Good news or bad news?

Cash-over-valuation (COV) for Housing and Development Board (HDB) flats dropped $2,000 from December 2013to hit $3000 on Jan 2014 . The median COV of $3,000 is on par with the previous low in June 2009 during the Global Financial Crisis.

Eight out of 28 HDB towns recorded zero or negative median COV. Sengkang and Punggol led the drop with zero negative overall COVs, while Bishan, Geylang, Jurong West, Sembawang, Woodlands and Yishun recorded zero overall median COV.  We can see that sellers in traditional popular towns such as Bishan ( * Yes, BISHAN ) and geylang which is nearer to city are becoming more realistic now. *Refer to the diagram below

COV 2014 Jan Map

Almost 30% per cent of HDB resale deals were closed below valuation in Jan 2014, an increase from the 20.4 per cent that closed below valuation in December 2013.

Overall, HDB resale prices gained a  0.3 per cent in January 2014. On a year-on-year basis, January’s resale volume posted a 34.6 per cent drop from 1,365 flats sold over the same month of last year to 893 this year.

HDB median rents however are stable with median rents at S$2,300 in January, after two consecutive monthly drops in November and December 2013.

Source : Straits Time, SRX, HDB, CNA 

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