70% of sky habitat snapped up in a day!

[kane]

The banks and HDB is already taking 10%-20% buffer for the loan.
Why do we need COV at all?
Just make valuation truelly reflect the market price and COV will be close to 0.

Thanks,
Richard

The unwanted side effects of taking away COV could be a sudden spike up of hdb prices.

[evergreen]

The banks and HDB is already taking 10%-20% buffer for the loan.
Why do we need COV at all?
Just make valuation truelly reflect the market price and COV will be close to 0.

Thanks,
Richard

They need to re-look at how the valuation is done in the first place. If there's a rotting built-in kitchen cabinet, the valuation is higher when it should in fact be lower because the buyer needs to fork out extra money to get rid of it.

The existing valuation method no longer adequately reflect the value of flat.

People pay COV to bridge the difference. E.g. "move in" condition flats and those near MRT command higher COV.

[House]

They need to re-look at how the valuation is done in the first place. If there's a rotting built-in kitchen cabinet, the valuation is higher when it should in fact be lower because the buyer needs to fork out extra money to get rid of it.

The existing valuation method no longer adequately reflect the value of flat.

People pay COV to bridge the difference. E.g. "move in" condition flats and those near MRT command higher COV.

Ya lor. Really Donno how the heck the valuations is being done.

[kane]

They need to re-look at how the valuation is done in the first place. If there's a rotting built-in kitchen cabinet, the valuation is higher when it should in fact be lower because the buyer needs to fork out extra money to get rid of it.

The existing valuation method no longer adequately reflect the value of flat.

People pay COV to bridge the difference. E.g. "move in" condition flats and those near MRT command higher COV.

People also pay Cov after taking into account the potential high rentals they have to pay.

[richie$$$]

c if forum still hot once rate goes up in 2 yrs time

[kane]

In 1995, interest rates were rising and property narket was hot.

[Arcachon]

The banks and HDB is already taking 10%-20% buffer for the loan.
Why do we need COV at all?
Just make valuation truelly reflect the market price and COV will be close to 0.

Thanks,
Richard

First the valuation is a control valuation in HDB.

Valuers need to sent in their valuation report to HDB for approval.(need to confirm, the last time I did my HDB valuation was 1995 and was told by the Valuer). If the valuation is not what the HDB think it is, the valuer need to change to the correct value otherwise they will not be the next panel of valuers.

With this type of valuation, valuation of HDB in the uptrend is always lower than the market value thus the COV. Same goes to the downtrend.

Anyone doing Valuation on their HDB can ask the valuer whether they need to sent to HDB for approval to know the truth.

Recall HDB allow cash-out and bank start to do valuation and valuation start to shoot up the roof and was stop by HDB later. Look like they are going to let market set the valuation of HDB by first removing the COV data or they are losing control on the panel of valuers.


http://www.hdb.gov.sg/fi10/fi10321p....n?OpenDocument

Valuation Process

The valuations are carried out by HDB's panel of valuers who are professionally qualified and licensed by the Inland Revenue Authority of Singapore (IRAS).

Listed below are the procedures on how a valuation process is carried out:

1 On receiving the completed request form with the payment, HDB will assign a valuer randomly from its panel to assess the flat’s value.

2 The valuer will arrange with the flat owner to view the flat for assessing the value of the flat

3 The valuation report is usually ready within 2 weeks after the valuer’s visit and will be sent to the requestor by post

4 The valuation report is valid for a period of 3 months from the date of the report

[Arcachon]

In 1995, my 4 Room A model HDB in Kim Keat Ave was valuated at 195K when the market is selling at 300K. My buyer later get another valuation for 235K and I sell it for 285K. The buyer have to paid the different between the valuation and the selling price and 20% of the valuation price =97K in cash. (285K-235K= 50K+((20% of 235K)=)47K.

I brought the unit for 83K in 1988 and stay for 7 years, after the second appointment with HDB I got a cheque of 180K. I use this for a deposit for a 3 Rm resale (95K-30K=65K)for my in law, some for renovation of my 5 Rm, take another loan of 200K for 25 years and hold the rest of the cash till 2006.

The market is getting hot and feel like 1995, those thinking of buying need to think twice.

[Arcachon]

Now selling for 515K.

http://www.propertyguru.com.sg/listi...avenue-9514348

[yjcai]

They are really so stupid! Ban renting out of whole HDB flats will solve the problem! If caught, house confiscated and HDB buy back at 30% below valuation!

