KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE

[chialc88]

Thanks...
I am still learning...

I will try my best to help you earn money...

Love Compassion


A Life not Reflected is a Life not Worth Living.

[yawnyawn]

Cash-over-valuation (COV) figures will no longer be part of the negotiating process for Housing Board resale deals, as buyers and sellers will now have to agree upon a price first before getting an official valuation, National Development Minister Khaw Boon Wan said in Parliament on Monday.

Previously, sellers usually got valuations first, and then negotiated with buyers over how much more - or less - should be paid. But negotiations should "rightly" be based on recent transaction prices, not the additional cash premium or COV, said Mr Khaw.

So from 5 pm on Monday, a price must first be agreed upon and the Option to Purchase (OTP) granted, before buyers can request a valuation from the HDB. HDB will no longer give valuations to sellers, although existing OTPs and valuations will still be honoured until their expiry.

This move will "restore the original intention of valuation, which is to help buyers get a housing loan," said Mr Khaw.

To help buyers and sellers in their negotiations, HDB will publish daily figures on recent resale transactions starting Monday, rather than fortnightly as was previously the case. "This way, buyers and sellers can refer to latest market information during their negotiations," said Mr Khaw.

"Negotiating on price rather than COV will take some getting used to," he added. "However, it is a useful move for long-term market stability."

http://www.straitstimes.com/breaking-new...ale-deals-

A good time to remove COV when buyers are buying below valuation..

[WolfT]

News: OTP needed before request for HDB Valuation report.

From 5pm onward, Don't need to do valuation.

Take note: You need to have a buyer first before you can do a valuation report!

Hi - this is news to me. Care to tell the source? I can imagine that this extremely popular measures will result in a raft potential buyers rushing to hand in a $1k option fee to find out what the valuation of their target flats will be.

It is true...

今起买卖方同意转售组屋价后 才可索取估价
2014年03月10日 1636
|



（联合早报网讯）政府效仿私宅市场的做法，调整转售组屋索取估价的程序，屋主将不能向建屋局索取估价，而是要等买卖双方签署选购权书后，由买家作出估价索取的申请。

这项调整今天下午5时起生效。这意味着未来的转售组屋交易中，买卖双方不能像以往那样，通过商议组屋的现金溢价（Cash Over Valuation，简称COV），决定最后的转售价格。

国家发展部长许文远今天在政府国会拨款委员会辩论该部门的预算开支时宣布这项调整。他指出，这么做是为了让转售组屋售价的商议更加合理化，恢复估价的初衷，以让市场在长期上更加稳定。

配合这项调整的生效，建屋局将在每天傍晚公布已经登记的转售组屋交易价，让买卖双方在议价前，获得最新的市场信息。（本报记者：杨丹旭）

（联合早报网编辑：孙伟伦 )
- See more at: http://www.zaobao.com.sg/realtime/singap...XPKsE.dpuf

[bteo88]

Thanks...
I am still learning...

I will try my best to help you earn money...

Love Compassion


A Life not Reflected is a Life not Worth Living.

[CityFarmer]

Since it is more relevant here, so I merge the post into this thread.

Cash-over-valuation (COV) figures will no longer be part of the negotiating process for Housing Board resale deals, as buyers and sellers will now have to agree upon a price first before getting an official valuation, National Development Minister Khaw Boon Wan said in Parliament on Monday.

Previously, sellers usually got valuations first, and then negotiated with buyers over how much more - or less - should be paid. But negotiations should "rightly" be based on recent transaction prices, not the additional cash premium or COV, said Mr Khaw.

So from 5 pm on Monday, a price must first be agreed upon and the Option to Purchase (OTP) granted, before buyers can request a valuation from the HDB. HDB will no longer give valuations to sellers, although existing OTPs and valuations will still be honoured until their expiry.

This move will "restore the original intention of valuation, which is to help buyers get a housing loan," said Mr Khaw.

To help buyers and sellers in their negotiations, HDB will publish daily figures on recent resale transactions starting Monday, rather than fortnightly as was previously the case. "This way, buyers and sellers can refer to latest market information during their negotiations," said Mr Khaw.

"Negotiating on price rather than COV will take some getting used to," he added. "However, it is a useful move for long-term market stability."

http://www.straitstimes.com/breaking-new...ale-deals-

A good time to remove COV when buyers are buying below valuation..

[yawnyawn]

Since it is more relevant here, so I merge the post into this thread.

Cash-over-valuation (COV) figures will no longer be part of the negotiating process for Housing Board resale deals, as buyers and sellers will now have to agree upon a price first before getting an official valuation, National Development Minister Khaw Boon Wan said in Parliament on Monday.

Previously, sellers usually got valuations first, and then negotiated with buyers over how much more - or less - should be paid. But negotiations should "rightly" be based on recent transaction prices, not the additional cash premium or COV, said Mr Khaw.

So from 5 pm on Monday, a price must first be agreed upon and the Option to Purchase (OTP) granted, before buyers can request a valuation from the HDB. HDB will no longer give valuations to sellers, although existing OTPs and valuations will still be honoured until their expiry.

This move will "restore the original intention of valuation, which is to help buyers get a housing loan," said Mr Khaw.

To help buyers and sellers in their negotiations, HDB will publish daily figures on recent resale transactions starting Monday, rather than fortnightly as was previously the case. "This way, buyers and sellers can refer to latest market information during their negotiations," said Mr Khaw.

"Negotiating on price rather than COV will take some getting used to," he added. "However, it is a useful move for long-term market stability."

http://www.straitstimes.com/breaking-new...ale-deals-

A good time to remove COV when buyers are buying below valuation..

Thanks mod!

I have a question. Under the new regulation, If i(buyer) offer 500k for a resale flat and valuation comes up to 450k. Do I now pay the 20% downpayment(100k) in 5% cash and 15% cpf/cash?

Or the downpayment is still 20% of 450k plus 50k(cov) in cash?

[lvpierre]

Since it is more relevant here, so I merge the post into this thread.

Cash-over-valuation (COV) figures will no longer be part of the negotiating process for Housing Board resale deals, as buyers and sellers will now have to agree upon a price first before getting an official valuation, National Development Minister Khaw Boon Wan said in Parliament on Monday.

Previously, sellers usually got valuations first, and then negotiated with buyers over how much more - or less - should be paid. But negotiations should "rightly" be based on recent transaction prices, not the additional cash premium or COV, said Mr Khaw.

So from 5 pm on Monday, a price must first be agreed upon and the Option to Purchase (OTP) granted, before buyers can request a valuation from the HDB. HDB will no longer give valuations to sellers, although existing OTPs and valuations will still be honoured until their expiry.

This move will "restore the original intention of valuation, which is to help buyers get a housing loan," said Mr Khaw.

To help buyers and sellers in their negotiations, HDB will publish daily figures on recent resale transactions starting Monday, rather than fortnightly as was previously the case. "This way, buyers and sellers can refer to latest market information during their negotiations," said Mr Khaw.

"Negotiating on price rather than COV will take some getting used to," he added. "However, it is a useful move for long-term market stability."

http://www.straitstimes.com/breaking-new...ale-deals-

A good time to remove COV when buyers are buying below valuation..

Thanks mod!

I have a question. Under the new regulation, If i(buyer) offer 500k for a resale flat and valuation comes up to 450k. Do I now pay the 20% downpayment(100k) in 5% cash and 15% cpf/cash?

Or the downpayment is still 20% of 450k plus 50k(cov) in cash?

You may have difficulties getting the loan and may have to cough out the 50k in cash. Why would you still buy? Most buyers would probably forfeit the option fee.

[lvpierre]

I would think this move would lower the expectation of both buyers and sellers. They would lower the price to negotiate in case can't afford and waste time and fees ( option fee etc). Likely to see more below valuation transactions for HDB.

[chialc88]

lv,
I share your sentiment...
prices is taking too long to optimised..
patient is running out...
Our main aim is to increase transparency (by publishing daily transaction price Errr OTP price lar)

Every1 talk about market price (instead of COV above or below valuation)

At current situation, price have to drop ... towards optimised point.

Love Compassion



A Life not Reflected is a Life not Worth Living.

[Londonproperty]

Need SG property prices to come down mah.