COVs take a dip as housing transactions drop

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Cash premiums that buyers pay for Housing Board flats have fallen in the first three months of this year, on the back of a lower volume of transactions.

The largest drop came from areas such as Punggol, Tampines and Pasir Ris, where the premiums went down by 21 per cent, 13 per cent and 12 per cent respectively.

According to data from Singapore Real Estate Exchange (SRX), the median overall cash-over-valuation (COV) for the first quarter of this year was $33,000, down from $34,000 in the preceding three months.

However, overall median prices still rose from $455,000 to $457,000 during the same period.

SRX also recorded just 3,186 HDB resale transactions in the first quarter of this year, the lowest quarterly figure since 2009.

Property analysts say these numbers are a result of a slowdown in the market, as buyers come to grips with cooling measures that restrict their purchases, and take stock of the new as well as balance flats on offer.

But not all towns saw weakening cash premiums.

Popular spots Ang Mo Kio and Kallang/Whampoa both saw a rise in overall COV of about 8 per cent.

International Property Advisor chief executive Ku Swee Yong said demand is typically strong for such areas, which do not often see new launches.