Resale flat COVs fall to zero for first time since 2006

[SINGAPORE] For the first time in nearly a decade, the overall median cash-over-valuation (COV) for resale HDB flats hit ground zero last month, compared with $3,000 in January, as demand for resale public homes softened.

Almost two in five HDB deals closed below valuation, making up 37.3 per cent of HDB resale deals, up from 29.4 per cent in January, based on transaction records from agencies registered with the Singapore Real Estate Exchange (SRX).

Flash estimates by SRX also showed HDB resale prices marking a sharpest month-on-month fall of 1.8 per cent since prices began declining in April 2013, while resale volume dropped 20 per cent from a month ago to 734 deals.