HDB Valuation: How It Works in Singapore
The valuation determines how much CPF you can use, how much you can borrow, and how much cash you need. Here is exactly how the process works.
Answer: HDB resale valuation is done by an HDB-appointed panel valuer using the market comparison approach \u2014 they look at recent transactions of similar flats in the same area. The valuation determines your maximum CPF usage and loan amount. Any amount you pay above valuation is COV (Cash Over Valuation), which must be paid in cash. Valuation is free and automatically triggered when you submit a resale application.
The Valuation Process \u2014 Step by Step
Step 1: Submit resale application
After the buyer exercises the OTP, both buyer and seller submit the resale application through the HDB Resale Portal (via Singpass). This triggers the valuation request automatically.
Step 2: HDB appoints a valuer
HDB assigns one of their panel valuers. You do not get to choose. The valuer may or may not physically inspect the flat \u2014 most valuations are now done using data and comparable transactions without a site visit.
Step 3: Market comparison analysis
The valuer analyses recent transactions of comparable flats \u2014 same town, similar flat type, similar floor level, similar remaining lease. Adjustments are made for differences in location, condition, and amenities.
Step 4: Valuation report issued
The valuation is typically completed within 1\u20132 weeks. Both buyer and seller are notified of the valuation figure through the HDB Resale Portal. This number is final for the transaction.
What Valuers Consider
| Factor | Impact | Notes |
|---|---|---|
| Recent comparable sales | Highest weight | Same estate, flat type, within past 3\u20136 months |
| Remaining lease | High | Longer lease = higher valuation. Sharp drop below 60 years |
| Floor level | Medium | Higher floors typically valued 1\u20133% more per 3\u20135 floors |
| Facing / orientation | Medium | Unblocked views, no west sun = premium |
| Flat condition | Low\u2013Medium | Renovations add some value but not dollar-for-dollar |
| Proximity to MRT | Medium | Within 500m of MRT adds 5\u201310% typically |
| Amenities / schools | Low\u2013Medium | Nearby malls, popular schools add marginal premium |
How Valuation Affects Your Finances
Example: 4-room flat, agreed price $580,000, valuation $550,000
| Item | Based On | Amount |
|---|---|---|
| Maximum CPF usage | Valuation | $550,000 |
| Maximum HDB loan (80% LTV) | Valuation | $440,000 |
| Maximum bank loan (75% LTV) | Valuation | $412,500 |
| COV (Cash Over Valuation) | Price \u2013 Valuation | $30,000 |
| Down payment (HDB loan, 10%) | Valuation | $55,000 |
| Total cash needed (HDB loan) | COV + stamp duty | $30,000 + BSD |
Key point: The $30,000 COV must be paid in cash only. You cannot use CPF or your housing loan for this. The down payment (10% for HDB loan, 25% for bank loan) can use CPF, but COV cannot.
COV in 2026 \u2014 What to Expect
| Flat Type | Typical COV Range | Notes |
|---|---|---|
| 3-room | $5,000\u2013$20,000 | Lower COV in mature estates with many comparable sales |
| 4-room | $10,000\u2013$40,000 | Most common flat type, COV varies widely by town |
| 5-room | $15,000\u2013$50,000 | Popular towns like Bishan, Toa Payoh see higher COV |
| Executive | $20,000\u2013$60,000 | Limited supply drives higher premiums |
COV ranges are estimates based on 2025\u20132026 market conditions. Actual COV depends on specific flat, location, and market timing.
What to Do If Valuation Is Lower Than Expected
If you are the seller:
- A low valuation means buyers need more cash (higher COV), which shrinks your buyer pool
- Consider adjusting your asking price closer to the valuation to attract more buyers
- If you believe the valuation is wrong, you can withdraw the application, relist, and get a new valuation with a different buyer \u2014 but the new valuation may be similar
- Highlight comparable transactions that support a higher value to your agent for future negotiations
If you are the buyer:
- A low valuation means you need more cash for COV. Make sure you have enough before exercising the OTP
- Negotiate a lower price with the seller \u2014 the valuation gives you leverage
- If the COV is too high, you can walk away before exercising the OTP and forfeit only the option fee ($1\u2013$1,000)
- Remember: you cannot use CPF or a loan to pay COV. It must be cash from your bank account
Planning to buy or sell an HDB?
Use our calculators to see how valuation, CPF, and loan amounts work together for your specific situation.
FAQ
Who does the HDB valuation and how much does it cost?
HDB appoints one of their panel valuers to conduct the valuation. As of 2026, the valuation is free for HDB resale transactions — neither the buyer nor seller pays for it. The valuer is assigned automatically when a resale application is submitted through the HDB Resale Portal. You do not get to choose the valuer.
How long is an HDB valuation valid for?
The HDB valuation is valid for the specific transaction it was commissioned for. If the transaction falls through and you start a new one with a different buyer, HDB will order a new valuation. There is no fixed expiry period — it is tied to the resale application, not a calendar date.
Can the buyer or seller challenge a low HDB valuation?
Neither party can directly challenge the HDB-appointed valuation. However, if the buyer feels the valuation is too low (meaning higher COV), they can walk away before exercising the OTP and forfeit only the option fee ($1–$1,000). Sellers can withdraw and relist, but this means starting over. In practice, both parties usually negotiate the price around the valuation.
What is COV and who pays it?
COV (Cash Over Valuation) is the difference between the agreed purchase price and the HDB valuation. If a flat is valued at $500,000 but sells for $530,000, the COV is $30,000. The buyer must pay COV in cash — it cannot come from CPF or a housing loan. This is one of the biggest surprises for first-time HDB buyers.
Does the valuation affect my CPF usage and loan amount?
Yes, significantly. CPF usage and the HDB housing loan are both capped at the valuation amount, not the purchase price. If valuation is $500,000 and you buy at $530,000, you can only use CPF and loan up to $500,000. The $30,000 COV must be paid in cash. For bank loans, the LTV is also based on the lower of valuation or purchase price.
What factors do valuers consider for HDB flats?
Valuers use recent comparable transactions (same block, estate, flat type), remaining lease, floor level, facing/orientation, condition (original vs renovated), proximity to MRT/amenities, and any special features. They weight recent transactions most heavily — typically looking at sales within the past 3–6 months in the same estate.
Related
Last updated Feb 2026. HDB valuation process per HDB resale guidelines. COV ranges are market estimates and vary by location and timing. This is informational, not financial advice.