HDB sellers lower cash premiums

The recently implemented property cooling measures have resulted in a lower number of resale apartment sellers asking for high premiums.

Property agents have seen many owners lowering their cash-over-valuation (COV) quotes, particularly when they asked for over $60,000 originally, while other owners are demanding less to draw buyers.

Mr. Albert Lu, managing director of C&H Realty, noticed that some clients have cut back their asking COVs by up to $10,000. Some clients tend to be serious sellers, especially those who have already acquired a new house and need to move, said Mr. Lu.

There are also cases that those who reside near MRT stations were using the location to pull in high cash premiums, at around $50,000 to $60,000. Now that the property market has slacked slightly, “they are more willing to drop the COVs,” added Mr. Lu.

Mr. Jeffrey Hong, executive director at HSR observed that apartment owners asking for “ridiculously high” COVs have become more practical. These properties seem to be in coveted locations such as Marine Parade, with asking COVs of between $60,000 and $80,000.

Mr. Hong, however, stressed that those sellers who were asking for reasonable levels of COV at $30,000 to $40,000 have kept on their demands.

According to Mr. Chris Koh, director of Dennis Wee Group, sellers have become realistic since they realise that customers are not rushing into the market.

“We are educating owners: if the price offered is good, take it,” said Mr. Koh. “If you call for such a high COV, nobody will even want to come and look (at your flat).”