HDB COV drops to lowest in 2.5 years

The overall cash premium, or Cash-Over-Valuation (COV), that buyers pay for HDB resale flats has dropped to its lowest in about two and a half years.

This is according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX) released today (Aug 7).

Overall HDB COV dropped S$4,000 in July from June to reach S$20,000 — the lowest since January 2011. This is compared to the peak of S$35,000 recorded in January this year.

SRX said overall COV has dropped by 43 per cent year-to-date.

This comes on the back of a 0.5-per-cent dip on overall HDB resale prices, marking the third consecutive monthly drop in HDB resale prices.

SRX said HDB resale volume remained relatively flat in July compared to June, with about 1,270 resale transactions recorded.

Year-on-year, July’s resale volume represented a 36-per-cent drop from the same period in 2012.

An estimated 1,760 HDB flats were rented in July, up by 13 per cent compared to June. This number also exceeded the 1,632 HDB rental transactions in July last year.

Meanwhile, resale prices of non-landed private homes rose marginally by 0.1 per cent in July, compared to the 0.8-per-cent increase in June.

This was led by the 1.2-per-cent price gain seen in the city fringes.

Resale prices of non-landed private homes in the city region fell 0.5 per cent while those in the suburban areas slipped 0.4 per cent.

An estimated 670 non-landed private homes were transacted in July, compared to 640 units in June.

Overall rental prices for non-landed private residential in July inched upwards by 0.2 per cent from June, reversing the drop in the past three months.

On a regional basis, rental prices in the city region gained 1.4 per cent. Rentals in the city fringes fell 0.9 per cent while suburban rentals declined 0.4 per cent.

Source : Channel NewsAsia – 7 Aug 2013