1 in 5 HDB deals closed below valuation in December

See which HDB towns recorded lowest valuations.

According to transaction records from Singapore Real Estate Exchange (SRX) agencies, 20.2% of HDB resale deals closed below valuation in December. In comparison, 13.0% closed below valuation in November. December posted the highest ratio of negative COV transactions since the financial crisis in May 2009, when the ratio was 25.9%.

Five HDB towns - the outskirts of Woodlands, Sengkang, Punggol, Choa Chu Kang, and Sembawang - saw more than 30% of all transactions closed with negative-COVs. More than half of all HDB transactions in Seng Kang and Punggol closed below valuation.

SRX's Flash Report also notes that overall HDB Cash-Over-Valuation (COV) in December 2013 dropped $3,000 from November to register a new low of $5,000. This is the lowest COV since June 2009, when COV dropped to a low of $3,000 during the Global Financial Crisis.

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