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$160,000 COV for a 3 decade old Pasir Ris 5 room resale HDB.

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5th Gear

https://www.todayonline.com/singapore/cash-over-valuation-back-spotlight-rising-property-demand-drives-resale-prices

Cash over valuation back in the spotlight as rising property demand drives resale prices up

SINGAPORE — Having seen property prices tumble during the 1997 Asian Financial Crisis and the severe acute respiratory syndrome (Sars) outbreak in 2003, Mr Ng thought the ongoing Covid-19 pandemic would present him with a golden opportunity to secure his dream retirement home at a discount.

Instead, the 66-year-old retiree saw prices “go up tremendously” as he ended up having to fork out about S$160,000 in cash over valuation (COV) for a five-room resale Housing and Development Board (HDB) flat in Pasir Ris. The 27-year-old recently renovated flat came with a price tag of around S$650,000.

Mr Ng had sold his private property in late 2019, just months before the coronavirus ravaged economies worldwide.

"I panicked as I felt that if I don’t buy now, the price may increase further,” said Mr Ng, who declined to give his full name. He eventually signed an option-to-purchase (OTP) early last week for the flat, which is located on the highest floor of its block.

The COV refers to the difference in the sale price of a resale flat and its actual valuation by HDB. If the valuation is lower, the difference has to be paid in cash.

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Hypersonic (edited)

Huh so carrot? 

Oh OK cash rich downgrader. These make up 1% of the resale market lah. 

Normal buyer don't behave like that one lah. 

Edited by Lala81
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5th Gear (edited)
25 minutes ago, Lala81 said:

Huh so carrot? 

Oh OK cash rich downgrader. These make up 1% of the resale market lah. 

Normal buyer don't behave like that one lah. 

Even if he's cash rich, paying $160,000 COV for a 30 year old HDB flat right at the extreme eastern end of the island is a bit hard to fathom. 

Anyway the article also stated that :

"With the recent unexpected recovery of the property market during the Covid-19 pandemic, COV has begun making a comeback — after staying suppressed for years — due to the pent-up demand for homes.

Anecdotally, property experts told TODAY that recent COV figures typically range between S$10,000 and S$50,000. However, it is not unheard of for someone to pay between S$100,000 and S$200,000 for choice flats."

Edited by noobcarbuyer
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Turbocharged (edited)
30 minutes ago, Lala81 said:

Huh so carrot? 

Oh OK cash rich downgrader. These make up 1% of the resale market lah. 

Normal buyer don't behave like that one lah. 

Or en bloc waiting game trying to catch the Low .. 

willing buyer or not, have seen folks selling thinking the end is near to buy it when it crash.

only to see it sky Rocketed after selling 

Edited by Sdf4786k
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Twincharged (edited)

worldwide governments have pumped and are still pumping $$ into their economies...  Loans are unusually cheap ... scalpers be careful when the carry becomes too painful... 

66yr old buy for self stay .. doesnt matter how much longer that property will last la .... COV is more for the renovations the previous owner did i feel...  

Edited by SuPerBoRed
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Twincharged

He sold his private property, being a retiree, he has probably bought his private property long ago meaning has made a fortune, so the sum he paid for is not significant  by his wealth. End of the day, happy 就好。

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Turbocharged

why we zhng chia dun hav cov when selling one huh 🤔 

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Moderator

He bought his relative house issit? hahaha. After that 50/50 the cash.

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Twincharged
31 minutes ago, Ct3833 said:

He sold his private property, being a retiree, he has probably bought his private property long ago meaning has made a fortune, so the sum he paid for is not significant  by his wealth. End of the day, happy 就好。

Sounded so much like mcf. Hahaha

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Turbocharged

Its either he walk off or succumb to the COV. I'd rather lose the deposit. Now that pasir ris area recent transactions will affect future buyers.

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Twincharged (edited)
4 minutes ago, UncleAtas said:

Its either he walk off or succumb to the COV. I'd rather lose the deposit. Now that pasir ris area recent transactions will affect future buyers.

potential sellers will be happy. But again, pasir ris is not a hot area like Redhill or Bishan that people will snatch for it, the price and demand of housing there will not  be easily  influenced by just one isolated transaction .

Edited by Ct3833

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Supersonic (edited)
1 hour ago, Lala81 said:

Huh so carrot? 

Oh OK cash rich downgrader. These make up 1% of the resale market lah. 

Normal buyer don't behave like that one lah. 

66 yr old uncle chasing the market.....just like some goons who pay 100% above msrp for a steel Rolex.  .feel sorry for such fellas sometimes, but then again, many are flippers, so let them ..🤣😂

Edited by Throttle2

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Hypersonic

"I panicked"

Stupidity always follow fear or greed.

:D

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6th Gear

I bet he made way more on his private property when he sold it. No harm spreading the profits around. Huat ah!

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Turbocharged

some HDB blocks/areas/units are very coveted due to some USP. It's always high demand but low or nil supply for years.

maybe the flat he bought is one of those units which he might have eyed for years. 

as long as he can afford it and is happy, jiu hao.

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Supersonic (edited)

So govt will kick in more cooling measures soon?

We dont know who this 66yo is or what he used to be. Cant expect much.

Edited by Watwheels

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5th Gear (edited)
1 hour ago, Lala81 said:

Huh so carrot? 

Oh OK cash rich downgrader. These make up 1% of the resale market lah. 

Normal buyer don't behave like that one lah. 

same sentiment - maybe poorly informed...HDB building so many HDBs, still paying so much for what....just live further away lor...Pumggol, Pasir ris, Yishun, woodlands, jurong ....all not that far ler.

don't understand...maybe got money, then also got maney also not spend like this lor….do charity work better...[laugh]

Edited by Spidey10
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