View Full Version : COV for HDB resale flats falls to S$5,000 in Dec 2013
Source: Channelnewsasia.com
http://www.channelnewsasia.com/news/singapore/cov-for-hdb-resale-flats/948024.html
The overall median cash premium or Cash-Over-Valuation (COV) for HDB resale flats fell to S$5,000 in December last year, from S$8,000 in November 2013.
HDB flats
ENLARGECAPTION
SINGAPORE: The overall median cash premium or Cash-Over-Valuation (COV) for HDB resale flats fell to S$5,000 in December last year, from S$8,000 in November 2013.
This is the lowest since June 2009 when COVs were at a low of S$3,000.
It was a 37.5 per cent drop month-on-month, according to the latest flash report released by the Singapore Real Estate Exchange (SRX) on Thursday.
In December, about one in five (20.2 per cent) HDB resale transactions or 141 transactions were also made below valuation, or at a negative-COV.
That is an increase from 13 per cent in November and just 0.6 per cent in January last year.
According to SRX, the overall median valuation also fell in the fourth quarter of 2013.
It fell from S$438,000 in the third quarter, to S$435,000 in the fourth.
This decline in valuation is a first since the fourth quarter of 2009, during the global financial cross.
- CNA/nd
princess_morbucks
09-01-14, 10:55
http://www.todayonline.com/singapore/covs-plummet-s5000-december
SINGAPORE — Overall median cash-over-valuation (COV) premiums for resale HDB flats continued to plummet as property curbs bite, falling to S$5,000 in December from S$8,000 the previous month, according to flash estimates released today (Jan 9) by the Singapore Real Estate Exchange (SRX).
December's median COV is the lowest since June 2009, when it dropped to a low of S$3,000 as the property market was emerging from the aftermath of the global financial crisis.
The median COV in January 2013 was S$35,000.
Data collated from 10 real estate agencies showed the number of transactions done below valuation level increased to 141 cases last month from 113 in November, an increase of about 25 per cent. Woodlands saw the highest number of such sales, followed by Sengkang and Jurong West.
Overall resale volume for the month is estimated to come in at 908 units, down 9.6 per cent from November’s 1,004 units, the SRX said.
http://www.todayonline.com/singapore/covs-plummet-s5000-december
Data collated from 10 real estate agencies showed the number of transactions done below valuation level increased to 141 cases last month from 113 in November, an increase of about 25 per cent. Woodlands saw the highest number of such sales, followed by Sengkang and Jurong West.
Overall resale volume for the month is estimated to come in at 908 units, down 9.6 per cent from November’s 1,004 units, the SRX said.
I guess owners in the west BEWARE thread was more on queue than the threadstarter knew, all be it for the opposite reason.
Wonder how many people's upgrade plans are going to get hit by the COV being practically wiped out.
thomastansb
09-01-14, 13:00
Good news to Singaporeans. Finally, the high prices of HDB is easing. Hope the Government can do more to make HDB more affordable. Another 20 to 30% drop will be ideal.
I guess owners in the west BEWARE thread was more on queue than the threadstarter knew, all be it for the opposite reason.
Wonder how many people's upgrade plans are going to get hit by the COV being practically wiped out.
Good news to Singaporeans. Finally, the high prices of HDB is easing. Hope the Government can do more to make HDB more affordable. Another 20 to 30% drop will be ideal.
Did you spare a thought for those who paid high COV?
2014 is just the early stage of govt cooling measure. A correction of 10 to 20% is expected for hdb and followed by private housing.
HDB prices start to cool at a time when many HDB owners are upgrading. A stable price is better than a price that is moving up and down rapidly. 2016 could become an interesting year.
HDB prices are the support for private housing. If the support is down follow by private, the ability to upgrade is actually more achievable as buyers are able to meet the TDSR which is here to stay..
HDB prices are the support for private housing. If the support is down follow by private, the ability to upgrade is actually more achievable as buyers are able to meet the TDSR which is here to stay..
HDB upgraders locked their EC/PC purchase at a certain price. If COV is down, they will be affected.
EC is practically meant for own stay and buyers should not be too hopeful if price appreciate..
Some uninformed HDB owners from Bishan are still asking S$80 COV... :doh:
Are they trying to strike toto when an unassuming buyer comes along or they are really not following the market news?
