COV for resale flats fall below S$10,000 in Nov 2013

Cash premiums for resale flats fell below S$10,000 in November for the first time since July 2009.

According to flash estimates compiled by the Singapore Real Estate Exchange (SRX), the cash-over-valuation (COV) for HDB resale flats reached S$8,000 in November.

Meanwhile, 13.1 per cent of HDB resale deals closed below valuation in November, up from October’s 8.5 per cent. Sengkang, Choa Chu Kang, and Jurong West saw the most numbers of negative COV deals in that month.

Overall HDB resale prices dropped 0.6 per cent in November, reaching the lowest level since September 2012.

SRX said 1,051 HDB flats were re-sold in November, down 11.5 per cent from October (1,187). Compared to a year ago, resale volumes fell 34 per cent.

Meanwhile, resale prices of private homes declined 1.5 per cent in November, marking the third consecutive monthly drop in the overall resale price index.

SRX said this is also the lowest price level observed in this year, down 4.1 per cent from the peak in February.

Prices fell across the board for resale transactions across the island, with private homes in the city area contracting by 2.0 per cent.

Prices of resale homes in the suburban areas dipped 0.9 per cent, while those in the city fringe declined 0.7 per cent.

About 387 non-landed homes were resold in November, down 22.9 per cent from October. On a year-on-year basis, this represented a 62 per cent drop from the 1,019 units transacted in November 2012.

Source : Channel NewsAsia – 5 Dec 2013

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