HDB valuation hike may have led to higher resale prices
http://www.straitstimes.com/ST%2BFor...ry_402741.html
July 14, 2009 Tuesday
HDB valuation hike may have led to higher resale prices
THE resale prices of Housing Board flats have risen by 10 to 15 per cent in the past one to two years, despite the recession that began in September last year.
The HDB may have contributed to the spike when it decided to raise the valuation prices of its flats last year, saying it would help buyers as a lower cash-above-valuation payment would result.
The fact is, most buyers still ask for cash-above-valuation payment and the amount does not vary much from that before HDB increased the valuation tag.
When I helped a friend who wanted to buy a flat, the valuation of a four-room HDB flat in Tampines was about $300,000 in 2007 and early last year, with buyers asking for about $30,000 cash. The price was therefore $330,000.
I now hope to buy a resale HDB flat and the valuation of a similar flat is about $350,000 with a demand of about $20,000 cash above valuation.
While the cash request is slightly lower, the valuation price has leapt. The price of a four-room flat in Tampines is about $370,000 now, some $40,000 more than the price early last year - and this is largely due to the higher valuation price.
Instead of helping to stabilise prices, the HDB's spike in valuation has been instrumental in increasing resale prices.
Tan Say Yin (Ms)
HDB flat valuations done by independent professionals
http://www.straitstimes.com/ST%2BFor...ry_404638.html
July 18, 2009 Saturday
HDB flat valuations done by independent professionals
I REFER to Tuesday's letter by Ms Tan Say Yin, 'HDB valuation hike may have led to higher resale prices'. Valuations are carried out by independent professional valuers, not HDB.
These valuers are members of the Singapore Institute of Surveyors and Valuers and are licensed by the Inland Revenue Authority of Singapore.
The valuation is based on actual transacted resale prices for similar flat types in the vicinity. This is a well-established industry practice and applies to both private and public housing valuation.
Resale prices are affected by many factors such as the overall economy, property market sentiment and flat attributes such as location, size and age.
To help flat buyers and sellers to make informed decisions, HDB provides the latest data on the HDB resale market online, including recent actual transacted resale prices and cash-over-valuation (COV) payments.
Ms Tan mentioned that the valuation of a four-room flat in Tampines is about $350,000, with $20,000 COV. According to HDB's public housing data, the median transacted price for a four-room flat in Tampines was $331,000 in the first quarter of this year and the median COV amount was $4,000.
About 38 per cent of all resale transactions in the same quarter were transacted either at or below valuation. We advise Ms Tan to shop around for a flat that meets her budget and preferences and negotiate for the best possible price.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director, Policy and Property
Housing & Development Board