View Full Version : HDB COVs fall to $8,000 in Nov
princess_morbucks
05-12-13, 10:44
http://www.straitstimes.com/breaking-news/singapore/story/hdb-covs-fall-8000-nov-lowest-july-2009-more-flats-sold-below-valuatio
Cash premiums for Housing Board flats fell for the third straight time last month to $8,000, according to Singapore Real Estate Exchange flash estimates on Thursday.
This was the first time since 2009 that overall cash-over-valuation (COV) fell below $10,000.
More HDB resale transactions had negative COVs, with 13.1 per cent of HDB resale deals closing below valuation in November, up from 8.5 per cent in October. Sengkang, Choa Chu Kang and Jurong West saw the most such transactions.
Resale prices also slipped a further 0.6 per cent, reaching the lowest level since September 2012. An estimated 1,051 HDB flats were sold in the resale market last month, down 11.5 per cent from October's 1,187 transactions, and down 34 per cent compared to the same time last year
princess_morbucks
05-12-13, 10:51
More from todayonline
http://www.todayonline.com/singapore/median-covs-continue-falling-hit-s8000-nov
SINGAPORE — The HDB resale market is continuing to soften with Cash Over Valuations (COVs) dropping below S$10,000 for the first time since July 2009 and the proportion of sales closing below valuation accelerating to 13.1 per cent.
The overall median COV for November was S$8,000, a 30.1 per cent fall from the previous month, according to flash data released today (Dec 5) by the Singapore Real Estate Exchange (SRX).
Median COVs have been falling steadily this year, and are now 73.3 per cent below the $30,000 level seen in April.
And in a further sign that the HDB resale market is softening, the number of deals closing below valuation went up in November to 97, according to transaction records from SRX agencies.
While that is a slight increase from the 82 below-valuation transactions in October, it is significantly higher than the single digit number of such deals each month between January and June.
Sengkang, Choa Chu Kang, and Jurong West saw the highest number of below-valuation COV deals in November.
There was also a drop in the total number of HDB flats sold in the resale market: according to the flash estimates, 1,051 HDB flats were sold last month, an 11.5 per cent drop from October’s 1,187 transactions.
In the private resale market, prices of non-landed residential units fell by 1.5 per cent in November, marking a third consecutive monthly drop in the overall resale price index. This is also the lowest price level observed in this year, SRX said, down 4.1 per cent from the February’s peak.
Tide is turning, those affected will be EC upgraders who must sell their HDBs 6 months from collecting keys.
Those HDB dwellers thinking of upgrading may think twice.
Going forward EC demand will be affected n next come will be OCRs.
The rest ...... Let yr imagination runs ......
princess_morbucks
05-12-13, 11:35
Tide is turning, those affected will be EC upgraders who must sell their HDBs 6 months from collecting keys.
Those HDB dwellers thinking of upgrading may think twice.
Going forward EC demand will be affected n next come will be OCRs.
The rest ...... Let yr imagination runs ......
So it is the sandwiched class that feels the pinch again.
thomastansb
05-12-13, 11:37
Don't worry. Majority of the Singaporeans love this. They feel very happy that HDB prices is dropping.
So it is the sandwiched class that feels the pinch again.
princess_morbucks
05-12-13, 11:42
Don't worry. Majority of the Singaporeans love this. They feel very happy that HDB prices is dropping.
I don't think so leh.
The majority of SG already own and stay in HDB, so they would prefer the feeling of the flat being expensive, in case if they need to sell.
I don't think so leh.
you did not catch his tone ;)
thomastansb
05-12-13, 12:18
No la, you got to be kidding me. I remember how people mock at HDB being 1 million dollars. I agree. HDB should go back to basic. 300k for a 4 bedroom is more reasonable. HDB is not meant for profit anyway. It is for own stay.
I don't think so leh.
The majority of SG already own and stay in HDB, so they would prefer the feeling of the flat being expensive, in case if they need to sell.
thomastansb
05-12-13, 12:20
You know me best ;)
you did not catch his tone ;)
princess_morbucks
05-12-13, 12:49
you did not catch his tone ;)
Lol...you guys have radio frequency is it?
Can hear the tone from afar.
This should be good news for property investors.
As least we know now that the cooling measures are working and that $20k +/- difference on COV is not going to make or break a property market either.
I heard some forumers saying HDB expensive. I say let HDB drop to basic and let condo price up. Remove some cooling measures for condo but implement more cooling measures for HDB.
