COV for HDB flats drops to $15,000; lowest since July 2009

Cash premiums for Housing Board (HDB) flats fell $3,000 to a new low of $15,000 in September, monthly and third quarter flash estimates released by the Singapore Real Estate Exchange showed on Thursday. -- ST FILE PHOTO: JAMIE KOH  
Cash premiums for Housing Board (HDB) flats fell $3,000 to a new low of $15,000 in September, monthly and third quarter flash estimates released by the Singapore Real Estate Exchange showed on Thursday. -- ST FILE PHOTO: JAMIE KOH  

Cash premiums for Housing Board (HDB) flats fell $3,000 to a new low of $15,000 in September, showed monthly and third quarter flash estimates released by the Singapore Real Estate Exchange on Thursday.

This is the lowest since July 2009 when the overall Cash-Over-Valuation (COV) was $10,000.

Despite the drop in COV, however, overall HDB resale prices stayed relatively unchanged with an increase of 0.2 per cent from August, after four consecutive drops in preceding months. An estimated 1,164 HDB flats were sold in the resale market in September, slightly less than the 1,193 flats transacted in August.

The resale volume of HDB flats in the third quarter of 2013 has been 3,661 units, a 33 per cent drop from the same period in 2012. An estimated 4,459 HDB flats were leased out in the third quarter of 2013, 1 per cent more than the 4,406 leases signed in the same quarter of the previous year.