HDB COV hits zero for first time in 9 years

[Darryn]

today paper report that the first DBSS are coming onto market -

 

Some people asking for $800k for 5 room - crazeee ah!!

 

Just standard flat with supposed nice reno.

 

I heard report that one five room in Punggol go for $100k below valuation

[Wyfitms]

today paper report that the first DBSS are coming onto market -

 

Some people asking for $800k for 5 room - crazeee ah!!

 

Just standard flat with supposed nice reno.

 

I heard report that one five room in Punggol go for $100k below valuation

 

first DBSS is in Boon Keng? If so, then i wont be surprised as people consider it to be "city fringe"

 

If i am not wrong, older flats in bishan 5rm are transacting at $700+K in the last few months

[13177]

First DBSS from boon keng? Thought i saw one 3 room flat in clementi also DBSS project asking for $400k plus!

[Wyfitms]

First DBSS from boon keng? Thought i saw one 3 room flat in clementi also DBSS project asking for $400k plus!

 

not sure which is the first project

 

only thing i know about DBSS is that it is an epic failure policy and only good thing is the govt pulled the plug before more singaporeans are cheated

[Mustank]

today paper report that the first DBSS are coming onto market -

 

Some people asking for $800k for 5 room - crazeee ah!!

 

Just standard flat with supposed nice reno.

 

I heard report that one five room in Punggol go for $100k below valuation

 

i heard nobody buy

[Throttle2]

At the end of the day, HDB not scared lah..... Its a "protected" segment.

 

I mean how many HDBs are we allowed to buy, right?

 

Speculative forces are minimal compared to private market.

 

Just keep it clean and neat, connect with the community, stay happy, enjoy the subsidies. At the end of 99yrs, ashes to ashes .

 

Life is too short and already complicated enough.

 

Its so sad that people are "forced" to do all sorts of funny things to get ahead.

Everything is like a gamble, buy HDb also gamble, buy Car also gamble, go primary school also like a gamble.

 

 

Sigh....

[13177]

 

not sure which is the first project

 

only thing i know about DBSS is that it is an epic failure policy and only good thing is the govt pulled the plug before more singaporeans are cheated

Why DBSS is an failure policy?

[Wyfitms]

Why DBSS is an failure policy?

 

1. i'm skeptical about MBT's intention when he first introduced the scheme. Who is he trying to benefit?

 

2. allowing developers to bid for the land = all profits are fully creamed off. Nothing left for the buyers. KBW woke up when tampines DBSS went up to $900K. His lieutenants obviously did not warn him earlier when Sim Lian bidded $261 psf for the land. Too happy collecting the money.

 

3. i might be wrong, but DBSS to me is still HDB. After 5 years MOP, i would ask what is the difference between the DBSS and the next door BTO? Bettter design? Unlikely, judging from some of the latest BTOs i have seen. Better fittings? Yes, but are they worth $100-200K premium? or just $20K? Any swimming pool? Clubhouse? Security guard? Nope.

 

In other words, these buyers have bought a HDB flat without the chance to bite at the cherry cos they have given up their subsidy to the developers.

 

forgot to add: by creating a new sub-market between HDB and EC, they are causing further housing price inflation as each sub-market commands its own price levels.

 

Thank You MBT!

Edited March 10, 2014 by Wyfitms

[13177]

Actually i also thinking why are there so many types of HDB flat being offered? Like HDB standard, HDB premium, DBSS and EC? To me there are still a HDB flat.

[Myxilplix]

Its so sad that people are "forced" to do all sorts of funny things to get ahead.

Everything is like a gamble, buy HDb also gamble, buy Car also gamble, go primary school also like a gamble.

 

 

It's not about being forced lah, it's just what I can the Singapore condition (much like the human condition).

 

So many people seem to have this property fever. Their minds are constantly working to find ways and means of using the system, particularly the public housing system, to their advantage (and trying to sound like experts in the process).