I don't think so leh.
The majority of SG already own and stay in HDB, so they would prefer the feeling of the flat being expensive, in case if they need to sell.
The true ground sentiment for the majority of SG who are HDB flat owners is that they hope their flat COV remain high while the rest of the country's COV fall.
thomastansb
05-12-13, 15:05
And their flat should sell > 1M then buy again at 5k.
The true ground sentiment for the majority of SG who are HDB flat owners is that they hope their flat COV remain high while the rest of the country's COV fall.
thomastansb
05-12-13, 15:06
I agree. After all, HDB is for own stay as what 99% of Singaporeans are saying. Asset appreciation is no use because you can't sell that HDB also. Sell already, stay where? HDB should go back to basic. And ban all PR to buy HDB also. HDB is for SINGAPOREANS !!!!
I heard some forumers saying HDB expensive. I say let HDB drop to basic and let condo price up. Remove some cooling measures for condo but implement more cooling measures for HDB.
The true ground sentiment for the majority of SG who are HDB flat owners is that they hope their flat COV remain high while the rest of the country's COV fall.
Majority Singaporean is only having one property. So cheap HDB is better for them. When you only have one it mean sell cheap and buy also cheap. If They have extra money They can always upgrade from smaller HDB to bigger HDB. Which is good thing for majority
mnd is tell Singaporeans if want to buy hdb, buy it from the government and use whatever grant that is available to off set the cost.
Basically the government is trying to say that property prices including HDB will be high, and government is helping you by making BTO affordable and giving out government grant.
I did not analyse on those transactions but I believe, these below 10k$ COV thingy majority are relatively new flats whereby first timers could have bought it from govt. they don't lose and when they see chance to upgrade, they just let go fearing that more supply of BTO in future will dampen the resale price further.
but this is only temporary in my opinion. in most mature estate, I believe this is not happening. and as I said, it is a good chance for those who are eyeing to buy resale flats. good deals don't last for long...
most of these ppl who complain about high hdb prices are non-sense. cannot afford 5 rm then buy 4 rm, cannot then go to 3 rm and so on...once they bought it, immediately they would want to sell it at high price. if you tell them they buy their 4rm flat at 200k 10yrs ago and now they can only sell at 250k, you think they happy? If the price drop from 450k to 250k, you think they happy?? ;)
so lower hdb price really make them happy? it depends on which side of the coin u are in...:2cents:
I did not analyse on those transactions but I believe, these below 10k$ COV thingy majority are relatively new flats whereby first timers could have bought it from govt. they don't lose and when they see chance to upgrade, they just let go fearing that more supply of BTO in future will dampen the resale price further.
but this is only temporary in my opinion. in most mature estate, I believe this is not happening. and as I said, it is a good chance for those who are eyeing to buy resale flats. good deals don't last for long...
most of these ppl who complain about high hdb prices are non-sense. cannot afford 5 rm then buy 4 rm, cannot then go to 3 rm and so on...once they bought it, immediately they would want to sell it at high price. if you tell them they buy their 4rm flat at 200k 10yrs ago and now they can only sell at 250k, you think they happy? If the price drop from 450k to 250k, you think they happy?? ;)
so lower hdb price really make them happy? it depends on which side of the coin u are in...:2cents:
Yes agree. Complainers make the loudest noise even if it is just a few.
I did not analyse on those transactions but I believe, these below 10k$ COV thingy majority are relatively new flats whereby first timers could have bought it from govt. they don't lose and when they see chance to upgrade, they just let go fearing that more supply of BTO in future will dampen the resale price further.
but this is only temporary in my opinion. in most mature estate, I believe this is not happening. and as I said, it is a good chance for those who are eyeing to buy resale flats. good deals don't last for long...
most of these ppl who complain about high hdb prices are non-sense. cannot afford 5 rm then buy 4 rm, cannot then go to 3 rm and so on...once they bought it, immediately they would want to sell it at high price. if you tell them they buy their 4rm flat at 200k 10yrs ago and now they can only sell at 250k, you think they happy? If the price drop from 450k to 250k, you think they happy?? ;)
so lower hdb price really make them happy? it depends on which side of the coin u are in...:2cents:
prices in bedok still high;)
So it is the sandwiched class that feels the pinch again.
squeeze? why? they kp want HDB to be worth less right? dream come true mah.
