COV for HDB resale flats falls to S$5,000 in Dec 2013

SINGAPORE: The overall median cash premium or Cash-Over-Valuation (COV) for HDB resale flats fell to S$5,000 in December last year, from S$8,000 in November 2013.

This is the lowest since June 2009 when COVs were at a low of S$3,000.

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It was a 37.5 per cent drop month-on-month, according to the latest flash report released by the Singapore Real Estate Exchange (SRX) on Thursday.

In December, about one in five (20.2 per cent) HDB resale transactions or 141 transactions were also made below valuation, or at a negative-COV.

That is an increase from 13 per cent in November and just 0.6 per cent in January last year.

According to SRX, the overall median valuation also fell in the fourth quarter of 2013.

It fell from S$438,000 in the third quarter, to S$435,000 in the fourth.

This decline in valuation is a first since the fourth quarter of 2009, during the global financial crisis.

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