COVs for resale flats rising again

For transactions in the last two months, the overall median cash-over-valuation (COV) paid was $30,000. -AsiaOne  SINGAPORE - Cash premiums for resale flats are slowly rising, after it fell in the first two quarters this year from Q4 last year, The Straits Times reported. Data from property firms for the last two months revealed that for latest transactions, the overall median cash-over-valuation (COV) paid was $30,000. This is up from the average of $26,000 paid in the first two quarters this year, but still lower than the $34,000 average in the fourth quarter of last year. But recent transactions have also seen astounding figures. A five-room flat in Holland Drive was sold last month with a premium of $135,000, while an executive apartment in Woodlands transacted at $130,000 above-valuation. But according to ERA Realty key executive officer Eugene Lim, these are exceptions to the rule, and tend to occur in mature towns where there are fewer new flats. Government had promised about 25,000 new flats this year, and at least 20,000 next year. candicec@sph.com.sg Sat, Sep 01, 2012 Source: AsiaOne