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.