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In Jan 2012, I wrote an article “How much Cash-Over-Valuation should you pay for your HDB flat?” I explained the worrying “greater fool” situation of HDB buyers trying to outbid each other by paying a higher cash over valuation (COV).

In Apr this year, I told you HDB is going to “show hand” by just looking at the demand and supply of the market.

If you read today’s paper, it is reported that “Overall Housing Board cash-over-valuation (COV) continued a steady decline in July to $20,000, its lowest point since January 2011.

Overall HDB COV, or cash premiums over a flat’s valuation, has also dropped 43 per cent in the half a year since it peaked at $35,000 in January 2013. Overall HDB resale prices also dropped for the third consecutive month, slipping 0.5 per cent.

Who says property price will never come down? The Japanese have said, the Hong Kongese have said, but a simple chart will say it all

Japan-Real-Estate-Prices

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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