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HDB COV for August sinks to 4 year low

Rogue Trader

Alfrescian (Inf)
Asset
RESIDENTIAL PROPERTY | Staff Reporter,
Singapore Published:
43 sec ago

valuation hit 4-year low

It dropped to $18,000.

According to SRX, overall HDB Cash-Over-Valuation (COV) dropped $2,000 in Aug to reach $18,000 - the lowest since Jul 2009, when the overall COV was $10,000.


The lowest COV by region is in Punggol HDB Executives where 2 out of a total of 3 transactions last month were sold below valuation. The median COV was -$13,000. On the flip side, the highest COV is seen in Bishan HDB Executives where the median COV was $120,000.


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Scrooball (clone)

Alfrescian
Loyal
Market demand is starting to wane....and it shows in the COV.

But they need to address the problem of the high property cost more. HDB BTO costing $500k is hardly what one will consider as affordable.
 

Rogue Trader

Alfrescian (Inf)
Asset
Market demand is starting to wane....and it shows in the COV.

But they need to address the problem of the high property cost more. HDB BTO costing $500k is hardly what one will consider as affordable.

They can't bring the prices down or else many sinkies will end up with negative equity.

Mah bow tan should be charged for high treason for this state we're in.
 

LeMans2011

Alfrescian
Loyal
No, COV low means buyers no longer willing to pay obscene amount above the valuation. It also means sellers willing to let go at low COV. In gist, it means HDB resale market is weakening.

You can't be sure of that. Gotta look at actual transacted price of similar properties. COV alone does not tell the full picture.
There was a time where COV went really low because valuation went up... and then after 6 months the COV and total purchase price climbed again.
 

blackmondy

Alfrescian (Inf)
Asset
Fucking COV shouldn't exist in the first place.

It's just a more palatable term for "bribery".
 

@rmadill0

Alfrescian
Loyal
You can't be sure of that. Gotta look at actual transacted price of similar properties. COV alone does not tell the full picture.
There was a time where COV went really low because valuation went up... and then after 6 months the COV and total purchase price climbed again.

COV will lead the increase of valuation as it increases the eventual transacted price which will then increase the valuation of the next property put on sale in the area.

So the reverse is also true. When the COV decreases, the eventual transacted price will not increase that much as the COV softened.

COV is the first indication of sentiment. It will then determine who the price will go subsequently.
 

chupacabra

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Loyal
Yup dunno why sinkees use COV as a yardstick..As it is HDB is still not affordable no matter what sinkees or the gobermant says..
 
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chupacabra

Alfrescian
Loyal
COV will lead the increase of valuation as it increases the eventual transacted price which will then increase the valuation of the next property put on sale in the area.

So the reverse is also true. When the COV decreases, the eventual transacted price will not increase that much as the COV softened.

COV is the first indication of sentiment. It will then determine who the price will go subsequently.

I think using COV is just beating around George Bush..Until the prices do come down..and stays down..than can talk..
 

Scrooball (clone)

Alfrescian
Loyal
The issue still stems from the root problem of pegging price of HDB flats to open market value, which defeats the meaning of govt subsidized housing.
 

chupacabra

Alfrescian
Loyal
It is still a very good leading indicator of demand

It can also mean property agents are telling their sellers to lower their COV to sell quickly..Property agents also want money fast..who doesnt..

If a HDB unit is sold at a lower COV but still manage to be sold above valuation..sinkees are still fucked man..
 

watchman8

Alfrescian
Loyal
Yup dunno why sinkees use COV as a yardstick..As it is HDB is still not affordable no matter what sinkees or the gobermant says..
Because it is not straight forward to compare monthly data of hdb selling price due to different mix of size, location, facing etc. to see actual pricing trend needs a longer time, at least quarterly. COV gives an interim indication of pricing direction.
 

watchman8

Alfrescian
Loyal
The issue still stems from the root problem of pegging price of HDB flats to open market value, which defeats the meaning of govt subsidized housing.
The ultimate root problem was why housing supply was not increased in line with immigrant growth? MND minister controls housing supply via new hdb and ura land sale. There was a deliberate decision by either pinky or old man to keep housing supply tight while ramming up immigrants. We may never know if it was MBT, pinky, old man or entire cabinet that conspired to jack up housing price, until cabinet meeting minutes are released.
 

chupacabra

Alfrescian
Loyal
Bro I think COV cannot be used as indicator at all.. It only means buyers dont wanna pay cash upfront....or sellers are spook into thinking that their properties will not sell if their COV are high due to the current measures..I just think COV is more not straight forward than eventual selling price..

We'll wait and see if the low COV has any actual impact in the selling price..eventually.
 
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