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HDB Valuation Report — What It Is and How It Works
Buying a resale HDB? HDB's valuation is the number that really matters — it caps your loan, your CPF usage, and determines if you're paying COV. Here's how it works.
Answer: HDB's official valuation determines your max loan and CPF usage. If you pay above valuation, the difference (COV) must be in cash. Valuation is free, done by HDB-appointed valuers, and takes 2–3 weeks.
What the HDB Valuation Determines
The valuation isn't just a number on paper. It directly controls how much financing you can get:
| What | Rule |
|---|---|
| HDB Loan amount | Up to 80% of valuation or purchase price — whichever is lower |
| Bank Loan amount | Up to 75% of valuation or purchase price — whichever is lower |
| CPF usage (with HDB loan) | Up to Valuation Limit (VL) of the flat |
| CPF usage (with bank loan) | Up to Valuation Limit or purchase price, whichever lower |
| Cash Over Valuation (COV) | Purchase price minus valuation — must be paid in cash only |
The key phrase: “whichever is lower.” If you overpay, the loan and CPF don't stretch to cover the excess.
How the Valuation Process Works
- • When: After you submit the resale application (post-OTP exercise)
- • Who: HDB appoints a licensed valuer — you don't choose
- • Cost: Free (HDB covers it)
- • Time: About 2–3 weeks
- • Method: Based on recent comparable transactions, flat condition, remaining lease, location
- • Appeal: No formal appeal process. HDB may review if requested, but rarely changes.
Cash Over Valuation (COV) Explained
If your agreed purchase price is higher than HDB's valuation, the gap is COV. This must come from your own pocket — cash only, no CPF, no loan.
| Example | Amount |
|---|---|
| Agreed purchase price | $550,000 |
| HDB valuation | $520,000 |
| COV (cash only) | $30,000 |
| Max HDB loan (80% of valuation) | $416,000 |
| Remaining (downpayment + COV) | $134,000 |
COV adds to your cash outlay. Always factor it in before agreeing on a price.
COV Trends in 2025–2026
COV varies by town and flat type. In popular mature estates, COV of $30K–$60K is common. Some high-demand flats see COV exceeding $80K. In less popular towns, you might pay at or below valuation.
- • High COV towns: Queenstown, Bukit Merah, Toa Payoh, Bishan, Central Area
- • Lower COV towns: Woodlands, Jurong West, Sembawang, Choa Chu Kang
- • Watch out: Million-dollar HDB flats often come with significant COV — that's all cash
HDB Valuation vs Bank Valuation
If you're using a bank loan instead of HDB loan, the bank conducts its own valuation. The two valuations can differ:
- • HDB valuation: Determines CPF usage limits
- • Bank valuation: Determines the bank's loan quantum
- • If bank values lower: You may get a smaller loan than expected, requiring more cash/CPF upfront
- • If bank values higher: Doesn't help — loan is still capped at “whichever is lower” (valuation vs price)
Want to see how valuation affects your cash needed?
Plug in your numbers — purchase price, expected valuation, loan type — and see exactly what you need in cash and CPF at closing.
FAQ
What is the HDB valuation report?
When you buy a resale HDB flat, HDB conducts an official valuation to determine the flat’s market value. This valuation sets the ceiling for your HDB loan amount and CPF usage. It’s done automatically after you submit the resale application — you don’t request it separately.
How much does the HDB valuation cost?
The HDB valuation is free. HDB appoints the valuer and covers the cost. You don’t choose the valuer or pay for it.
How long does the HDB valuation take?
The valuation typically takes 2-3 weeks after you submit the resale application. It’s part of the 8-week HDB processing period.
What happens if I pay above the valuation (COV)?
The difference between your purchase price and the valuation is called Cash Over Valuation (COV). You must pay COV entirely in cash — you cannot use CPF or a loan for the COV portion. For example, if valuation is $500K and you pay $530K, the $30K COV must be cash.
Can I appeal the HDB valuation?
There is no formal appeal process for the HDB valuation. If you strongly disagree, you can request HDB to review the valuation, but they rarely change it. Your main options are to proceed with the purchase (paying COV in cash) or walk away before exercising the OTP.
Related
- HDB Valuation vs Purchase Price — what happens when there's a gap
- Bank Valuation vs Purchase Price — how bank valuations differ
- HDB Resale Process Timeline — where valuation fits in the buying process
- HDB to Condo Affordability Calculator
Last updated Feb 2026. Valuation process per HDB resale guidelines. This is informational, not financial advice.