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