COV drops to the Lowest level in 2.5 years

COV, Cash over valuation had dropped to the lowest level in 2.5 years. It’s heartening to hear that, but the truth is only half told.

As I mention before, the valuation of the HDB is consider with a few factors including the recent selling price of the similar flat in the estate.

Thus with the ever-increasing valuation, couple with the COV, the price of a flat is actually increasing.

Let look at an example,

A 4-room flat sold in Apr 2013, valuation of $400k with COV of $25K. Total price is $425K.

In July, similar Flat in the vicinity with a valuation of $410K with COV of $20K. Total Price is $430K.

According to HDB website, In Apr 2013, Blk 183 of Bedok North Road, 06-10 Level, sold at $575K, in July 2013, Blk 180, 06-10 level, sold at $590K.

With the ever-increasing price of the HDB flat, I urge the government to relook into revamping how the valuation of the flat is done. With the ever positive COV, the valuation of the HDB flat will be ever-increasing.

One suggestion that I would give is: The COV should not factor into the valuation process of the flat.

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