 

When I was looking for my little pigeonhole HDB last year, I had a rough budget on how much I was willing to spend/locations I would consider/size of flat and why I was buying a place.

 

I got all kinds of "advice" on how to "maximise my investment" and these were from acquaintances, not my property agent.

[Darryn]

I think the biggest "draw" was the chance to have the house renovated using CPF money - the place could be delivered in "move in condition" and it was paid for out of CPF...

 

As opposed to "normal" HDB where you still had to pay for reno -

 

But of course, 5 years later, there is no difference between a DBSS and a BTO that has been renovated - so they are (relatively) less profit. But people still dream and think that they are worth a premium now.

 

 

1. i'm skeptical about MBT's intention when he first introduced the scheme. Who is he trying to benefit?

 

2. allowing developers to bid for the land = all profits are fully creamed off. Nothing left for the buyers. KBW woke up when tampines DBSS went up to $900K. His lieutenants obviously did not warn him earlier when Sim Lian bidded $261 psf for the land. Too happy collecting the money.

 

3. i might be wrong, but DBSS to me is still HDB. After 5 years MOP, i would ask what is the difference between the DBSS and the next door BTO? Bettter design? Unlikely, judging from some of the latest BTOs i have seen. Better fittings? Yes, but are they worth $100-200K premium? or just $20K? Any swimming pool? Clubhouse? Security guard? Nope.

 

In other words, these buyers have bought a HDB flat without the chance to bite at the cherry cos they have given up their subsidy to the developers.

 

forgot to add: by creating a new sub-market between HDB and EC, they are causing further housing price inflation as each sub-market commands its own price levels.

 

Thank You MBT!

 

[Wyfitms]

I think the biggest "draw" was the chance to have the house renovated using CPF money - the place could be delivered in "move in condition" and it was paid for out of CPF...

 

As opposed to "normal" HDB where you still had to pay for reno -

 

But of course, 5 years later, there is no difference between a DBSS and a BTO that has been renovated - so they are (relatively) less profit. But people still dream and think that they are worth a premium now.

 

 

 

i think the first batch could possibly fetch $30 to $50K premium over same place resale flats that are relatively new, for now.

 

This premium should reduce as time goes by.

 

And based on the current direction of HDB price, the next batch that finishes the MOP will most likely see zero premium

 

It's not about being forced lah, it's just what I can the Singapore condition (much like the human condition).

 

So many people seem to have this property fever. Their minds are constantly working to find ways and means of using the system, particularly the public housing system, to their advantage (and trying to sound like experts in the process).

 

When I was looking for my little pigeonhole HDB last year, I had a rough budget on how much I was willing to spend/locations I would consider/size of flat and why I was buying a place.

 

I got all kinds of "advice" on how to "maximise my investment" and these were from acquaintances, not my property agent.

 

maximize investment? Era of gaming the system was gone several years back..

 

when i bought mine 5 yrs ago, i was looking how to minimize my loss instead (i was expecting a major correction)

[Myxilplix]

maximize investment? Era of gaming the system was gone several years back..

 

when i bought mine 5 yrs ago, i was looking how to minimize my loss instead (i was expecting a major correction)

 

I dunno lah, I am not interested in gaming the system or maximising anything. I just wanted a small place to stay on my own that was within my budget.

 

ANYHOW, LATEST NEWS! Khaw u-turns on his previous statements. Sorry hor I dun subscribe so no full article.

 

http://www.straitstimes.com/breaking-news/singapore/story/singapore-budget-2014-agree-price-then-get-valuation-hdb-resale-deals-

 

---Quote---

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.

---Unquote---

 

Teeheehee, one move and the whole system terbalik again

Edited March 10, 2014 by Myxilplix

[Wyfitms]

well done KBW

 

COV served as a pseudo ceiling as it could be be financed, and now that it is lifted, and full financing onboard, expect HDB prices to move upwards!

 

seriously.. who are these scholars who write such policies?? Are they all fresh grads from MIT/ Cornell??

