COV for HDB resale flats drop
Dec 7, 2010 - PropertyGuru.com.sg
Singapore’s cooling measures are now taking effect in the property market, with home buyers paying lower cash premiums for HDB resale flats and less resale deals are taking place in the market, said National Development Minister Mah Bow Tan.
Mr. Mah said in an interview with Channel News Asia that the median cash-over-valuation (COV) paid by home buyers for HDB resale flats dropped to $22,000 in November, from $25,000 in October. This was the second straight month that the median COV has declined and a sign that the cooling measures implemented in end-August are now taking effect.
However, he said the full impact of the cooling measures will only be felt in the next two months.
He added that resale transactions have dropped by 30 percent in Q4 this year compared with the previous quarter.
Though there is no need for any additional cooling measures for now, he said the government will implement further measures only if necessary.
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After reading the report, I noticed MBT did not mentioned resales price trend. Out of curiosity, I did a sampling check for realse prices associating to 3 rooms HDB for 5 regions (AMK, Woodland, Tampines, Bt Merah & Jurong) with resales price information from HDB website.
Interestingly, 3 reigions resales prices actually went up between 3.9% to 9.7% and two regions went up marginally -0.75% & -1.28% .
For details, please see attached for information.
Question: Is the cooling measures effective as reported?
Comments from expert are welcome.