Debated in Parliament on 14 Jan 2013.
Dr Intan Azura Mokhtar asked the Minister for National Development whether the Ministry will consider instituting a cap on Cash-over-Valuations (COVs) for sale of HDB flats to a maximum quantum of 10% of the valuation price of the resale flat.
Cash-Over-Valuation (COV) is the difference between the resale price and the market valuation of the flat. The former is determined by the buyer and the seller. The latter is assessed by a professional valuer. To cap the COV as proposed, the Government will have to set the resale price. I think it is not desirable or even feasible.
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