 

Where in the world do people buy real estate without valuation? And what the heck is the point of a valuation report when the price is agreed upon?

 

And since when is the original intention of a valuation report used to get housing loan only?? it's supposed to give both parties a sense of what is the likely open market value!

 

*faintz*

 

 

 

 

I dunno lah, I am not interested in gaming the system or maximising anything. I just wanted a small place to stay on my own that was within my budget.

 

ANYHOW, LATEST NEWS! Khaw u-turns on his previous statements. Sorry hor I dun subscribe so no full article.

 

http://www.straitstimes.com/breaking-news/singapore/story/singapore-budget-2014-agree-price-then-get-valuation-hdb-resale-deals-

 

---Quote---

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.

---Unquote---

 

Teeheehee, one move and the whole system terbalik again

 

Edited March 10, 2014 by Wyfitms

[Darryn]

Hmmm.....

 

By definition, isn't a valuation simply the price people are willing to pay?

 

So under this system what will happen?

 

 

well done KBW

 

COV served as a pseudo ceiling as it could be be financed, and now that it is lifted, and full financing onboard, expect HDB prices to move upwards!

 

seriously.. who are these scholars who write such policies?? Are they all fresh grads from MIT/ Cornell??

 

Where in the world do people buy real estate without valuation? And what the heck is the point of a valuation report when the price is agreed upon?

 

And since when is the original intention of a valuation report used to get housing loan only?? it's supposed to give both parties a sense of what is the likely open market value!

 

*faintz*

 

 

 

 

 

[Wyfitms]

Hmmm.....

 

By definition, isn't a valuation simply the price people are willing to pay?

 

So under this system what will happen?

 

 

 

 

valuation is supposed to be the estimate of selling price of a property based on arms length transaction.

 

however, that is just an estimate, and due to various factors including the intrinsic worth to individuals differ and hence you will find people paying less or more than valuation.

 

what will happen is anyone's guess, will be interesting to see how it pans out. But i would think the wiser move would be to let the market find its equilibrium given the influx of supply over the last few years instead of implementing such a radical idea

[Tiger1]

Why DBSS is an failure policy?

When a brand new HDB FLAT cost $800k, it is not a failure in the system?

 

To me there are only 2 types of housing, Public housing and Private housing. Public housings are supposed to be affordable and for own stay. 800k? Plsssss. Give me just 4 walls and 1 door and i will happily pay you a real HDB price. Dont need to package it nicely with nice nice names such as dbss or what nonsense names.

 

Hhd under that inhumane mbt has lost its original well intended mission of providing real affordable public housings to singaporeans. Even with his kicked out, my blood still boil everytime when i see him in tv on national events. Kbw is just trying to clean up his mess and steering the boat back to its original path. Is he doing a good job so far? I think yes on a wider picture. Do i like him? Errrrr.nope.

[Donut]

well done KBW

 

COV served as a pseudo ceiling as it could be be financed, and now that it is lifted, and full financing onboard, expect HDB prices to move upwards!

 

seriously.. who are these scholars who write such policies?? Are they all fresh grads from MIT/ Cornell??

 

Where in the world do people buy real estate without valuation? And what the heck is the point of a valuation report when the price is agreed upon?

 

And since when is the original intention of a valuation report used to get housing loan only?? it's supposed to give both parties a sense of what is the likely open market value!

 

*faintz*

 

 

 

 

i still cannot understand the full implication of this new rule. To me, prices of everything need to have some form of basis. Our car's price is based on PARF, OMV, COE etc. This forms the basis of the car's selling price.

 

KBW is trying to tackle the COV problem. He's trying to take away our mindset of COV on flats. Maybe he's thinking of helping the lower income families who really cannot afford the cash COV to purchase a flat. If he's coming from this angle, I got to agree with him. Many buyers spoilt the market by offering 100k or 50k over COV. This kills alot of other potential buyers. It just takes one cash-rich buyer to spoilt the market. It's unfair to the large community of buyers

 

Of coz, there are alot of argument about it.