Did you spare a thought for those who paid high COV?
didn't the govt warn them before..?
don't blame anyone when things goes sour, that's including private props
Good news to Singaporeans. Finally, the high prices of HDB is easing. Hope the Government can do more to make HDB more affordable. Another 20 to 30% drop will be ideal.
should just crash it and make HDB worthless. thats wat the people wanted anyway right CHEAP! must well just make it worthles bah! :D
HDB prices are the support for private housing. If the support is down follow by private, the ability to upgrade is actually more achievable as buyers are able to meet the TDSR which is here to stay..
so if HDB become worthless then private will be practically free too? Good lets the HDB become worthless!!! huray!
HDB upgraders locked their EC/PC purchase at a certain price. If COV is down, they will be affected.
Good for them! Or bit Good! they\ir fellow singaporean kau pay expensive mah. let it rip!!!
Yah lor, may be private properties will crash by the end of this year due to all those CMs esp ABSD and TDSR? :cheers1:
didn't the govt warn them before..?
don't blame anyone when things goes sour, that's including private props
princess_morbucks
10-01-14, 09:10
http://sbr.com.sg/sites/default/files/imagecache/300x170/news/fig4.JPG
4Q13 index down 0.8%.
According to Barclays, private home prices have posted the first drop in seven quarters – the 4Q13 URA private home price index fell 0.8% q/q, bringing the full-year 2013 to a slight increase of +1.2%, which compares to increases of 2.8%/5.9%/17.6% in full-year 2012/2011/2010.
Private home prices are now 61% above the last trough in 2Q09.
Here's more from Barclays:
Private home prices are still 61% above 2009 levels and GDP, employment and interest rates still appear favourable.
In the previous two cycles, the unwinding of tightening measures only started after the onset of a crisis and a significant fall in property prices.
- See more at: http://sbr.com.sg/residential-property/news/chart-day-heres-proof-public-housing-prices-dropped-most-2005#sthash.7Njx7P1p.dpuf
princess_morbucks
10-01-14, 10:53
http://business.asiaone.com/news/news/sengkang-punggol-resale-flat-sellers-feel-the-pain
SINGAPORE - For some, the housing dream at Sengkang and Punggol has turned sour. More than half of all resale transactions in these estates last month were found to have closed below valuation.
The sellers were the hardest hit among those from Housing Board towns that clocked deals with a negative cash-over-valuation, revealed the Singapore Real Estate Exchange yesterday.
Overall, one in five HDB resale deals was closed below valuation.
Other areas that had more than 30 per cent of all transactions made below valuation included Choa Chu Kang, Sembawang and the outskirts of Woodlands.
Executive director Andy Choa of real-estate firm DWG pointed out that the "abundance of willing sellers" in Sengkang and Punggol could be related to the demographics of homeowners in both areas.
"They are mostly young couples who could be looking to move elsewhere to suit their families' evolving needs," he said.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said that the ramped-up supply of Build-To-Order flats in both areas could pressure homeowners into selling their flats at a lower price than expected.
"It is likely that sellers are choosing to sell their flats now, rather than run the risk of selling them at even lower prices when new flats come up in the future," he said.
However, both Mr Choa and Mr Mak said that, because home prices in Sengkang and Punggol remain high, sellers still stand to gain even if they let go of their flats at valuation, or lower.
- See more at: http://business.asiaone.com/news/news/sengkang-punggol-resale-flat-sellers-feel-the-pain#sthash.jl0fq3EP.dpuf
-------------------------------------------------------------------
They didn't mention Jurong West in this article.
princess_morbucks
10-01-14, 11:39
https://pbs.twimg.com/media/Bdl2pbzCYAAmALE.jpg
Taken from Straits Times twitter page.
Clementi has dropped quite a lot. What about jurong?
Allthepies
11-01-14, 16:00
jurong east EA dec $815K... Not sure COV up or down
Allthepies
11-01-14, 18:02
Bishan EM, dec 1.05mil :scared-1::scared-1:
Need more cooling measures for HDB
they just beat Duxton to it!
26 year old flat, although near central and mrt, but $1.05mio is mind boggling still.
Allthepies
12-01-14, 07:57
they just beat Duxton to it!
26 year old flat, although near central and mrt, but $1.05mio is mind boggling still.
enjoy first, typical HDByers mindset : )
1 million HDB, many people say it is too expensive.
2 million condo, people will say it is norm today.
what should be the reasonable ratio between the prices of condo and HDB?
enjoy first, typical HDByers mindset : )
What if HDB tomorrow say Executive HDB will be privatize.
