KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE

[Freenasi]

COV can be zero but valuation can still keep rising?

Valuation of a property is based on recently transacted price of comparables properties. If recently transacted px comes down, valuation will come down. Vice versa, valuation will go up if the transacted price keep going up. It's a vicious cycle. This transacted price includes the COV.

Actually this cov & valuation thing has been made very fuzzy by free-market forces. Many factors contribute to prices of hdb, including number of PRs buying, prices of private properties, population growth, rental price of HDBs. Perhaps for public housing, it should remain focus on housing people who really needs them. OR, maybe there should be a new category of public housing which serve this purpose. I belive Khaw realise this and is stirring the boat towards this direction but now sure whether the current small changes in the rules is enough.