Understanding HDB Valuation in Singapore: What Buyers Need to Know Before Purchasing a Resale Flat (2025 Edition)

Introduction: Why HDB Valuation Matters More Than Ever

Buying a resale HDB flat in Singapore is a big decision — and one of the most important steps in the process is the HDB valuation. As prices for resale flats continue to rise in certain estates, especially with more million-dollar HDB transactions, it’s crucial to understand how the valuation process works and how it impacts your budget, loan, and CPF usage.

Whether you’re a first-time buyer or upgrading from your BTO, this guide will explain how the HDB valuation process works in 2025, what “Cash Over Valuation” (COV) means, and how to plan financially when navigating the HDB resale market in Singapore.

What Is HDB Valuation?

An HDB valuation is the official estimate of a resale flat’s market value as assessed by an HDB-appointed valuer. It determines:

How much CPF savings you can use
How much you can borrow through an HDB or bank loan
Whether you’ll need to pay Cash Over Valuation (COV)

It is not the same as the seller’s asking price. Even if the seller asks for $600,000, HDB may assess the value at $570,000 — and you’ll have to pay the $30,000 difference in cash (COV).

When Is HDB Valuation Required?

A valuation is only required after:

You have agreed on a price with the seller (via Option to Purchase)
You submit a Request for Valuation to HDB — within 21 calendar days from OTP issuance

This means you commit to the deal before knowing the valuation, so it’s crucial to budget for possible COV.

HDB Valuation Process: Step by Step

Step 1: Agree on Purchase Price

You and the seller agree on the resale price and sign the Option to Purchase (OTP).

Step 2: Request for Valuation

Submit your request via the HDB Resale Portal within 21 days. You’ll need:

Scanned copy of OTP
Flat address and details
$120 fee (non-refundable)

Step 3: HDB Assigns a Valuer

An independent valuer (appointed by HDB) may visit the flat or assess it virtually based on market data.

Step 4: Receive Valuation Report

HDB typically provides the valuation within 7–10 working days. This report shows the official market value of the unit.

Step 5: Plan for COV (if applicable)

If the agreed price > valuation, you must pay the difference in cash. This cannot be covered by CPF or loans.

Example: COV Calculation

Flat Type	Agreed Price	HDB Valuation	Loan/CPF Usage Limit	COV (Cash Needed)
4-Room	$610,000	$580,000	Up to $580,000	$30,000
5-Room	$700,000	$660,000	Up to $660,000	$40,000

So, even if your loan + CPF covers $580,000, you’ll need to prepare $30,000 cash upfront for the COV.

What Affects HDB Valuation?

Valuers consider several factors when estimating a flat’s value:

Recent resale transactions of similar units nearby
Flat’s floor level
Remaining lease
Renovation condition (to a limited extent)
Orientation and facing
Location desirability (e.g., near MRT, schools)

💡 Tip: Use HDB’s Resale Flat Prices Tool to view recent transactions before making an offer.

What Is “Cash Over Valuation” (COV)?

COV is the cash amount you pay above the official HDB valuation. In hot markets or for high-demand flats (e.g. near MRT or in mature estates), sellers may ask for higher prices than valuation.

COV Trends in 2025:

Average COV for 4-room flats: ~$20,000–$30,000
Popular estates (e.g. Queenstown, Bishan): $50,000+ not uncommon
Non-mature towns (e.g. Sengkang, Punggol): Lower or even $0 COV

COV is not covered by CPF or any housing loan — so always plan ahead!

How to Avoid High COV Risks

Study past transactions
- Know the average value of similar units nearby
Work with experienced agents
- They can advise you on likely valuation outcomes before you commit
Negotiate smartly
- If valuation falls short, you can try to renegotiate the price with the seller (before exercising OTP)
Keep cash buffer
- Always reserve funds in case valuation is lower than expected

CPF Usage and Valuation

Your CPF Ordinary Account (OA) can only be used up to the HDB valuation (or lower of purchase price and valuation). Here’s how it works:

Scenario	Purchase Price	Valuation	CPF Usage Limit
A	$580,000	$580,000	$580,000
B	$610,000	$580,000	$580,000
C	$610,000	$620,000	$610,000

Bank Loan, HDB Loan, and Valuation

HDB Loan:

Max 80% of lower of purchase price or valuation

Bank Loan:

Max 75% of lower of purchase price or valuation
Additional 5–10% down payment in cash only

So, for a $580,000 valuation:

HDB loan: Max $464,000
Bank loan: Max $435,000 (plus 5% cash + 20% CPF/cash)

Key Takeaways for 2025 HDB Buyers

✅ Always assume valuation may fall short
✅ Prepare for COV — especially in popular estates
✅ Request valuation quickly after signing OTP
✅ Use data and guidance, not emotion when bidding

Conclusion: Mastering HDB Valuation = Smarter Buying

In 2025’s evolving HDB market in Singapore, valuation plays a critical role in shaping your total cost, loan eligibility, and upfront cash needs. By understanding how the process works, you can avoid nasty surprises and negotiate from a position of knowledge.

Remember: Price isn’t everything — value is.

Need Help Navigating HDB Valuation?

Whether you’re buying your first resale flat or planning to upgrade, we help you estimate HDB valuation, understand financing, and calculate your total cash/CPF needs.

📊 Try our HDB Valuation Estimator Tool or speak with a resale expert today.