This SAME AH neh woman find trouble again!!!

[Maverick01]

Swetha_Agarwal

September 05, 2009 Saturday, 10:53 AM

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To those who oppose COV and want a ban on it, may I ask you, if you sell your flat now will you sett it at valuation price? Are you greedy or not? Advising others is easy but practising is difficult.

 

[Gillette]

Swetha is absolutely right. Those who oppose COV are missing the crux of the issue. The issue is insufficient supply of public housing, and high demand from PRs.

Price is set by willing buyer and seller. Valuation is just the valuer’s opinion of the price of the property. One can find 3 different valuers and pick the report with the highest value to show to the buyers. Or better yet, a seller can simply tell the valuer to prepare a report with the price he intends to sell. So why should any one give a damn to the valuer’s opinion other than which banks will only finance up to 80% of that?

Now if COV is banned, should price below valuation (“PBV”) also be banned? Some 10 years ago during the Asian Financial Crisis, it is usual for properties to be sold way below valuation. Should PBV also be banned to prevent the buyer from taking advantage of the seller in hardship and the seller from losing wealth? How about extending this COV ban to private residential properties, commercial/retail/industrial/hotel properties?

The point is HDB needs to increase supply, and buying restrictions must be put in place for PRs. Singaporeans should put pressure on HDB / govt instead of sellers.