COV of flats in popular estates still high in Q4 2012

The cash premiums for HDB resale flats continued to hover in the high range in the fourth quarter of 2012 in some popular estates. 

Data released by the Housing and Development Board on Friday showed that the median Cash-Over-Valuation (COV) for a three-room flat in Queenstown stood at $30,000 while that of a four-room flat hit $65,900. 

In Bishan, the median COV for a four-room flat touched $50,000 and that of an executive flat was $70,000. 

For Toa Payoh, the median COV for a three-room flat was $35,000, while that of a four-room flat was $67,800, and that of a five-room flat was $69,000. 

COV premiums are what buyers pay in cash - over and above the valuation of a flat. 

Mr Eugene Lim, Key Executive Officer of ERA Realty Network, noted that COVs have been steadily rising. 

He said for the fourth quarter, median COV is $33,500. 

The largest increase came from executive flats - of 25 per cent - as demand is higher than supply.