'COMBINATION' OF FACTORS BEHIND TREND
A total of 24 estates had units that were sold with a COV below valuation last month.
Sengkang and Punggol led the drop in the cash-over-valuation, with more than half of their resale deals transacted below valuation.
Jurong West, located at the outskirts, had 23 units sold below valuation last month, the most number of cases in Singapore.
Sengkang was second, with 16 units, according to figures from the Singapore Real Estate Exchange.
A combination of factors has led to the trend of low COV, said property analyst Nicholas Mak.
They are the surge of supply of build-to-order (BTO) flats as well as resale flats from sellers who are collecting the keys to a new property, and the latest cooling measure - in which resale flat buyers who take HDB loans can now only use up to 30 per cent of their gross monthly income to repay their loans, down from 35 per cent - that curbed the borrowing power of buyers.
PropNex property agent Alvin Koh, who handled a recent case of a Sengkang flat that sold for $10,000 below valuation, said that some sellers might have no choice but to sell their current flats because they are getting the keys to their new BTO flats.
Crest One Realty property agent Robin Goh said that some of these sellers might have been forced to sell off their flats to settle debts.
"Honestly, who would want to sell their flats now unless they are really desperate? It's really market mati (Malay for die) now."
Honestly, who would want to sell their flats now unless they are really desperate? It's really market mati (Malay for die) now.
- Crest One Realty property agent Robin Goh