The overall cash over valuation (COV) of HDB flats fell S$2,000 from December to hit S$3,000 in January, 2014. This makes it a new low since October 2006.
The median COV of $3,000 is on par with the previous low in June 2009 during the Global Financial Crisis.
Flash estimates by the Singapore Real Estate Exchange (SRX) on Thursday showed that eight out of 28 HDB towns saw zero or negative median COV.
Sengkang and Punggol led the drop, with more than half of their resale deals transacted below valuation. Bishan, Geylang, Jurong West, Sembawang, Woodlands and Yishun recorded zero overall median COV.
-Singapore's The Business Times (Buy today's Business Times to read more)
In October of 2012, when Cash Over Valuations (COVs) were hitting $30k, $40k, $50k.. etc, when property prices had zero chance of coming down, when there was only one way up due to unlimited QE from US and Japan, I already warned severely of a very large scale distribution of Singapore Property Stocks and that properties had peaked right on the backdrop of all these QEs which were reckoned to last indefinitely. Big Hands were selling on all the good news while the public were buying the good rosy news.
I also warned in advance during October 2012, just before property peaked, that we will see news of property prices come down towards end of 2013 or in 2014. It seemed impossible during that time. This is all happening now and these news of downtrend in property prices and plunge in COVs are all splashed on the news now: something warned ahead of time by me. Be on the opposite side of Don who is ahead of the pack and this is it: losing side.
Refer to past Singapore Property Market Posts here: