The Straits Times reported yesterday that the median Cash-over-valuation (COV) for HDB flats hit a new high in the fourth quarter of 2009. COVs are cash premiums that a buyer has to pay over the bank’s valuation of the flat. Why do we have to pay a COV, you might ask.
There’s really nothing new that this announcement can tell us about the costs of living in Singapore. It’s always been a major gripe that things here are just way too expensive. That’s why we love sales so much, no?
The higher costs of living this year is a result of increasing inflation and a stronger currency. It seems that raw food prices, especially those imported from Australia and New Zealand, have increased considerably in the last 12 months.