They are building smaller and smaller HDB, no reason why they should not Privatize all the bigger unit.
jurong east EA dec $815K... Not sure COV up or down
If COV $0, and yet HDB sold exactly at valuation which is already very high due past 4 years of boom, will the prices of HDB drop? Not likely right?
For HDB prices to drop, there must be at least 2-3 qtrs of below valuation transactions.
What if HDB tomorrow say Executive HDB will be privatize.
They are building smaller and smaller HDB, no reason why they should not Privatize all the bigger unit.
Not that it is not technically impossible just like HUDC, but don't not see any reason why govt will want to do that? The more land area under state control, the more feasible will the govt be able to effect their plans and policy.
Not that it is not technically impossible just like HUDC, but don't not see any reason why govt will want to do that? The more land area under state control, the more feasible will the govt be able to effect their plans and policy.
Property Tax collect more, maintenance belong to the property owner. If they en bloc, more Tax will be collected.
What if HDB tomorrow say Executive HDB will be privatize.
They are building smaller and smaller HDB, no reason why they should not Privatize all the bigger unit.
Cannot everything good and near mrt be privatised lah. Otherwise only pte condo can live near mrt? That would cause an uproar. Just do a SERS and it would be good enough for them to recycle capital.
If COV $0, and yet HDB sold exactly at valuation which is already very high due past 4 years of boom, will the prices of HDB drop? Not likely right?
For HDB prices to drop, there must be at least 2-3 qtrs of below valuation transactions.
if the HDB Q4-2013 flash estimate is accurate, the index already dropped 2 quarters liao ah... look here...
Source: http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatResaleIndex?OpenDocument
http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/RPIChart4Q13FlashEstSmall/$file/RPIChart4Q13FlashEstSmall.bmp;wa98ceaf9a5441b154
http://www.straitstimes.com/archive/friday/premium/top-the-news/story/median-cov-falls-5000-20140110
Median COV falls to $5,000
Cash premiums for resale flats drop to four-year low, from $8,000 in Nov
Published on Jan 10, 2014
By Janice Heng
CASH premiums for resale Housing Board flats hit a four-year low last month.
The median cash-over-valuation (COV) was $5,000 in December, down from $8,000 in November, according to Singapore Real Estate Exchange (SRX) flash estimates yesterday.
Resale prices and volumes also slid, capping a quarter in which median valuation dipped for the first time since 2009.
December's COV was the lowest since June 2009. The drop came on the back of transactions in which flats went for less than their valuation. These accounted for about one in five of all deals - the highest proportion since May 2009.
The towns with the most of such deals were Woodlands, Sengkang and Jurong West. In Sengkang and Punggol, more than half of transactions closed below valuation.
Experts predict the fall will continue. PropNex Realty chief executive officer Mohamed Ismail Gafoor said: "We are expecting COVs to continue to moderate, especially over the festive period."
But flats in good locations should still fetch "reasonable premiums", he added.
R'ST Research director Ong Kah Seng thinks the median COV could hit zero by the end of the first quarter, with offering a flat at its valuation price becoming a "given thing".
Resale prices themselves continued to slide. The resale index fell 0.5 per cent in December to 145.9 points, the lowest level since July 2012.
Fewer flats changed hands last month, with an estimated 908 HDB resale deals, down from 1,004 in November.
In the rental market, volume stayed flat with about 1,364 flats rented. But prices slipped for the second month in a row, down 2.1 per cent to $2,300.
Overall, December completed a lacklustre quarter.
According to SRX data, HDB median valuation prices in the last quarter of 2013 fell by $3,000 to $435,000 - the first quarterly drop since late 2009.
ERA Realty key executive officer Eugene Lim said the continued slowdown was expected.
He pointed to tighter home loan rules, more Build-To-Order flats, restrictions on permanent resident buyers, and new flats being made available to singles.
Both ERA and PropNex predict resale prices will fall by 5 per cent to 8 per cent for the whole year.
But as prices and COVs fall, activity may pick up, said experts.
For instance, zero COVs "will start to encourage buyers to get a resale flat, as it seems more affordable without a 'hard cash' component," said Mr Ong.
Market recovery or stability may come in the middle of the year, when economic activity and property sentiments tend to be higher.
Mr Lim expects about 8 per cent to 10 per cent more transactions this year, compared to 2013.
