National Development Minister Khaw Boon Wan said home buyers are currently paying above the value assessed by professional valuers as it is “a seller’s market”.
Mr Khaw was replying to a parliamentary query by Member of Parliament for Tampines Group Representation Constituency, Baey Yam Keng, on the increasing cash-over-valuation figures.
Mr Khaw said the basis of valuation for all HDB flats are the same, whether they are resale flats transacted in the open market, flats affected by Selective Enbloc Redevelopment Scheme (SERS), or flats that are compulsorily acquired.
“Their values are assessed by a panel of professional valuers, based on established valuation principles (which comprise factors) such as location, size, storey height and the extent of renovations,” said Mr Khaw.
According to Mr Khaw, HDB advises buyers to think carefully before committing to a price which is substantially above what the professional valuers have estimated.
“Resale prices are determined by willing buyers and sellers; the government cannot intervene to determine the transaction prices for buyers and sellers,” Mr Khaw added. “We help players make informed decisions through timely release of pricing data via the HDB website.”
Source : Channel NewsAsia – 16 Oct 2012