I agree. After all, HDB is for own stay as what 99% of Singaporeans are saying. Asset appreciation is no use because you can't sell that HDB also. Sell already, stay where? HDB should go back to basic. And ban all PR to buy HDB also. HDB is for SINGAPOREANS !!!!
Good Good. make HDB worthless. Coz many just jealous with the small people mentality. they can only make others cannot. Shit in the backyard and destroy hbd price so other people don't want it.. good..
opps.. they end up holding worthless bricks thats shit? Good that's so smart…
Majority Singaporean is only having one property. So cheap HDB is better for them. When you only have one it mean sell cheap and buy also cheap. If They have extra money They can always upgrade from smaller HDB to bigger HDB. Which is good thing for majority
So create a getto class u say? while the PC growths in value with Singapore growth and HDB stay worthless. And the middle class start sinking down the chain with worthless assets. While the folks with PC see positive assets growth as the nation advance..
How smart is that.? wow! Suddenly HDB become such value for people to stay in?
Upgrade? LOL.. u mean buy a 3 bed room then upgrade to 5 hoping 5 is cheap? hah hah… if ur 3 bed room hav no value what make u think u can upgrade anyway? logic is pretty broken. Oh forgot u are thinking buy 3 bed room then can sell 3 bed room for more or same price then go buy a 5 bed room cheaply? LOL!!!!!
I wonder why people go Q for iPAD and no 1 go Q for a china made Andriod? coz the cheap android is no value ah? why ah?
Cheap don't mean people want it ! thats why. and I tell u Singaporean are not for cheap stuff.
Why people KPKB today is becoz they want to Buy HDB CHEAP CHEAP! Coz they know it has value.
Make it worthless tell u no Singaporean will want it. Its no different from renting if thats the case.
No la, you got to be kidding me. I remember how people mock at HDB being 1 million dollars. I agree. HDB should go back to basic. 300k for a 4 bedroom is more reasonable. HDB is not meant for profit anyway. It is for own stay.
WAt 300K!! thats ex.. should be worthless. Should be traded 1 for 1. or have a $2000 scrap value. type…
should be return to government at cost so can sell to the next guy at cost!!!!
So create a getto class u say? while the PC growths in value with Singapore growth and HDB stay worthless. And the middle class start sinking down the chain with worthless assets. While the folks with PC see positive assets growth as the nation advance..
How smart is that.? wow! Suddenly HDB become such value for people to stay in?
Upgrade? LOL.. u mean buy a 3 bed room then upgrade to 5 hoping 5 is cheap? hah hah… if ur 3 bed room hav no value what make u think u can upgrade anyway? logic is pretty broken. Oh forgot u are thinking buy 3 bed room then can sell 3 bed room for more or same price then go buy a 5 bed room cheaply? LOL!!!!!
I wonder why people go Q for iPAD and no 1 go Q for a china made Andriod? coz the cheap android is no value ah? why ah?
Cheap don't mean people want it ! thats why. and I tell u Singaporean are not for cheap stuff.
Why people KPKB today is becoz they want to Buy HDB CHEAP CHEAP! Coz they know it has value.
Make it worthless tell u no Singaporean will want it. Its no different from renting if thats the case.
I never say HDB should worthless. I say HDB cheap is good for majority. There is different between "majority" and "everyone".
There are 3 basic need for Human. Which are Food, Place to stay and cloth. In Singapore HDB is consider part of basic need. It always good for "majority" if basic need is not so expensive.
EC and PC is not consider basic need. So if the price is expensive for EC and PC it will not hurt the "majority"
I never say HDB should worthless. I say HDB cheap is good for majority. There is different between "majority" and "everyone".
There are 3 basic need for Human. Which are Food, Place to stay and cloth. In Singapore HDB is consider part of basic need. It always good for "majority" if basic need is not so expensive.
EC and PC is not consider basic need. So if the price is expensive for EC and PC it will not hurt the "majority"
HDB is more than just a roof over the head. Its also a form of wealth preservation which the government promotes, without housing asset appreciation, I think majority of Singaporeans will not be able to afford retirement.
So for HDB, it should be afford to buy (direct from government with grant) and its value must also appreciate over time.
HDB is more than just a roof over the head. Its also a form of wealth preservation which the government promotes, without housing asset appreciation, I think majority of Singaporeans will not be able to afford retirement.
So for HDB, it should be afford to buy (direct from government with grant) and its value must also appreciate over time.