[email protected]
Govt has responded by making its HDB flat affordable and the result is slowly showing. Gone are the days of 100k+ profit margin.
jurong east EA dec $815K... Not sure COV up or downCOV of $250k is really strike lottery...
phantom_opera
16-01-14, 05:14
if the HDB Q4-2013 flash estimate is accurate, the index already dropped 2 quarters liao ah... look here...
Source: http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatResaleIndex?OpenDocument
http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/RPIChart4Q13FlashEstSmall/$file/RPIChart4Q13FlashEstSmall.bmp;wa98ceaf9a5441b154
3x from 94 low in almost 20y, annual compound at 5.9%pa (excluding rental gain)
Maybe...in general things are going a bit fast on the downtrend for HDB.
If it reach to a point where there are many willing sellers, but if there are few takers and many on the sidelines.
The govt would consider that as unhealthy market.
This would cause the govt to tweak the rules and change the game.
Price of public housing is still 60% over valued. At least down 20% then considered affordable.
Price of public housing is still 60% over valued. At least down 20% then considered affordable.
You are right about overvalued. Individual people like you and me think about
price as priority.
Unfortunately, on a govt point, healthy market is a step more important than price.
Because they are looking after people as a whole.
From my observation, the govt is very quick to turn the tide, when things are
favouring only on one side.
Govt knew how much profit hdb owners are sitting on n theres a need to balance for those seeking a roof.
Govt knew how much profit hdb owners are sitting on n theres a need to balance for those seeking a roof.
Well, you have your reason.
But if i tell you, in this current market condition,
There is zero chance the govt will introduce more cooling measures.
Do you truthfully agree?
Well, you have your reason.
But if i tell you, in this current market condition,
There is zero chance the govt will introduce more cooling measures.
Do you truthfully agree?
Yes. As long as housing prices do not increase further. Accumulative cooling measures are already taking effects.
While COV was dropping in Dec 2013, there was a record high HDB resale flat price transacted in the same month. Check this resale HDB price (http://www.propertyrichesprogram.com/blog/resale-hdb-flat-price-record-high-resale-hdb-price) out. :scared-5:
While COV was dropping in Dec 2013, there was a record high HDB resale flat price transacted in the same month. Check this resale HDB price (http://www.propertyrichesprogram.com/blog/resale-hdb-flat-price-record-high-resale-hdb-price) out. :scared-5:
The will strengthen the fact that cooling measures will not be removed so soon.
Read somewhere that TDSR may be not for short term and it impacts all property investors and upgraders.
Did you spare a thought for those who paid high COV?
Thats what everyone want may. HDB is for stay not make $ or value. best become ZERO ah! become utility. like water and electricity. use liao gone type.
Thats what everyone want may. HDB is for stay not make $ or value. best become ZERO ah! become utility. like water and electricity. use liao gone type.
after 99 years, it will be zero value.
Anyway owners of HDB is only leasing the paper from HDB for 99 years. It does not belong to them.
after 99 years, it will be zero value.
Same case for private LH 99 years.
But a continual dropping trend of COV would imply that it is now HDB buyer market and they have more choices now than past 2-3 years.
Same case for private LH 99 years.
But a continual dropping trend of COV would imply that it is now HDB buyer market and they have more choices now than past 2-3 years.
For private 99 LH, there is still chance of topping up the lease, if goes enbloc. HDB can only enbloc by government.
Private En Bloc is even more risky now. Dont get burnt....i got relatives who spec private en bloc and got burnt. almost bankrupt.
princess_morbucks
24-01-14, 20:18
Private En Bloc is even more risky now. Dont get burnt....i got relatives who spec private en bloc and got burnt. almost bankrupt.
What happened?
Care to elaborate?
That was sometime back where my relatives who all chipped in to buy orchard private condo. pretty speculative and they ended could'nt afford the monthly instalment with rising interest when the en bloc rumor was called off. It does not mean that condo area like orchard for en bloc will be a great deal.
proud owner
25-01-14, 00:07
That was sometime back where my relatives who all chipped in to buy orchard private condo. pretty speculative and they ended could'nt afford the monthly instalment with rising interest when the en bloc rumor was called off. It does not mean that condo area like orchard for en bloc will be a great deal.
its all about timing ... and doing your research ....
I enjoyed 2 enbloc ... between 2005 and 2006 ... 1 of which was D10 too..
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.