Khaw says it's unfair to blame PRs for higher COVs
He said that typically, PRs pay lower COVs.
Mon, Jan 16, 2012
AsiaOne
Permanent residents should not be blamed for the rising prices of resale flats, said National Development Minister Khaw Boon Wan in Parliament today.
Instead, he revealed that the buyers that up the stakes for the cash premium for flats are actually the local private property owners.
Mr Zaqy Mohamad, Member of Parliament for Choa Chu Kang GRC, had asked Mr Khaw if the Housing Board will consider limiting the sale of resale three-room and smaller flats to only lower-income Singaporeans.
Mr Zaqy said there is a 'common perception' that the increasing prices of resale flats, as well as the escalating amounts of cash premium paid to the sellers, more commonly known as the cash-over-valuation (COV), are due to PRs.
In August last year, C&H Properties real estate agent Daniel Tan told The Straits Times that sellers for four- to five-room resale flats in Woodlands, Ang Mo Kio and Bedok could command COV amounts ranging from $50,000 to $80,000. He said these sellers lowered their expectations to below $50,000 after HDB raised the income ceiling for new flats and housing subsidies.
In the third quarter of 2011, the median COV for three-room flats ranged from $27,900 to $34,000, according to the paper.
According to The Straits Times, Mr Khaw said: "The data (is) quite distinct. Typically, the PRs pay the lower COVs... among the groups, the higher COVs are often by private property owners, or former private property owners... especially the enbloc owners or residents, probably with a lot of cash and still need a roof... they are the ones who bid up the COV."
He added: "So let us don't unfairly blame a particular group for causing higher prices in the resale market."
Mr Khaw, who acknowledged that home prices have shot up in the last two to three years, said he has been working on the problem and asked for patience 'that the market will stabilise in due course'.
First bear with us. Now, please be patient. Where the fcuk is Affordable Mah?
[email protected]
He said that typically, PRs pay lower COVs.
Mon, Jan 16, 2012
AsiaOne
Permanent residents should not be blamed for the rising prices of resale flats, said National Development Minister Khaw Boon Wan in Parliament today.
Instead, he revealed that the buyers that up the stakes for the cash premium for flats are actually the local private property owners.
Mr Zaqy Mohamad, Member of Parliament for Choa Chu Kang GRC, had asked Mr Khaw if the Housing Board will consider limiting the sale of resale three-room and smaller flats to only lower-income Singaporeans.
Mr Zaqy said there is a 'common perception' that the increasing prices of resale flats, as well as the escalating amounts of cash premium paid to the sellers, more commonly known as the cash-over-valuation (COV), are due to PRs.
In August last year, C&H Properties real estate agent Daniel Tan told The Straits Times that sellers for four- to five-room resale flats in Woodlands, Ang Mo Kio and Bedok could command COV amounts ranging from $50,000 to $80,000. He said these sellers lowered their expectations to below $50,000 after HDB raised the income ceiling for new flats and housing subsidies.
In the third quarter of 2011, the median COV for three-room flats ranged from $27,900 to $34,000, according to the paper.
According to The Straits Times, Mr Khaw said: "The data (is) quite distinct. Typically, the PRs pay the lower COVs... among the groups, the higher COVs are often by private property owners, or former private property owners... especially the enbloc owners or residents, probably with a lot of cash and still need a roof... they are the ones who bid up the COV."
He added: "So let us don't unfairly blame a particular group for causing higher prices in the resale market."
Mr Khaw, who acknowledged that home prices have shot up in the last two to three years, said he has been working on the problem and asked for patience 'that the market will stabilise in due course'.
First bear with us. Now, please be patient. Where the fcuk is Affordable Mah?
[email protected]