Saturday, July 18, 2009

HDB flat valuations done by independent professionals

I REFER to Tuesday's letter by Ms Tan Say Yin, 'HDB valuation hike may have led to higher resale prices'. Valuations are carried out by independent professional valuers, not HDB.

These valuers are members of the Singapore Institute of Surveyors and Valuers and are licensed by the Inland Revenue Authority of Singapore.

The valuation is based on actual transacted resale prices for similar flat types in the vicinity. This is a well-established industry practice and applies to both private and public housing valuation.

Resale prices are affected by many factors such as the overall economy, property market sentiment and flat attributes such as location, size and age.

To help flat buyers and sellers to make informed decisions, HDB provides the latest data on the HDB resale market online, including recent actual transacted resale prices and cash-over-valuation (COV) payments.

Ms Tan mentioned that the valuation of a four-room flat in Tampines is about $350,000, with $20,000 COV. According to HDB's public housing data, the median transacted price for a four-room flat in Tampines was $331,000 in the first quarter of this year and the median COV amount was $4,000.

About 38 per cent of all resale transactions in the same quarter were transacted either at or below valuation. We advise Ms Tan to shop around for a flat that meets her budget and preferences and negotiate for the best possible price.

Chan-Wong Jee Choo Lily (Mrs) Deputy Director, Policy and Property Housing & Development Board

Source: Straits Times, 18 July 2009

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