Cov - Where Is It Heading?

[LiZhi 0]

My in-laws recently bought an AMK 4-room, 11th floor, upgraded, good amenities nearby, windy... for S$423K. Valuation was S$400K, COV at S$23K. We're pretty pleased with the purchase. When we first saw the unit, it was valued at S$390K but the asking was S$60K COV (did not budge even with a S$50K offer).

So I guess in this case, while the valuation inched up slightly, we still "saved" by waiting a few months. Think the owner got down to earth after the new measures were announced and the offers of high COV disappeared, and his time was running out (as their new HDB flat was arriving soon).

Is it 4XX series flat? I think i had view it before.

COv is indeed down for most of the flat.

[therat 18]

My in-laws recently bought an AMK 4-room, 11th floor, upgraded, good amenities nearby, windy... for S$423K. Valuation was S$400K, COV at S$23K. We're pretty pleased with the purchase. When we first saw the unit, it was valued at S$390K but the asking was S$60K COV (did not budge even with a S$50K offer).

So I guess in this case, while the valuation inched up slightly, we still "saved" by waiting a few months. Think the owner got down to earth after the new measures were announced and the offers of high COV disappeared, and his time was running out (as their new HDB flat was arriving soon).

Guess the seller must be very regret for not taking up the 50K COV offer

$440K don't want.

In the end, sell at $423K. 17K lesser

[Sam Lee Poh Huat 0]

Seen more recent HDB classified adver's with low cov or cov neg lines. This is a contrast differences when only a few month back 100k COV is a norm. As what bepgof mentioned earlier, this comparative valuation method/Market data approach could be a double edge sword when people starts to sell below valuation. I guess those who bought their unit with 80-100k of COV wld be counting their "paper-loss" now or ponder what's their new unit next selling price to break even.

[Sam Lee Poh Huat 0]

About valuation...

Among the 3, Market data approach is most frequently used in residential value appraisal, there is one main drawback for this market data approach:

If seller is under certain pressure, or under auction, to sell house "cheap", the "cheap record" will be "integrated" in the future appraisal. This applies to when there is an econ downturn and sellers "desperate" for $, then valuation wil be down.

Pray hard LKY still healthy & LSL can steer the vehicle steadily slowly uphill, if downhill drive, make sure be the first to jump hor.

Hope this throws some light as to the "valuation up or down" doubt.

Both L's wld have problems captain our boat if the americans cant sort out their own backyard. Slow and steady as i hope so too and it wld be interesting how we combact inflation.

[rainforest 0]

Guess the seller must be very regret for not taking up the 50K COV offer

$440K don't want.

In the end, sell at $423K. 17K lesser

Buyers now realise that they have time on their side , they can take more time looking and comparing the asking COVs and valuation. As valuations may have shown some incremental increases in October/November , buyers now also take that into consideration and ultimately would offer much lower COVs. No need to rush , government is very adamant to prevent very hefty price increases. Just look at the HDB resale price index curve , it looks like mount merapi waiting to explode.

valuation of $400k for upgraded 4NG in AMK, that's pretty high now.

That said, those who need to buy for a roof over their heads will still buy...... Renting as the other option is not cheap either. A year's rental for a normal 4NG will set you back easily 24k.

[citygirl 1]

Is it 4XX series flat? I think i had view it before.

COv is indeed down for most of the flat.

Yep, it's in AMK Avenue 10, Blk 4XX. We saw quite a few flats in that area and ALL the owners were asking S$40-80K COV. And they would not even consider if you went in with an offer of S$30K COV as a start. Heard from our agent that the last offer was S$50K COV which they rejected.

But this was before the new measures were introduced. Shortly after, the owners were still asking for the same amount of COV, but they weren't that highhanded anymore, and actually considered each offer that came through. But my agent told me that while there were still some lookers, there weren't that many buyers and I think the owners were afraid it would go down further.

[citygirl 1]

valuation of $400k for upgraded 4NG in AMK, that's pretty high now.

That said, those who need to buy for a roof over their heads will still buy...... Renting as the other option is not cheap either. A year's rental for a normal 4NG will set you back easily 24k.

Yeah, I thought the valuation was high too, as it was S$390K when we first saw it. And for a 31-year-old flat requiring complete renovation. But the timing was just right for us as my in-laws needed to move out of their existing place by April next year so we couldn't delay it too long. Also, we really liked everything about the apartment - it's windy, has an unblocked view, high floor, nice unit number... we're pretty pleased with the purchase.

[Always Happy 0]

COV heading down for sure... met my agent yesterday and mentioned his last transaction COV was only 10k down frm 30k

Another agent also mentioned the same thing....last transaction 8K only.

[therat 18]

sell high, buy high

sell low, buy low.

COV down is only benefit those don't have any HDB on hand.

For those plan for upgrade, downgrade. COV can be good and bad news to them. depend which side of wall they stand

[forgotten 1]

For my area that's opposite a mrt station, cov drops from 50K to 40K for high floor units. Last week, a unit at 2nd floor was sold at 20K COV.

COV down + Valuation up = MBT can please both sellers and buyers.

[forgotten 1]

COV heading down for sure... met my agent yesterday and mentioned his last transaction COV was only 10k down frm 30k

Another agent also mentioned the same thing....last transaction 8K only.

Which town is it? I guess these two are units that're not near good schools or mrt stations right?

Edited November 11, 2010 by forgotten

[Always Happy 0]

its good news for 1st time buyers...its more affordable now with lesser cash.... valuation higher its ok, cos can use loan to pay off...

With this, resale prices should more or less stay intact......lesser COV, higher valuation

[therat 18]

its good news for 1st time buyers...its more affordable now with lesser cash.... valuation higher its ok, cos can use loan to pay off...

With this, resale prices should more or less stay intact......lesser COV, higher valuation

higher loan , mean more interest, more debt.

Take longer time to pay back.

work longer

[Always Happy 0]

Which town is it? I guess these two are units that're not near good schools or mrt stations right?

Yishun and jurong.... yah not so ideal locations....but they had high offers >20k before.

They must be banging their heads now

[Always Happy 0]

higher loan , mean more interest, more debt.

Take longer time to pay back.

work longer

haha, thats one choice they have to choose....

At least if they have a choice pay off faster in future if they have a windfall or better income.