If all Singaporean buy direct from government then to whom they want to sell after HDB appreciate over time?
If all Singaporean buy direct from government then to whom they want to sell after HDB appreciate over time?
PRs, en bloc millionaire, downgraders, upgraders
PRs, en bloc millionaire, downgraders, upgraders
1. PR -> Need to welcomed PR
2.en block -> after en block , need to buy from resale or from government ??
3. downgrader, upgrader -> need to buy from resale or from government ??
would you consider renting if at the end of say 10 or 20 yrs, your hdb is still cheap?? meaning when u sell, you either sell at same price or only slight gain? If you upgrade, you will lose money...
for majority if they want it cheap and let it stay cheap, then forget about ownership, asset, and all those craps....renting might be a better option!
shelter over your head....no need to headache. need bigger place, just rent a bigger unit from hdb, ask hdb to stop selling and only rent. basic needs covered isn't it?
not so simple la....as we progress, we demand more, and we expect more. that's why more and more ppl cannot achieve what they want they will cry father cry mother. if we stay contented, anything also fine la, just rent....case close. but many greedy ones want to buy cheap and sell high, that's the problem today.:2cents:
I never say HDB should worthless. I say HDB cheap is good for majority. There is different between "majority" and "everyone".
There are 3 basic need for Human. Which are Food, Place to stay and cloth. In Singapore HDB is consider part of basic need. It always good for "majority" if basic need is not so expensive.
EC and PC is not consider basic need. So if the price is expensive for EC and PC it will not hurt the "majority"
I never say HDB should worthless. I say HDB cheap is good for majority. There is different between "majority" and "everyone".
There are 3 basic need for Human. Which are Food, Place to stay and cloth. In Singapore HDB is consider part of basic need. It always good for "majority" if basic need is not so expensive.
EC and PC is not consider basic need. So if the price is expensive for EC and PC it will not hurt the "majority"
So bto is cheap or expensive ?
would you consider renting if at the end of say 10 or 20 yrs, your hdb is still cheap?? meaning when u sell, you either sell at same price or only slight gain? If you upgrade, you will lose money...
for majority if they want it cheap and let it stay cheap, then forget about ownership, asset, and all those craps....renting might be a better option!
shelter over your head....no need to headache. need bigger place, just rent a bigger unit from hdb, ask hdb to stop selling and only rent. basic needs covered isn't it?
not so simple la....as we progress, we demand more, and we expect more. that's why more and more ppl cannot achieve what they want they will cry father cry mother. if we stay contented, anything also fine la, just rent....case close. but many greedy ones want to buy cheap and sell high, that's the problem today.:2cents:
We'll said.
1. PR -> Need to welcomed PR
2.en block -> after en block , need to buy from resale or from government ??
3. downgrader, upgrader -> need to buy from resale or from government ??
Wats wrong with PR buying? It's help with injecting liquidity to the hdb pool. Enblocker with $$$ resale no issue. So it's fair they buy resale help the less we'll to do Singaporean upgrade. Also inject liquidity into local hdb market. Down grader. Also made $$ need to liquidate to cash out. Can go but resale or old pple can get 30 yr retirement studio from government.
So in all it's help benifits the local 1st owner. And spread the wealth amount the Singaporean. So a vibrant hdb is good wat,
So bto is cheap or expensive ?
I consider relatively cheap
Wats wrong with PR buying? It's help with injecting liquidity to the hdb pool. Enblocker with $$$ resale no issue. So it's fair they buy resale help the less we'll to do Singaporean upgrade. Also inject liquidity into local hdb market. Down grader. Also made $$ need to liquidate to cash out. Can go but resale or old pple can get 30 yr retirement studio from government.
So in all it's help benifits the local 1st owner. And spread the wealth amount the Singaporean. So a vibrant hdb is good wat,
I am not again PR.
My point is some of the HDB that being send to resale market will be bought by Singaporean also. Not all will be bought by PR
I am not again PR.
My point is some of the HDB that being send to resale market will be bought by Singaporean also. Not all will be bought by PR
Correct. Those who buy resale would have have a 1st option. Buy from government. If buy from resale majority are upgrades or down graders. All maid $$ some where from the 1st hdb.
So it's a fair trade. How can the hdb upgrader hope to sell his unit high buy buy from another resale cheap cheap?
