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<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD class=wintiny noWrap align=right>27369.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>http://www.h88.com.sg/article/HDB+urges+caution+when+buying+resale+flats+with+high+COV/
HDB urges caution when buying resale flats with high COV
Hot on the heels of oversubscribed Built-To-Order (BTO) flats comes a caution from HDB: watch out for resale flats with high Cash-Over-Valuation (COV).
A report on Channelnewsasia claims that an owner of a 4rm Bishan flat was asking for up to $100,000 COV, on top of a $460,000 valuation - meaning that the flat would cost $560,000 in total. Seems like the owners took inspiration from the Queenstown incident.
And although HDB urges buyers to do your research, they cannot control resale flat prices as they are the result of negotiations between willing buyers and sellers (who controls valuation prices? how is it tabulated? what ever happened to subsidized public housing?).
HDB also added that only 4 out of 13,000 4rm transactions last year had higher than $70,000 COV, confirming that only 0.03% of buyers are suckers did not do their research.
With that, we would also like to add our own little caution: sometimes these too good to be true high COV units don't actually exist. They are just tactics to get you all excited, and call them up to negotiate. When you try to view it, they tell you its been sold and introduce another one to you.
On a sidenote, the article also pointed out that 78% of HDB flats transacted in the 3rd quarter are now above valuation, as compared to 57% in the 2nd quarter; all this and the property market is only waking up from their traditional lull (August-before Chinese New Year)? Ouch. The job of Minister for National Development is just getting harder by the day.
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HDB urges caution when buying resale flats with high COV
A report on Channelnewsasia claims that an owner of a 4rm Bishan flat was asking for up to $100,000 COV, on top of a $460,000 valuation - meaning that the flat would cost $560,000 in total. Seems like the owners took inspiration from the Queenstown incident.
And although HDB urges buyers to do your research, they cannot control resale flat prices as they are the result of negotiations between willing buyers and sellers (who controls valuation prices? how is it tabulated? what ever happened to subsidized public housing?).
HDB also added that only 4 out of 13,000 4rm transactions last year had higher than $70,000 COV, confirming that only 0.03% of buyers are suckers did not do their research.
With that, we would also like to add our own little caution: sometimes these too good to be true high COV units don't actually exist. They are just tactics to get you all excited, and call them up to negotiate. When you try to view it, they tell you its been sold and introduce another one to you.
On a sidenote, the article also pointed out that 78% of HDB flats transacted in the 3rd quarter are now above valuation, as compared to 57% in the 2nd quarter; all this and the property market is only waking up from their traditional lull (August-before Chinese New Year)? Ouch. The job of Minister for National Development is just getting harder by the day.
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