Resale flat in Punggol sells for $60,000 below valuation

**princess_morbucks** · 10-02-14, 08:40

http://www.tnp.sg/content/resale-fla...elow-valuation

After viewing more than 100 flats in Punggol (above) over the past year, she found the five-room flat for a steal -- at $495,000, below valuation by a whopping $60,000.
The flat's new owner, who wanted to be known as Ms A. Lee, is in her 50s and lives with her maid. The general manager of an SME had moved from a four-room flat just a few blocks away.
She declined to reveal the exact amount but said that her previous flat was sold for about $460,000 and $17,000 below valuation.
While property agents said Ms Lee's case was unusual, the cash-over-valuation (COV) has been on the decline in recent months.
Last month, median COV fell to $3,000 — its lowest since the 2009 financial crisis. Almost 30 per cent of HDB resale deals closed below valuation.

**RCT** · 10-02-14, 09:09

Nothing to be surprised. The valuation report is bullshit.. $555k for Punggol flat? I am not sure what is on the evaluator mind? Totally crazy. If I am willing to pay that type of money, I will rather get a 4-room in area like Bishan and TPY.

**phantom_opera** · 10-02-14, 09:16

Jan BTO Punggol Bayview still hot, many fighting to get 5r HDB @ 400-500k lol

first timer over subscription rate = 2.8
2nd timer = 12.5

Singaporeans has really has no financial sense

**eng81157** · 10-02-14, 09:40

$60k below valuation doesn't truly give us an idea whether the seller made a gain or loss.

my suspicions is a gain, just not as much as one would wish to have. probably committed to another property and kenna caught by TDSR and have to force-sell the HDB by a deadline.

**RCT** · 10-02-14, 09:45

Originally Posted by phantom_opera

Jan BTO Punggol Bayview still hot, many fighting to get 5r HDB @ 400-500k lol

first timer over subscription rate = 2.8
2nd timer = 12.5

Singaporeans has really has no financial sense

I am also thinking.. For 400 to 500k, I think you can get better deals if you are willing to go look for some resale houses. Sometimes you can get great deals now as now a lot of EC is going to TOP, quite a number of HDB owners are scrambling to sell their HDB flat even before the TOP date...

**phantom_opera** · 10-02-14, 09:54

HDB in mature estate next to mall / MRT will hold their prices still:

219C Bedok Ctrl 16 to 20 112.00
Improved 2010 $788,000.00

**august** · 10-02-14, 10:03

Jan BTO at ponggol is priced from $393k to 495k. Good luck to these buyers.

**Rosy** · 10-02-14, 10:11

Originally Posted by phantom_opera

Jan BTO Punggol Bayview still hot, many fighting to get 5r HDB @ 400-500k lol

first timer over subscription rate = 2.8
2nd timer = 12.5

Singaporeans has really has no financial sense

Sometimes these couples are not ready to ROM yet.

They do not need a flat now.

**phantom_opera** · 10-02-14, 10:35

Assume if I book a BTO now and market crashed 20%, can I just cancel the booking without significant financial loss?

**pod** · 10-02-14, 10:36

I think some HDB units condition really langa.. thats why nobody offered and seller just sell chop chop. lol

*langa defination:
-face rubbish bin centre, low floor, near noisy junction etc
-near crc, near mscp etc etc
-left right, up down all tenanted, noisy neighbours etc etc

**eng81157** · 10-02-14, 11:43

Originally Posted by phantom_opera

Assume if I book a BTO now and market crashed 20%, can I just cancel the booking without significant financial loss?

just forfeit the deposit of $1000 (or is it $2000)

**phantom_opera** · 10-02-14, 11:53

Originally Posted by eng81157

just forfeit the deposit of $1000 (or is it $2000)

what if 10% already paid?

**eng81157** · 10-02-14, 12:09

Originally Posted by phantom_opera

what if 10% already paid?

then just bite the bullet. anyway, the couple would need a roof over their head

**Patrickstar** · 10-02-14, 13:33

If want to sell $60k below valuation, might as well wait. As much as some home buyers are carrotheads, some home sellers are also turning themselves into carrotheads

**Amber Woods** · 10-02-14, 14:19

Originally Posted by Patrickstar

If want to sell $60k below valuation, might as well wait. As much as some home buyers are carrotheads, some home sellers are also turning themselves into carrotheads

There are two ways to look at it from a seller's point of view.

Assume that seller sells his flat six month later at say 30K below valuation instead of the 60K now. Six month later, valuation of his flat could well drop by another 30K. The nett sale amount is the same except that the seller who choose to sell now get his money 6-month earlier to do whatever he plans to do. If he sells 6-month later, he may need to get a bridging loan or some other loans to tie over the period. In this case, I think it makes sense to sell now.

**RCT** · 10-02-14, 14:24

If you think price is going down, you will sell. If you think price is going up, you will hold. But I feel this type of case will be those who upgrade to EC or 2nd time BTO. They have no choice but to sell. Don't worry as what a presenter at a HDB seminar say: "You are not alone".. Look at the number of EC being build and that is going to TOP... Get ready for a surge of HDB resale supply...

**princess_morbucks** · 10-02-14, 14:27

Originally Posted by Patrickstar

If want to sell $60k below valuation, might as well wait. As much as some home buyers are carrotheads, some home sellers are also turning themselves into carrotheads

Maybe the seller got deadline to meet , eg already got keys to another HDB or EC for more than 6 months or need cash/ CPF funds to pay for the new home.

**teddybear** · 10-02-14, 14:58

May be the house got bad fengshui, lots of bad things happened to residents after moving in, is haunted, murder in the house etc?

Originally Posted by princess_morbucks

Maybe the seller got deadline to meet , eg already got keys to another HDB or EC for more than 6 months or need cash/ CPF funds to pay for the new home.

**thomastansb** · 10-02-14, 15:43

Singaporeans will be damn happy to see this news.

Originally Posted by princess_morbucks

http://www.tnp.sg/content/resale-fla...elow-valuation

After viewing more than 100 flats in Punggol (above) over the past year, she found the five-room flat for a steal -- at $495,000, below valuation by a whopping $60,000.
The flat's new owner, who wanted to be known as Ms A. Lee, is in her 50s and lives with her maid. The general manager of an SME had moved from a four-room flat just a few blocks away.
She declined to reveal the exact amount but said that her previous flat was sold for about $460,000 and $17,000 below valuation.
While property agents said Ms Lee's case was unusual, the cash-over-valuation (COV) has been on the decline in recent months.
Last month, median COV fell to $3,000 — its lowest since the 2009 financial crisis. Almost 30 per cent of HDB resale deals closed below valuation.

**thomastansb** · 10-02-14, 15:47

They should just suck it up. They want prices to come down, it will come down. They should be happy that resale is dropping fast and furious.

Originally Posted by august

Jan BTO at ponggol is priced from $393k to 495k. Good luck to these buyers.

**teddybear** · 10-02-14, 15:58

Anyway, HDB flats are meant for basic and cheap and affordable homes, and it should be kept cheap without all those bells and whistles!

Originally Posted by thomastansb

They should just suck it up. They want prices to come down, it will come down. They should be happy that resale is dropping fast and furious.

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