Home buyers in a 'seller's market'

Home buyers in a 'seller's market'

THE cash over valuation (COV) for their 11th-storey four-room flat in Punggol was $60,000.

Operations manager, Mr B. Wong, 32, and his wife would not be able to afford the COV had they not sold their previous flat, a third-storey four-room unit, also in Punggol.

Said Mr Wong: "We wouldn't be able to afford the COV if we didn't have money left from the proceeds of our flat.

"My wife just gave birth and we have a two-year-old child - it would be a huge stretch on our finances if we had to cough up that kind of cash.

"I guess I would have to borrow from relatives or choose not to buy the flat," he said.

Mr Wong got $39,000 in COV when he sold his flat.

Property agent Tia Tan told The New Paper that COV in Punggol and Pasir Ris have in recent months averaged $40,000 to $50,000.

"There are some sellers in Tampines who have been asking for $70,000 to $80,000 for COV, but these are flats near MRT stations and town amenities," Ms Tan said.

Yesterday in Parliament, National Development Minister Khaw Boon Wan acknowledged that home buyers are in a "seller's market", as they have to pay above the value assessed by professional valuers.

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