Your search results

Why Cash Over Valuation (COV) Doesn’t Matter Anymore

Posted by Jayson Ang on September 20, 2025

| 0

TLDR

HDB’s old strategy of hiding Cash Over Valuation (COV) data isn’t cooling Singapore’s resale flat market anymore. Prices keep breaking records, driven by cash-rich right-sizers from the private market and sky-high private property prices making million-dollar HDBs look reasonable. Without public COV data, buyers only see final transacted prices, pushing future prices even higher. Public perception is key—if $2 million HDB deals become common, HDB’s stance may backfire. The market faces a critical test in 2025. Whether to buy, sell, or wait depends on individual circumstances. Strategic advice and a data-driven approach are crucial for making informed decisions in today’s unpredictable market.

The COV secret sauce isn’t working anymore. Record-breaking prices keep coming: $1.73 million yesterday, $1.88 million today in Bishan. That last one’s a maisonette from 1991 – practically a spring chicken among its kind, given HDB stopped building these units in 1995.

Remember 2014? When resale prices went wild, HDB played its trump card: hiding COV data. Buyers and sellers had to shake hands on price before seeing valuations. Overpay? Too bad – loans won’t cover that premium. The strategy worked beautifully then. Zero COV became standard, and prices took a nice, long nap.

Until Covid hit.

Why isn’t this old trick working now? First, meet the right-sizers. These folks just sold private properties at peak prices. They’re swimming in cash and happy to overpay for their forever HDB home. Who needs to worry about COV when you’re sitting on a private property windfall?

Private market prices aren’t helping either. That $1.4 million Henderson flat from 2022 looks almost quaint now. When private options hit $2 million, a million-dollar HDB starts making twisted sense.

Here’s the real deal: past transactions drive future prices. We see final prices but not COV amounts. Was that $800,000 flat really worth $800,000, or did someone pay $100,000 over value? Nobody knows. The next buyer just sees $800,000 and builds from there.

HDB faces a critical challenge: keeping flats under $2 million. They’ve already flagged one misleading $2 million listing (it was actually two units). But public perception is everything. If that $1.88 million Bishan unit sells, and others follow, HDB’s “unrealistic” stance might backfire spectacularly.

They pulled one rabbit from the hat with COV concealment. Time for another trick? 2025 should tell.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Buying Tips Opinion

6 Hot Property Market Trends in Singapore 2024: What Buyers Should Anticipate

Jayson Ang – May 27, 2024 –

TLDR When diving into Singapore's property market, expect a rollercoaster ride as trends shift drastically in 2024. Landlords and tenants...

All Buying Tips Opinion Selling Tips

The Scarcity of Resale Condos in Singapore (2025): Understanding the Supply Shortage

Jayson Ang – September 10, 2026 –

TLDR Resale condos in Singapore are facing a sharp supply crunch in 2025, driven by fewer new launches, developers holding...

Mandarin Top 5

Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise

Jayson Ang – June 21, 2025 –

TLDR Singapore stands out as a top destination for culture lovers, offering a rich blend of heritage and modernity through...

Mandarin Top 5

Navigating Singapore’s Real Estate Market: The Truth Behind 5 Common Misconceptions

Jayson Ang – March 19, 2024 –

The real estate market in Singapore is known for its stability and attractiveness to investors both locally and internationally. However,...

Mandarin Top 5

Top 5 Best Unique Nighttime Experiences in Singapore

Jayson Ang – December 13, 2024 –

Singapore, a vibrant city-state known for its stunning skyline and diverse culture, truly comes alive at night. As the sun...

Mandarin Top 5

5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made

Jayson Ang – May 10, 2024 –

Investing in property is a great way to build wealth and secure a stable source of passive income. When it...

Mandarin Top 5

Top 5 Art Galleries in Singapore for Contemporary Art

Jayson Ang – May 24, 2024 –

Singapore, known for its modern architecture and vibrant culture, has a thriving art scene that showcases the best of contemporary...

Mandarin Top 5

Top 5 Reasons : Why is Supply so tight for Singapore Property?

Jayson Ang – January 22, 2025 –

Singapore's property market has been experiencing a tight supply in recent years, leading to increased demand and rising property prices....

All Buying Tips

Is the Singapore Property Market Set for a Dip in 2024?

Jayson Ang – January 26, 2024 –

TLDR The Singapore property market is experiencing shifts with Morgan Stanley adjusting its outlook on major developers. A forecast predicts...

All Buying Tips Selling Tips

Singapore Homebuyers: Finding Hidden Value in ‘Undesirable’ Property Traits

Jayson Ang – June 15, 2025 –

TLDR Many perceived drawbacks in Singapore’s property market—such as mortgage lock-ins, leasehold status, west-facing units, nearby construction, inefficient spaces, and...