By Lip Kwok Wai, Tan Qiuyi | Posted: 25 October 2012 1926 hrs

SINGAPORE

An executive maisonette in Hougang has been sold with a record Cash-Over-Valuation (COV) of S$225,000, about five times the average COV paid for such properties.

COV is the cash premium buyers pay for a resale HDB flat.

The flat is located at Block 237, Hougang Street 21. According to property portal SRX, the 148 square-metre maisonette was sold on October 16 for S$900,000 including COV.

Property analysts said it is not the norm.

They believe this flat commanded a premium because it is situated right next to a neighbourhood park, within walking distance of food centres and an MRT station, and also a buyer who is willing to fork out a large sum of money.

ERA Realty’s key executive officer, Eugene Lim, said: “It also takes a certain kind of buyer who would be willing to pay this price. An example would be someone who is downgrading from private property. Perhaps he has cashed out his landed property, looking for something with a similar feel as landed property, with upstairs, and downstairs. But, having sold his landed property for huge profit… this COV may not a big sum to him.”

With more HDB flats commanding exceptional prices in recent months, analysts MediaCorp spoke to say prices appear to be climbing.

Analysts said some will fetch high prices if they command premium views, sit in a well-connected estate and meet the right buyer with the ready cash.

HDB data shows an average of 2,000 to 3,000 executive flats are transacted every year.

For the first 10 months of 2012, about eight such flats were sold for S$900,000 and above.

There are more than 65,000 executive flats in Singapore, including maisonettes.

– CNA/fa