Flat valuations not done by HDB

Aug 21, 2008
Flat valuations not done by HDB

I REFER to the letter, 'Queries on HDB Valuation Scheme' published on
Aug 12.

The writer attributed the increase in resale prices of HDB flats to a
new method of valuation implemented by the HDB that incorporates the
cash-over-valuation (COV) amount. This is not correct, as there has
been no change in the method of valuation recently.

We wish to clarify that valuations of resale HDB flats are carried
out by professional private valuers, and not by HDB. The private
valuers on the panel are licensed by Inland Revenue Authority of
Singapore and are members of the Singapore Institute of Surveyors and
Valuers.

Buyers and sellers of resale flats are free to negotiate and agree
between themselves the selling prices. Information provided by HDB on
the median COV for each flat type in each town serves to help them
make an informed decision. As stated in HDB's press release of July
25, about 10 per cent of the resale transactions registered in the
second quarter this year were done at or below valuation, that is
with no COV.

Gopal Singh
Head (Valuation & Alienation)
Housing & Development Board