WE REFER to the letter 'Not good idea to value flat higher' (my paper, May 13).
Valuations of resale HDB flats are done by a panel of qualified and licensed professional valuers according to established principles and market practices.
They are to facilitate the process for buyers of HDB resale flats applying for a mortgage loan or withdrawing their CPF savings for the purchase.
As the transacted prices of resale HDB flats have increased in 2007, the market valuations of these flats would also rise in tandem with the upward trend.
On the other hand, the prices of individual resale flats, including any cash-above-valuation, are negotiated between willing buyers and sellers. They may take into account many factors, and not just the valuation alone.
Whether in a rising or falling market, there will be flats that are transacted at, below or above the market valuation, depending on the attributes of the flats and market sentiments.
Mr Loh Swee Heng
Deputy Director (Resale)
Housing & Development Board
