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Thread: Khaw: COV data could be misleading

  1. #1
    mr funny is offline Any complaints please PM me
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    Default Khaw: COV data could be misleading

    http://www.straitstimes.com/PrimeNew...ry_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]

  2. #2
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    Quote Originally Posted by mr funny
    http://www.straitstimes.com/PrimeNew...ry_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]
    He should say HDB valuation in incorrect all the time, if it is correct then the is no need for COV.

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    Quote Originally Posted by Arcachon
    He should say HDB valuation in incorrect all the time, if it is correct then the is no need for COV.
    COV The whole concept is an oxymoron....

    cash over value

    if it's "value" there shouldn't be "cash over" it

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    Quote Originally Posted by sh
    COV The whole concept is an oxymoron....

    cash over value

    if it's "value" there shouldn't be "cash over" it
    It's clearly an indication of how Singaporeans think. In order to get what I want, I will pay extra to ensure I get it (a type of kiasu). This can only take place in a rich country. If majority of people are poor, no need to pay cash over value le...

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    Feb 10, 2009

    Live in nursing homes in JB?

    SINGAPOREANS could consider living in nursing homes in neighbouring Johor Baru, Health Minister Khaw Boon Wan suggested yesterday.

    It would be cheaper, yet be near enough to Singapore for family members to visit and for residents to return for medical care if necessary, he said.

    He told Parliament yesterday that he recently visited a site in Johor Baru where a Singaporean investor was planning to build a 200-bed nursing home.

    He asked the investor about the costs involved, and was stunned at how low they were.

    He said: 'It is mind-boggling. The cost of land and construction cost is so low that my cost of putting up just a polyclinic (in Singapore) is probably more than his cost of putting up a 200-bed nursing home (in Johor Baru).

    'The monthly cost of keeping a resident in a private nursing home in Singapore, you can stretch it easily to pay at least 2-1/2 months of nursing home care in Johor Baru.'

    If any medical problems cropped up, the elderly could be taken back to Singapore by ambulance, he said.

    For most Singaporeans, visiting a relative in a Johor Baru nursing home would not pose significant difficulties, he said.

    The investor, who is a nursing home chief executive, told him that many people visited their relatives weekly, even in nursing homes in Singapore.

    Mr Khaw added: 'Of course many visit daily, but quite a significant number visit only during the weekends, so what is the difference in putting them in Johor Baru?'

    LEE HUI CHIEH

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    Quote Originally Posted by wenqing
    Feb 10, 2009

    Live in nursing homes in JB?

    SINGAPOREANS could consider living in nursing homes in neighbouring Johor Baru, Health Minister Khaw Boon Wan suggested yesterday.

    It would be cheaper, yet be near enough to Singapore for family members to visit and for residents to return for medical care if necessary, he said.

    He told Parliament yesterday that he recently visited a site in Johor Baru where a Singaporean investor was planning to build a 200-bed nursing home.

    He asked the investor about the costs involved, and was stunned at how low they were.

    He said: 'It is mind-boggling. The cost of land and construction cost is so low that my cost of putting up just a polyclinic (in Singapore) is probably more than his cost of putting up a 200-bed nursing home (in Johor Baru).

    'The monthly cost of keeping a resident in a private nursing home in Singapore, you can stretch it easily to pay at least 2-1/2 months of nursing home care in Johor Baru.'

    If any medical problems cropped up, the elderly could be taken back to Singapore by ambulance, he said.

    For most Singaporeans, visiting a relative in a Johor Baru nursing home would not pose significant difficulties, he said.

    The investor, who is a nursing home chief executive, told him that many people visited their relatives weekly, even in nursing homes in Singapore.

    Mr Khaw added: 'Of course many visit daily, but quite a significant number visit only during the weekends, so what is the difference in putting them in Johor Baru?'

    LEE HUI CHIEH
    MND can consider Johor Baru HDB next. MND can get HDB to buy the land in Johor Baru and built HDB and sell to Singaporean for 99 year lease. Then LTA can provide "free" Bus service to the nearest MRT station in Singapore.

  7. #7
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    Quote Originally Posted by wenqing
    Feb 10, 2009

    Live in nursing homes in JB?

    SINGAPOREANS could consider living in nursing homes in neighbouring Johor Baru, Health Minister Khaw Boon Wan suggested yesterday.

    It would be cheaper, yet be near enough to Singapore for family members to visit and for residents to return for medical care if necessary, he said.

    He told Parliament yesterday that he recently visited a site in Johor Baru where a Singaporean investor was planning to build a 200-bed nursing home.

    He asked the investor about the costs involved, and was stunned at how low they were.

    He said: 'It is mind-boggling. The cost of land and construction cost is so low that my cost of putting up just a polyclinic (in Singapore) is probably more than his cost of putting up a 200-bed nursing home (in Johor Baru).

    'The monthly cost of keeping a resident in a private nursing home in Singapore, you can stretch it easily to pay at least 2-1/2 months of nursing home care in Johor Baru.'

    If any medical problems cropped up, the elderly could be taken back to Singapore by ambulance, he said.

    For most Singaporeans, visiting a relative in a Johor Baru nursing home would not pose significant difficulties, he said.

    The investor, who is a nursing home chief executive, told him that many people visited their relatives weekly, even in nursing homes in Singapore.

    Mr Khaw added: 'Of course many visit daily, but quite a significant number visit only during the weekends, so what is the difference in putting them in Johor Baru?'

    LEE HUI CHIEH
    You will know that the housing policies are heading: COV will still be around and HDB prices will continue to go up.

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