A only I win every else loose mentality never work.leh.
http://www.straitstimes.com/archive/friday/premium/top-the-news/story/median-cov-flats-drops-8000-20131206
Median COV for flats drops to $8,000
Published on Dec 06, 2013
By Janice Heng
CASH premiums for Housing Board flats have fallen further and faster than expected as housing curbs continue to bite.
The median cash-over-valuation (COV) dropped to $8,000 last month from $11,444 in October, ahead of predictions that it would hit $10,000 by the year end, according to Singapore Real Estate Exchange (SRX) flash estimates yesterday.
This might be due to more deals in less popular estates, rather than unexpectedly cool demand overall, said analysts.
"A lot of transactions were in places like Sengkang and Jurong West, where COVs are lower," said ERA Realty key executive officer Eugene Lim.
The fall was part of a weak housing market picture. Both public and private resale prices fell to the lowest levels this year. Transaction volumes dipped, reversing a slight rise in September.
Resale prices of non-landed private homes fell 1.5 per cent from October.
There were 387 non-landed homes resold last month, down from both October and the same time last year.
In public housing, the fall in median COV marked the first time since July 2009 that cash premiums fell below $10,000.
Analysts say it could slip to $5,000 in the next few months, on the back of more negative COV deals.
Last month, 13.1 per cent of resale deals closed below valuation, up from the SRX's estimate of 8.5 per cent in October.
"We are expecting COV to continue to moderate, especially during the festive period," said Mr Lim. But he does not expect it to hit zero, as flats in mature estates are still fetching reasonable premiums.
R'ST Research director Ong Kah Seng expects COVs to continue to dip until around the second quarter or middle of next year.
With more suburban condominiums being completed next year, "there is probably more competition by HDB upgraders to sell their flats from now (onwards)", he said.
Amid a buyer's market, HDB resale prices fell 0.6 per cent to the lowest level since September last year, and fewer flats changed hands. The estimated 1,051 transactions last month was down from October and 34 per cent less than the same time last year.
Though resale numbers are usually down in the festive season, analysts said last month's fall was due more to cooler buyer sentiment after loan curbs.
Completing the picture of weak demand was the rental market. Private non-landed rental prices remained flat, after three months of decline.
For HDB flats, median rents slipped 2.1 per cent to $2,350, the first drop since they reached $2,400 in June last year.
[email protected]
http://www.businesstimes.com.sg/archive/friday/specials/property/median-cov-resale-flats-lowest-4-years-20131206
Published December 06, 2013
Median COV for resale flats at lowest in 4 years
Nov figure of $8,000 lowest since July '09; 97 units sold below valuation: SRX
By ong chor hao
[email protected]
[SINGAPORE] The market for Housing and Development Board (HDB) resale flats continued to weaken last month, with median cash-over-valuations (COVs) falling to their lowest level in more than four years.
Median COVs fell 30.1 per cent to $8,000 in November, according to flash estimates from the Singapore Real Estate Exchange (SRX), from $11,444 the month before.
This is the first time that the cash premium fell below $10,000 since July 2009. COVs have consistently declined through 2013 from a peak of $35,000 in January.
"COV continued to fall and we are seeing more flats exchanging hands for zero COV or below valuation," said Eugene Lim, key executive officer at ERA Realty.
Overall, on the month, SRX expects an estimated 1,051 resale flats to have been sold in November, down from the 1,187 units the month before.
SRX data showed that 97 resale flats sold last month were transacted below their valuation price, higher than the 82 units in October. Sengkang, Choa Chu Kang, and Jurong West had the most resale HDB flats sold below valuation in November.
The overall HDB resale price index in November dipped 0.6 per cent from October to 146.9 - the lowest level since last September.
Mr Lim attributed the weak performance overall to a tighter mortgage servicing ratio, as well as other policies such as allowing singles to buy Build-to-Order (BTO) flats, a three-year wait before new permanent residents can buy a resale flat and an increasing supply of new flats.
In the private residential sector, resale activity was lacklustre as well.
Resale prices for non-landed private residential units are estimated to have fallen 1.5 per cent from the previous month to 171.5 in November - which would make it the third straight month of decline.
"Prices have continued to soften and will continue to soften with all the property cooling measures snowballing and upcoming supply," said Mr Lim.
All three regions saw price drops, led a by 2 per cent decline in the Core Central Region, followed by a 0.9 per cent dip for Outside Central Region and a 0.7 per cent loss in Rest of Central Region.
An estimated 387 non-landed homes were moved last month, 22.9 per cent lower than the 502 units in October.
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