Cash-Over-Valuation, or COV for short as it is commonly known in
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, was a prevalent feature in the resale market for HDB (
Housing Development Board
The Housing & Development Board (HDB) (; ms, Lembaga Perumahan dan Pembangunan; ta, வீடமைப்பு வளர்ச்சிக் கழகம்) or often referred to as the Housing Board, is a statutory board under the M ...
) flats in Singapore for years until it was reviewed on 10 March 2014.
["A Stable Housing Market, Better Homes for All"](_blank)
HDB, retrieved 30 Oct 2015.
COV can be defined as the difference between the resale price and the market value of the flat (HDB) that is paid by the buyer upfront.
HDB, retrieved 30 Oct 2015.
Before 10 March 2014, a HDB resale flat begins with a professional valuation to discover the worth of the flat. The seller and buyer will negotiate about the amount to be paid above the valuation. This amount is the COV. The selling price will thus be the valuation plus COV.
If the flat is sold at valuation or below, no COV is paid.
However, COV has often been accused of causing volatility in the HDB resale flat market and sharp price hikes.
Currently, HDB will accept valuation requests only from buyers or their salespersons, after the buyers have been granted an Option to Purchase by the flat sellers.
See also
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Public housing in Singapore
Public housing in Singapore is subsidised, built and managed by the Government of Singapore. Starting in the 1930s, the country's first public housing was built by the Singapore Improvement Trust (SIT) in a similar fashion to contemporaneous B ...
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Public housing precincts in Singapore
Public housing in Singapore is subsidised, built and managed by the Government of Singapore. Starting in the 1930s, the country's first public housing was built by the Singapore Improvement Trust (SIT) in a similar fashion to contemporaneous ...
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Housing and Development Board
The Housing & Development Board (HDB) (; ms, Lembaga Perumahan dan Pembangunan; ta, வீடமைப்பு வளர்ச்சிக் கழகம்) or often referred to as the Housing Board, is a statutory board under the M ...
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New towns of Singapore
The new towns of Singapore are planned communities located across Singapore that are designed to be self contained. Designed to house up to 300,000 residents, these new towns contain areas zoned for housing, recreation and employment, and are c ...
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Executive Condominium
Public housing in Singapore is subsidised, built and managed by the Government of Singapore. Starting in the 1930s, the country's first public housing was built by the Singapore Improvement Trust (SIT) in a similar fashion to contemporaneous ...
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Housing and Urban Development Company (HUDC) Flats
Public housing in Singapore is subsidised, built and managed by the Government of Singapore. Starting in the 1930s, the country's first public housing was built by the Singapore Improvement Trust (SIT) in a similar fashion to contemporaneous ...
References
Public housing in Singapore
Real estate in Singapore