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SINGAPORE - Most Singaporeans are willing to pay a premium over and above valuation in order to secure their dream flats, a survey revealed on Tuesday.
Two-thirds of the survey's respondents (63.3 per cent) are willing to pay $10,000 to $25,000 in cash-over-valuation (COV), Singapore's property website iProperty.com.sg said.
The remaining are willing to pay even more for.
16.8 per cent will pay $25,001 to $35,000 in COV while 6.7 per cent are willing to offer between $35,001 to $45,000.
13.2 per cent of the respondents are willing to offer $45,001 and above.
This comes on the heels of recent reports of a unit at Tampines Street 12 which sold at $150,000 COV.
iProperty.com.sg said it reinforced current market sentiments that saw the return of higher COV with the tightened supply in the housing market.
On July 19, National Development Minister Khaw Boon Wan said that prices of Housing Development Board's (HDB) new flats are typically pegged to prevailing resale prices, but are discounted.
He was commenting on Singapore's all-time high property prices during his first official visit to HDB Hub.
Mr Shaun Di Gregorio, chief executive of iProperty Group, said that signs of a stabilising housing market are "beginning to appear".
But even though the survey revealed that most buyers are willing to fork out top dollar for their dream homes, there is "still some way to go in addressing affordability issues", he said.
Mr Di Gregorio said: "Home buyers are still anxious to see what comes with the review of the income ceiling for first-timers to buy Build-To-Order (BTO) flats, as well as the review of the Design, Build and Sell Scheme (DBSS), and how this affects prices of the remaining 9,500 new flats by year end, and subsequently, the impact on resale prices."
A total of 327 respondents took part in this online survey from June 28 to July 19.
