room and executives, the norm is $50,000 to $70,000,' he said.
ERA Realty key executive officer Eugene Lim yesterday called for COV figures not to be published.
'This facilitates sellers and buyers to negotiate based on price rather than COV,' he said. 'Buyers typically are able to make an informed decision by first obtaining an indicative valuation (in the private property market). Why can't the same practice be adopted for HDB flats?'
JESSICA CHEAM
HDB gives out less COV data, but figures show a rise
Published on Oct 29, 2011
THE Housing Board (HDB) yesterday stopped issuing yet another component of cash-over-valuation (COV) data in its quarterly releases.
This time, it left out the median COV figures for flat types in HDB estates where fewer than 20 sales were made in the three months to Sept 30.
The COV is the amount a buyer pays over and above the valuation of a Housing Board resale flat.
In the past, the HDB provided the median COV figures for all estates even if there were fewer than 20 transactions, but added the caveat that such figures may not be representative.
However, in the quarterly release yesterday, the HDB said the median COV of certain flat types in towns where there were fewer than 20 resale transactions 'are not shown as they may not be representative'.
This follows a move in July to stop issuing data on overall COV paid for HDB resale flats. National Development Minister Khaw Boon Wan said the figures could be misleading, so he took a 'middle way' - by issuing median COV data by HDB towns and flat types, but with no overall figures.
Despite the lack of overall figures, a closer look at COV figures shows them inching upwards. The lowest median COV for a three-room flat in any HDB town in the second quarter was $25,000 (in Ang Mo Kio and Toa Payoh), while in the third quarter the lowest equivalent was $27,900 (in Marine Parade).
For four-room flats, the lowest recorded median COV in the second quarter was $27,000 in Sembawang. In the third quarter, this had risen to $35,000.
Mr Chris Koh, director of property firm Dennis Wee Group, said that based on its transactions, most resale deals are made with COVs more than $30,000 these days. 'For larger flats such as five-room and executives, the norm is $50,000 to $70,000,' he said.
ERA Realty key executive officer Eugene Lim yesterday called for COV figures not to be published.
'This facilitates sellers and buyers to negotiate based on price rather than COV,' he said. 'Buyers typically are able to make an informed decision by first obtaining an indicative valuation (in the private property market). Why can't the same practice be adopted for HDB flats?'
JESSICA CHEAM