COVs for resale flats fall to 4.5 year low

The median cash-over-valuation (COV) for HDB flats has dropped yet again to $3,000 in the month of January, according to fresh market data.

Previously, the median COV had fallen to $5,000 in December 2013.

January's figure released by the Singapore Real Estate Exchange (SRX) is the lowest since similar levels were matched in June 2009 during the global financial crisis.

Eight out of 28 HDB estates reported zero or negative median COV, namely Bishan, Geylang, Jurong West, Punggol, Sengkang, Sembawang, Woodlands and Yishun.

Despite the decline, HDB resale prices bucked the trend. They inched up by 0.3 percent in the month which reverses the general decline seen in the market since Q2 2013.

Meanwhile, demand for resale flats remains tepid with the sales volume falling to 893 transactions last month from 910 in December 2013.

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

Related Stories:

Market Outlook: HDB sector to see declines

HUDC era comes to an end

S$226m bid for Canberra EC site

More from PropertyGuru:
First lighthouse to be built atop HDB block
Market Outlook: HDB sector to see declines
HUDC era comes to an end
S$226m bid for Canberra EC site