COV for HDB resale flats up in Q2

Cash over valuation (COV) paid for public resale flats rose to around S$30,000 in the April to June period, after easing out in the first quarter, where the average COV stood at S$21,000, according to data obtained by The Sunday Times.

With continued high demand for flats, the median COV, which is the amount paid by buyers for the valuation of a resale flat, was likely similar to the S$30,000 official record in Q3 last year.

According to The Straits Times, the latest figures were obtained from the three biggest property agencies in Singapore: ERA Asia-Pacific, Dennis Wee Group (DWG) and PropNex, which account for nearly two-thirds of HDB resale market sales.

Spokesmen from smaller agencies such as C&H Properties noted that their data also showed an increase of median COV to around S$30,000.

However, agency officials note that their COV findings might be slightly higher compared to HDB’s official figures, which are expected to be released this week. This is because sales data is recorded at an earlier point of the buying process, when the buyer exercises his option to purchase a flat, they said.

Data from the agencies showed median COV increases across most estates, especially in popular areas like Central, Queenstown and Bishan.

PropNex said the median COV for all types of flats hit S$55,000 in Central, S$54,000 in Queenstown and S$35,000 in Bishan.

Based on HDB’s official data, PropNex’s figures showed an overall median increase of S$27,000, S$23,000 and S$29,500 in Q1 respectively.

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