COVs for Housing Board flats continue to drop because of cooling measures

Cash premiums paid for Housing Board flats continue to dip as a result of cooling measures. The overall median cash-over-valuation for HDB units has slid to $24,000 in June, the lowest figure in more than two years said the Singapore Real Estate Exchange (SRX) on Friday.

The median premium stood at $35,000 in January, when the government introduced measures such as capping the mortage servicing ratio for home loans.

SRX figures also showed a decline in transaction numbers last month, with only 1,210 flats estimated to be changing hands.

This is 32 per cent lesser than the 1,790 cases witnessed in June last year.

In tandem, the overall median resale price for HDB flats have also taken a beating. It dropped from $457,000 in May to $450,000 last month.