COVs for flats fall to 2 1/2-year low

HDB flats along Compassvale Drive appear in this photo taken on June 18, 2013. Overall Housing Board cash-over-valuation (COV) continued a steady decline in July to $20,000, its lowest point since January 2011. -- ST FILE PHOTO: JOYCE FANG
HDB flats along Compassvale Drive appear in this photo taken on June 18, 2013. Overall Housing Board cash-over-valuation (COV) continued a steady decline in July to $20,000, its lowest point since January 2011. -- ST FILE PHOTO: JOYCE FANG

Overall Housing Board cash-over-valuation (COV) continued a steady decline in July to $20,000, its lowest point since January 2011.

This was $4,000 lower than the month before, according to monthly flash figures from the Singapore Real Estate Exchange (SRX).

Overall HDB COV, or cash premiums over a flat's valuation, has also dropped 43 per cent in the half a year since it peaked at $35,000 in January 2013. Overall HDB resale prices also dropped for the third consecutive month, slipping 0.5 per cent.

However, the number of public flats sold stayed relatively flat with 1,270 exchanging hands in July, similar to June's 1,266 resale cases. This was a 36 per cent drop from the same period in 2012.

The rental market however saw a boost with an estimated 1,760 flats rented in July, 13 per cent more than the month before.