The genuine demand for renting shift to other asset class?

[kane]

In 1995, my 4 Room A model HDB in Kim Keat Ave was valuated at 195K when the market is selling at 300K. My buyer later get another valuation for 235K and I sell it for 285K. The buyer have to paid the different between the valuation and the selling price and 20% of the valuation price =97K in cash. (285K-235K= 50K+((20% of 235K)=)47K.

I brought the unit for 83K in 1988 and stay for 7 years, after the second appointment with HDB I got a cheque of 180K. I use this for a deposit for a 3 Rm resale (95K-30K=65K)for my in law, some for renovation of my 5 Rm, take another loan of 200K for 25 years and hold the rest of the cash till 2006.

The market is getting hot and feel like 1995, those thinking of buying need to think twice.

Your illustration lays the effects of inflation bare for all to see. And 1996 was the year when property prices went exponential.

[Arcachon]

https://secure.mas.gov.sg/calculator...dservices.aspx

[Arcachon]

Housing prices have always been a hot topic for discussion amongst Singaporeans. Both academics and netizens have written extensively on the relentless rising cost of living due to housing price inflation. In a footnote to a 2008 paper on Singapore’s policy responses to ageing and retirement, Prof Mukul Asher cites a 2007 Citi memo (which I have unfortunately not been able to unearth) authored by Dr Chua Hak Bin arguing that Singapore’s inflation rate was severely understated primarily due to the way housing inflation was calculated:

Chua (2007b) has argued that the inflation rate in Singapore, as measured by the consumer price index, is significantly understated, primarily because of the way the housing component is incorporated.

One of the bigger mysteries in Singapore is that although public housing prices have gone through the roof, inflation has not. Why should this be so, especially since home-ownership rates in Singapore is one of the highest in the world (88.8% as of 2009). What determines how housing prices in Singapore affects the inflation rate? To answer this question, we must examine how housing prices are factored in the consumer price index (CPI) . This may come as a surprise to some, but housing prices in Singapore are not reflected in the CPI.

http://furrybrowndog.wordpress.com/2...ingapores-cpi/

[felicia_sg]

But housing prices has never been a component in CPI anywhere in the world (only rental is), so why should Singapore be different?

Housing prices have always been a hot topic for discussion amongst Singaporeans. Both academics and netizens have written extensively on the relentless rising cost of living due to housing price inflation. In a footnote to a 2008 paper on Singapore’s policy responses to ageing and retirement, Prof Mukul Asher cites a 2007 Citi memo (which I have unfortunately not been able to unearth) authored by Dr Chua Hak Bin arguing that Singapore’s inflation rate was severely understated primarily due to the way housing inflation was calculated:

Chua (2007b) has argued that the inflation rate in Singapore, as measured by the consumer price index, is significantly understated, primarily because of the way the housing component is incorporated.

One of the bigger mysteries in Singapore is that although public housing prices have gone through the roof, inflation has not. Why should this be so, especially since home-ownership rates in Singapore is one of the highest in the world (88.8% as of 2009). What determines how housing prices in Singapore affects the inflation rate? To answer this question, we must examine how housing prices are factored in the consumer price index (CPI) . This may come as a surprise to some, but housing prices in Singapore are not reflected in the CPI.

http://furrybrowndog.wordpress.com/2...ingapores-cpi/

[House]

Housing prices have always been a hot topic for discussion amongst Singaporeans. Both academics and netizens have written extensively on the relentless rising cost of living due to housing price inflation. In a footnote to a 2008 paper on Singapore’s policy responses to ageing and retirement, Prof Mukul Asher cites a 2007 Citi memo (which I have unfortunately not been able to unearth) authored by Dr Chua Hak Bin arguing that Singapore’s inflation rate was severely understated primarily due to the way housing inflation was calculated:

Chua (2007b) has argued that the inflation rate in Singapore, as measured by the consumer price index, is significantly understated, primarily because of the way the housing component is incorporated.

One of the bigger mysteries in Singapore is that although public housing prices have gone through the roof, inflation has not. Why should this be so, especially since home-ownership rates in Singapore is one of the highest in the world (88.8% as of 2009). What determines how housing prices in Singapore affects the inflation rate? To answer this question, we must examine how housing prices are factored in the consumer price index (CPI) . This may come as a surprise to some, but housing prices in Singapore are not reflected in the CPI.

http://furrybrowndog.wordpress.com/2...ingapores-cpi/

[radha08]

how the sales at SH...