One segment is HDB second-timers who eschew a new unit
RESALE HDB flats are fast regaining interest among buyers, following several months of declining cash-over-valuation (COV) figures.
Notably, after falling more than 20 per cent in the first quarter, COV paid for HDB resale flats are starting to show signs of stabilising, enticing buyers back into the market, say consultants.
Prices for flats were higher during the second quarter with HDB's flash estimate of the resale price index (RPI) up 1.3 per cent quarter-on-quarter at a high of 194, from 191.6 in the period before.
Said Eugene Lim, key executive officer of ERA Realty Network: "The stronger price growth exhibited could be a result of decreasing COVs and increasing valuations in the market. Valuations are catching up with selling prices and median COVs have been reduced to $25,000 in June 2012. Reduction in COVs encourages buyers to commit to flat purchases resulting in rising resale prices."
Source: Business Times Website- PUBLISHED JULY 03, 2012