Overall cash-over-valuation (COV) for resale Housing and Development (HDB) flats maintained its steady ascent to reach $33,000 last month, a 10% increase from the third quarter and just $3,000 short of the record $36,000 COV in 2007.
Experts pointed out that the rising trend of the COV may have pushed up demand for executive condominiums (ECs) and private condominiums. Higher COVs allow HDB upgraders to sell off their HDB flats at a higher price, giving them the opportunity to upgrade to condominiums.
Due to the higher COV, the HDB median resale price is now at a new high of $455,000, a 1.1% increase from the $450,000 recorded in the third quarter this year.
Despite making a tidy sum from the sale of their homes, most HDB upgraders could still expect to pay to upgrade. For example, a 4-room HDB flat with a higher COV is still likely to sell below the $1 million mark, at around $700,000, while a 3-bedroom private condominium unit is likely to cost above $1 million.
The resale price for non-landed private residential units has increased as well, rising 4.1% last month to reach $1209 psf. According to data from the Singapore Real Estate Exchange (SRX), the price increase can be observed across all regions, even though the sharpest increase is in the city fringe region, at 4.5%. The suburban areas saw a rise of 4.2% while the core central region recorded 1.8%.