HDB resale flats with existing valuations favoured by buyers

Buyers are favouring resale flats which already have official valuations, as such deals offer more certainty, say agents.

Since March 10, the Housing Board has accepted valuation requests only from buyers who have been granted an Option to Purchase by the seller. But it will honour valuations which were granted earlier and have not expired.

"As a typical valuation report is valid for up to three months, many transactions this month are not really affected by the changes yet," said OrangeTee managing director Steven Tan.

Said PropNex Realty agent Michelle Lai: "(Buyers) are not buying the units that fall under the new ruling. They're buying the units with existing valuation."

The HDB valuation decides a buyer's maximum housing loan and how much Central Provident Fund savings he can use.

By knowing the valuation at the point of agreeing a price - as was the case under the old process - the buyer can judge how much cash he will need to pay.

This certainty is absent in the new system, since a price is agreed before the valuation is granted. And that is why flats without existing valuations "are the ones that buyers aren't keen on", said Spacez Real Estate agent Cheryl Tan.

JANICE HENG