ST : Couple snag affordable unit after two-year quest

Dec 04,2010

Couple snag affordable unit after two-year quest

CIVIL servant Kelvin Teo and his wife have been looking for their dream home for almost two years.

But the experience was discouraging, with flat sellers wanting high cash amounts upfront, also known as cash-over-valuation (COV).

But that was before Aug 30, when cooling measures kicked in. These have shifted market dynamics in the couple's favour.

Mr Teo, 28, and his wife Alberta, 21, finally snagged a four-room unit in Bukit Panjang in September for $340,000. The price included a low $11,000 premium.

They preferred resale flats over new ones because those under the HDB's build-to-order (BTO) scheme typically take three years to finish, a wait they felt was too long.

Said Mr Teo: 'The major hindrance was the COV. Flipping through the papers, I could see some of the numbers were getting ridiculous, at more than $50,000.'

They grabbed the four-room flat in Bangkit Road when it came along. 'Though it was more than 20 years old, it was decent and something we could afford,' he said.

The couple, who have a seven-month-old son and a monthly household income of less than $3,500, also had additional help from the Government in the form of a $50,000 housing subsidy.

Mr Teo said the measures to curb speculation in the resale market had helped: 'Before the new measures, high COVs were common. But now I see maybe about three out of 10 sellers demanding a COV of less than $15,000. And that's a good sign.'

DARYL CHIN