PAPee: We've No Control over PHole Prices. U Believe?

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<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>HDB flat valuations done by independent professionals
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to Tuesday's letter by Ms Tan Say Yin, 'HDB valuation hike may have led to higher resale prices'. Valuations are carried out by independent professional valuers, not HDB.
These valuers are members of the Singapore Institute of Surveyors and Valuers and are licensed by the Inland Revenue Authority of Singapore.
The valuation is based on actual transacted resale prices for similar flat types in the vicinity. This is a well-established industry practice and applies to both private and public housing valuation.
Resale prices are affected by many factors such as the overall economy, property market sentiment and flat attributes such as location, size and age.
To help flat buyers and sellers to make informed decisions, HDB provides the latest data on the HDB resale market online, including recent actual transacted resale prices and cash-over-valuation (COV) payments.
Ms Tan mentioned that the valuation of a four-room flat in Tampines is about $350,000, with $20,000 COV. According to HDB's public housing data, the median transacted price for a four-room flat in Tampines was $331,000 in the first quarter of this year and the median COV amount was $4,000.
About 38 per cent of all resale transactions in the same quarter were transacted either at or below valuation. We advise Ms Tan to shop around for a flat that meets her budget and preferences and negotiate for the best possible price.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director, Policy and Property
Housing & Development Board

 

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<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Clearing a misconception
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<!-- START OF : div id="storytext"--><!-- 4 or less paragraphs so show all paragraphs first before showing the media and bkstry and stuffs --><!-- story content : start --><!-- story content : start -->'It is incorrect to say that higher HDB valuations will lead to higher HDB resale prices.'
<!-- story content : start -->MS JANET HAN, Secretariat, Singapore Institute of Surveyors and Valuers: 'I refer to Tuesday's letter by Ms Tan Say Yin, 'HDB valuation hike may have led to higher resale prices'. We would like to explain the misconception about valuation raised in her letter. The purpose of valuation is to determine the market value of the property. A common method is to use the prevailing market prices of similar properties in the locality as a basis to determine the market value of the subject property. Valuation reflects the state of the market and the demand and supply situation. In recent months, the property market has somewhat stabilised because of the improved sentiment in the economy. The professional valuer therefore reflects the sentiment of the rising market in the valuation, but does not dictate the market prices agreed by both the buyer and seller. Hence, it is incorrect to say that higher HDB valuations will lead to higher HDB resale prices.'

 

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<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>There's a silver lining in higher prices
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to Tuesday's letter by Ms Tan Say Yin, 'HDB valuation hike may have led to higher resale prices'. The writer was incorrect to have suggested that the HDB raises or reduces the value of flats to suit sellers or buyers.
HDB valuations are conducted by independent valuers who determine the value based on the condition of and existing demand for the property.
The valuation also considers the willingness of buyers to pay cash over valuation. So, it is understandable that resale prices have risen about 30 per cent since the beginning of 2007, despite the recession.
In an uncertain economy, public housing is always a popular choice and the recent statistics demonstrate just that.
Looking at it positively, the price increase also helps many Singaporeans who bought their HDB flats during the previous peak of 1996; they would have been holding on to a negative asset since then as the resale price index (RPI) for 1996 was much higher than any since then, even that of 2007.
In fact, prices dropped from 1996 by about 30 per cent, bottoming out in 2002. It is only due to the recent eclipse of the 1996 RPI - by prices in the third quarter of last year - that these Singaporeans now own a positive asset.
Even with the current increase in HDB resale prices, first-time HDB owners have various options of buying resale flats with their Central Provident Fund money and enjoying up to $80,000 in government grants, or purchasing new subsidised flats via the Build-To-Order scheme.
Adam Tan

AKA "Ghost Writer"<!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start -->