19-01-2012, 08:01 AM
Crazy numbers eh? Paying $45,000 in CASH for an HDB.....Welcome to Singapore!
The Straits Times
Jan 19, 2012
Highest COVs paid by private property downgraders
By Daryl Chin
NATIONAL Development Minister Khaw Boon Wan yesterday released figures to back up his argument that permanent residents are not to blame for pushing up the cost of resale flats.
Singaporeans who owned private property actually forked out the highest cash premiums over and above the official price in the last quarter, according to data on his blog.
Permanent residents came in fourth out of five groups compared by the minister. This is despite a common perception that they are making the market more competitive, which pushes up the cash premiums on resale units.
These payments, called cash-over-valuations (COV), are often put down by buyers competing to secure a flat.
According to Mr Khaw's data, private property owners paid the most in the last quarter - a median figure of $45,000. Next, at $34,000, were second-time buyers who had sold their first flat. First-timers paid $33,000.
Permanent residents came in fourth, at $32,000, only just above single buyers, who paid a median COV of $31,000.
The minister released the data to flesh out his answer to a question in Parliament on Monday. Mr Zaqy Mohamad, an MP for Chua Chu Kang GRC, had asked whether the Housing Board would consider changing the rules so that only lower-income Singaporeans could buy resale flats with three rooms or fewer.
Mr Khaw wrote on his blog that the Government can track the median COVs paid by different groups. He emphasised the importance of being transparent.
'We monitor HDB resale prices, and publish them for information of potential buyers and sellers,' he said. 'Transparency helps make the market run better.'
His data did not convince all experts, however. Some said more information was needed before a meaningful analysis could be made.
For example, it would help to know the types of flats bought by the five groups, said SLP International's Mr Nicholas Mak. 'Private property owners could be buying larger flats such as five-roomers, and therefore the COV paid is higher in absolute terms,' he said. 'Likewise, singles, who generally buy smaller flats, could be paying less COV.'
He added that resale prices have been rising steadily since 2002, and that more information was needed to help explain which of the groups has been contributing to this increase. 'The latest data only shows one quarter, it may not be reflective of all the quarters over the past few years,' he added.
Others, however, said the figures were not far off the mark. Mr Eugene Lim, key executive officer of ERA Realty, called for more specific information, such as a breakdown by flat types. But he said the data does reflect the feeling on the ground. Private property owners who have sold up due to the current high prices, or gone through a lucrative collective sale, may be able to afford to pay COVs of up to $100,000, he said.
PropNex chief executive Mohamed Ismail noted that permanent residents generally do not have as much in their Central Provident Fund (CPF) accounts as citizens: 'Many permanent residents are not CPF-rich, while Singaporeans, be they singles or newly married couples, do qualify for grants if they live near their parents, for example.'
The Straits Times
Jan 19, 2012
Highest COVs paid by private property downgraders
By Daryl Chin
NATIONAL Development Minister Khaw Boon Wan yesterday released figures to back up his argument that permanent residents are not to blame for pushing up the cost of resale flats.
Singaporeans who owned private property actually forked out the highest cash premiums over and above the official price in the last quarter, according to data on his blog.
Permanent residents came in fourth out of five groups compared by the minister. This is despite a common perception that they are making the market more competitive, which pushes up the cash premiums on resale units.
These payments, called cash-over-valuations (COV), are often put down by buyers competing to secure a flat.
According to Mr Khaw's data, private property owners paid the most in the last quarter - a median figure of $45,000. Next, at $34,000, were second-time buyers who had sold their first flat. First-timers paid $33,000.
Permanent residents came in fourth, at $32,000, only just above single buyers, who paid a median COV of $31,000.
The minister released the data to flesh out his answer to a question in Parliament on Monday. Mr Zaqy Mohamad, an MP for Chua Chu Kang GRC, had asked whether the Housing Board would consider changing the rules so that only lower-income Singaporeans could buy resale flats with three rooms or fewer.
Mr Khaw wrote on his blog that the Government can track the median COVs paid by different groups. He emphasised the importance of being transparent.
'We monitor HDB resale prices, and publish them for information of potential buyers and sellers,' he said. 'Transparency helps make the market run better.'
His data did not convince all experts, however. Some said more information was needed before a meaningful analysis could be made.
For example, it would help to know the types of flats bought by the five groups, said SLP International's Mr Nicholas Mak. 'Private property owners could be buying larger flats such as five-roomers, and therefore the COV paid is higher in absolute terms,' he said. 'Likewise, singles, who generally buy smaller flats, could be paying less COV.'
He added that resale prices have been rising steadily since 2002, and that more information was needed to help explain which of the groups has been contributing to this increase. 'The latest data only shows one quarter, it may not be reflective of all the quarters over the past few years,' he added.
Others, however, said the figures were not far off the mark. Mr Eugene Lim, key executive officer of ERA Realty, called for more specific information, such as a breakdown by flat types. But he said the data does reflect the feeling on the ground. Private property owners who have sold up due to the current high prices, or gone through a lucrative collective sale, may be able to afford to pay COVs of up to $100,000, he said.
PropNex chief executive Mohamed Ismail noted that permanent residents generally do not have as much in their Central Provident Fund (CPF) accounts as citizens: 'Many permanent residents are not CPF-rich, while Singaporeans, be they singles or newly married couples, do qualify for grants if they live near their parents, for example.'