COV for HDB flats drops to $15,000; lowest since July 2009

PHOTO: COV for HDB flats drops to $15,000; lowest since July 2009

SINGAPORE - Cash premiums for Housing Board (HDB) flats fell $3,000 to a new low of $15,000 in September, showed monthly and third quarter flash estimates released by the Singapore Real Estate Exchange on Thursday.

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Here is the full press release from Singapore Real Estate Exchange (SRX):

Flash Report for September & 2013 Q3 Flash Report

September 2013 Non-landed Private Residential Resales:

1. Based on the SRX Property Index (SPI), resale prices of non-landed private residential units slipped by 1.6 per cent in September 2013 from August.

2. The overall price drop last month was led by a 3.5 per cent drop in the Rest of Central Region (RCR), followed by Outside Central Region's (OCR) 1.5 per cent drop. In contrast, Core Central Region's (CCR) resale prices rebounded by 2.5 per cent from August after 2 consecutive monthly drop in July and August.

3. An estimated 462 non-landed homes were resold in September, improving slightly from August's 447 units. This brought 2013Q3's total resale volume to 1,478 units, representing a 57 per cent drop in resale volume compared to the same quarter of last year.

Non-landed Private Residential Rental:

4. Based on the non-landed residential rental SPI sub-index, overall rental prices for non-landed private residential in September slipped by 1.1 per cent from August, registering the biggest monthly rental price drop since the start of this year.

5. On a regional basis, rental prices in all three regions trended downwards, led by CCR's 1.9 per cent drop.

7. On average, gross rental yield of non-landed residential units in different regions ranged between 3.1 per cent and 3.9 per cent in 2013Q3, down from the yield band of 3.3 per cent to 4.2 per cent seen in the same quarter of last year.

HDB Resale and Rental:

8. Overall HDB Cash-Over-Valuation (COV) dropped by another $3,000 in September to reach $15,000 - the lowest since Jul 2009, when the overall COV was $10,000.

9. Despite the drop in COV, overall HDB resale prices remained relatively flat with a small increase of 0.2 per cent from August, after 4 consecutive drops in the preceding months.

10. An estimated 1,164 HDB flats were sold in the resale market in September, slightly less than the 1,193 flats transacted in August.

11. This brings the whole Q3's HDB resale volume to 3,661 units, a 33 per cent drop compared to Q3 of last year.

12. An estimated 4,459 HDB flats were leased out in 2013Q3, 1 per cent more than the 4,406 leases signed in the same quarter of last year.