{"id":120551,"date":"2021-07-06T02:24:24","date_gmt":"2021-07-05T19:24:24","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/proportion-of-hdb-resale-buyers-paying-cov-on-the-uptick\/"},"modified":"2021-07-18T17:03:05","modified_gmt":"2021-07-18T10:03:05","slug":"proportion-of-hdb-resale-buyers-paying-cov-on-the-uptick","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/proportion-of-hdb-resale-buyers-paying-cov-on-the-uptick\/","title":{"rendered":"Proportion of HDB resale buyers paying COV on the uptick"},"content":{"rendered":"


\nDespite the increase, the ministry noted that the majority of HDB resale buyers did not pay any COV, with the median COV for each year remaining at $0.
\nThe proportion of HDB resale buyers paying a Cash Over Valuation (COV) has been on the uptrend, rising from about one in five in 2020 to about one in three this year, said the Ministry of National Development (MND).
\n\u201cThis reflects the current broad-based demand for housing, including in the private housing market, supported by the low-interest rate environment,\u201d it said in a written reply to Parliament on Monday (5 July).
\nDespite the increase, the ministry noted that the majority of HDB resale buyers did not pay any COV, with the median COV for each year remaining at $0.
\nMND made the statement in response to Member of Parliament Edward Chia Bing Hui\u2019s query on whether there is an increasing trend of COV for HDB resale flats.
\nCOV arises when the resale price agreed upon by the flat sellers and buyers is higher than the flat\u2019s market valuation, with the difference payable only in cash.\u00a0
\nMND revealed that the current proportion of HDB resale buyers who paid COV is \u201csignificantly lower compared to the period between 2010 and 2013, which was the previous period when more transactions with COV were observed\u201d.
\n\u201cAt that time, almost all resale flat buyers paid a COV,\u201d it said.
\nBack then, the sellers obtain first a valuation from the HDB, before negotiating a COV with the flat buyers \u201cwhich will determine the resale price\u201d.
\nThe HDB put an end to such practice in 2014 by requiring the buyers and sellers to first agree on the resale price, before securing the valuation for the purpose of determining the housing loan amount and CPF savings that could be used for the acquisition of the flat.
\n\u00a0
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email:\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Proportion of HDB resale buyers paying COV on the uptick<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the increase, the ministry noted that the majority of HDB resale buyers did not...<\/p>\n","protected":false},"author":1,"featured_media":120552,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-120551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/New-HDB-flats.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vmn","jetpack-related-posts":[{"id":119937,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-buyers-willing-to-pay-extra-cash-for-hdb-resale-flats\/","url_meta":{"origin":120551,"position":0},"title":"More buyers willing to pay extra cash for HDB resale flats","date":"January 29, 2021","format":false,"excerpt":"\r One of the factors\u00a0causing the higher demand and premium prices of resale HDB flats include buyers\u2019 desire for a larger living space following the experience during the circuit breaker.\u00a0 Property agents has observed a growing number of buyers who are willing to pay extra cash on top of actual\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/HDB-prices.jpg?fit=840%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":122996,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/incomes-have-kept-pace-with-prices-of-new-hdb-units-resale-flats\/","url_meta":{"origin":120551,"position":1},"title":"Incomes have kept pace with prices of new HDB units, resale flats","date":"November 3, 2021","format":false,"excerpt":"\r HDB subsidies for new and resale flats keep public housing affordable; among resale flat buyers who have taken\u00a0up an HDB loan, the mortgage servicing ratio\u00a0has remained stable at 23%. 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