http://www.todayonline.com/business/covs-fall-4-year-low-more-flats-sold-or-below-valuation
Cash-over-valuations (COVs) continued their downward spiral last month, falling to their lowest level in over four years.
The overall median COV dipped another S$2,000 from July to S$18,000 last month, the lowest level since July 2009 when the median was S$10,000, according to the Residential Property Flash Report issued by the Singapore Real Estate Exchange (SRX).
And more resale properties are changing hands with no COV at all: There were 56 zero-COV transactions last month, up from fewer than 20 in each of the first four months of the year, the SRX noted.
COVs have been trending downwards as the comprehensive round of property cooling measures introduced in January started taking effect. The trend is likely to continue as initiatives announced late last month to address concerns about the affordability of HDB flats also start to kick in.
“There is some pressure on COVs because demand from permanent residents, who can’t buy resale flats in the first three years of gaining their status, is expected to drop. And some flat owners looking to upgrade are now willing to let go of their flats at lower COVs,” said Savills Senior Director of Research and Consultancy Alan Cheong.
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