HDB Valuation in Singapore: A Complete Guide for Buyers and Sellers

What is HDB Valuation?

HDB valuation refers to the official process of determining the market value of an HDB flat in Singapore. This valuation is typically conducted by a licensed valuer appointed by the Housing & Development Board (HDB). It plays a critical role in the HDB resale process, especially for buyers who plan to use their CPF savings or apply for an HDB loan.

The valuation determines the market value of the flat, which affects the amount of CPF funds or loan a buyer can use. Understanding how this works is crucial for both sellers and buyers to make informed decisions during a resale transaction.

Why is HDB Valuation Important?

There are several reasons why HDB valuation is essential in the Singapore property market:

• CPF Usage: The maximum CPF amount a buyer can use is based on the lower of the purchase price or the HDB valuation.

• Housing Loan Limit: HDB and bank loans are also calculated based on the valuation, not the selling price.

• Cash Over Valuation (COV): If the agreed resale price is higher than the official valuation, the difference must be paid in cash, known as the COV. This cannot be covered by CPF or loan.

When Do You Need an HDB Valuation?

You will need to request an HDB valuation after the Option to Purchase (OTP) has been granted but before exercising it. Here’s how the timeline typically works:

1. Buyer receives OTP from the seller.

2. Buyer submits a valuation request through HDB’s portal.

3. HDB assigns a valuer and processes the request (usually within 5 working days).

4. The valuation report is issued online via the HDB website.

5. Buyer then decides whether to exercise the OTP based on the valuation.

It’s important to note that only buyers can request the valuation, and sellers are not allowed to obtain or provide the official valuation upfront.

How to Request for an HDB Valuation

Here’s a step-by-step guide to requesting a valuation:

1. Go to the HDB Resale Portal.

2. Login using your SingPass.

3. Select your resale transaction and click “Request for Valuation”.

4. Submit required documents, including:

   • Option to Purchase (OTP)

   • Buyer and seller details

   • Postal code and unit details

5. Wait for HDB to assign a valuer.

The valuation fee is waived for resale applications, and the process typically takes about 5 to 7 working days.

How is HDB Valuation Calculated?

HDB does not publicly disclose the exact formula used in valuations, but valuers consider several key factors:

• Recent resale transactions of similar flat types in the area

• Floor level (higher floors often command a premium)

• Flat model and size

• Remaining lease on the flat

• Location and amenities nearby (e.g. MRT, schools, malls)

• Overall market trends

It’s important to understand that renovation costs and interior design do not significantly influence the valuation. The valuation reflects market value, not aesthetic value.

Understanding Cash Over Valuation (COV)

COV is the amount a buyer pays above the official valuation. For example:

• Selling price: SGD 580,000

• HDB Valuation: SGD 560,000

• COV: SGD 20,000 (to be paid in cash)

In recent years, COV trends have fluctuated. During a hot property market, COV amounts tend to increase, especially for flats in popular or mature estates. Buyers should always check recent resale prices to estimate potential COVs.

Can You Appeal an HDB Valuation?

HDB generally does not allow appeals for a revaluation unless there is a material error or new supporting evidence (e.g. updated transactions of nearby flats). If a buyer is unhappy with the valuation:

• They can choose not to exercise the OTP.

• Negotiate a new price with the seller.

• Wait and re-enter the resale market at a later time.

Tips for Buyers

• Check recent resale data on HDB’s website or property portals before negotiating a price.

• Budget for potential COV in cash if you’re aiming for a hot location.

• Don’t rely on renovation or furnishings to influence valuation – focus on structural and locational value.

• Plan your CPF and housing loan limits based on the potential valuation, not the asking price.

Tips for Sellers

• Price realistically: Overpricing may deter buyers once the valuation comes in lower.

• Understand that valuation reports cannot be requested in advance, so be transparent and cooperative.

• Highlight the flat’s unique selling points (location, level, lease balance) that could impact buyer interest.

• Consider engaging a property agent with experience in HDB resale to guide pricing strategy.

HDB Valuation vs. Bank Valuation

If a buyer takes a bank loan instead of an HDB loan, a separate bank valuation may be required. Bank valuations can differ from HDB’s, sometimes higher or lower. This discrepancy can affect:

• Loan amounts

• CPF usage

• Cash outlay

Always clarify with your bank or mortgage advisor before proceeding with the transaction.

Conclusion

HDB valuation is a crucial component of buying or selling an HDB flat in Singapore. Whether you’re a first-time buyer or seasoned seller, understanding how the valuation works can help you make smarter, well-informed decisions. Always stay updated with current market trends, seek professional advice when necessary, and plan your finances with the valuation in mind.

Looking for an accurate HDB valuation?
Let our experienced team help you assess your flat’s market value, provide pricing insights, and guide you through the resale process.

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