28-01-2011, 09:46 AM
HDB flat buyers, ponder price carefully
Letter from Lily Wong Deputy Director (Policy & Property), Housing & Development Board
05:55 AM Jan 28, 2011
I REFER to "These sellers are not serious" (Jan 5). We thank the writers for their letters.
HDB requires valuations for the purpose of granting a mortgage loan to flat buyers. As market values can change over time, sellers or buyers are allowed to request for more than one valuation at their own expense. The valuations are done by professional valuers from HDB's panel of approved valuation firms, using established principles and market practices. These valuers are licensed by the Inland Revenue Authority of Singapore, and are members of the Singapore Institute of Surveyors and Valuers.
On the other hand, HDB flat prices are negotiated and agreed upon between willing buyers and sellers. Cash-over-valuation (COV) can arise because the valuation is but one of many considerations that the buyer and seller take into account.
While flat sellers will naturally ask for as high a price as possible, flat buyers should consider carefully the price they should pay, especially in view of the ample supply of flats. HDB will offer 22,000 Build-To-Order (BTO) flats this year, if there is demand.
We wish to clarify that the various property market measures that Government has implemented are carefully calibrated to cool the market and bring about greater financial prudence. They will also help more first-time flat buyers own their homes.
After the Aug 30, 2010 measures were implemented, the pace of resale price increase slowed to 2.4 per cent in 4Q 2010, while resale volume declined by about 21 per cent, and median COV fell by 23 per cent to $23,000. HDB will continue to monitor the market closely to ensure that HDB flats remain affordable.
Letter from Lily Wong Deputy Director (Policy & Property), Housing & Development Board
05:55 AM Jan 28, 2011
I REFER to "These sellers are not serious" (Jan 5). We thank the writers for their letters.
HDB requires valuations for the purpose of granting a mortgage loan to flat buyers. As market values can change over time, sellers or buyers are allowed to request for more than one valuation at their own expense. The valuations are done by professional valuers from HDB's panel of approved valuation firms, using established principles and market practices. These valuers are licensed by the Inland Revenue Authority of Singapore, and are members of the Singapore Institute of Surveyors and Valuers.
On the other hand, HDB flat prices are negotiated and agreed upon between willing buyers and sellers. Cash-over-valuation (COV) can arise because the valuation is but one of many considerations that the buyer and seller take into account.
While flat sellers will naturally ask for as high a price as possible, flat buyers should consider carefully the price they should pay, especially in view of the ample supply of flats. HDB will offer 22,000 Build-To-Order (BTO) flats this year, if there is demand.
We wish to clarify that the various property market measures that Government has implemented are carefully calibrated to cool the market and bring about greater financial prudence. They will also help more first-time flat buyers own their homes.
After the Aug 30, 2010 measures were implemented, the pace of resale price increase slowed to 2.4 per cent in 4Q 2010, while resale volume declined by about 21 per cent, and median COV fell by 23 per cent to $23,000. HDB will continue to monitor the market closely to ensure that HDB flats remain affordable.