Answer
Property Valuation in Singapore
Valuations affect how much you can borrow, how much stamp duty you pay, and whether you need extra cash at closing. Here's how they actually work.
Answer: A property valuation costs $300–$500 and determines two critical things: your maximum bank loan (75% LTV based on bank valuation) and your stamp duty (IRAS uses the higher of price or assessed value). Bank valuations are done by independent licensed valuers arranged by the bank. If the valuation comes in lower than your purchase price, you must cover the shortfall — called Cash Over Valuation (COV) — in cash. You can try other banks for a better valuation.
Bank Valuation vs IRAS Valuation
There are two valuations that matter in a property transaction, and they serve different purposes.
| Feature | Bank Valuation | IRAS Valuation |
|---|---|---|
| Purpose | Determines max loan amount | Determines stamp duty payable |
| Who arranges | Bank (from their approved panel) | IRAS (internal assessment) |
| Cost | $300–$500 (paid by buyer) | Free (part of stamp duty filing) |
| Basis | Comparable transactions, condition, lease | Market value assessment, comparable sales |
| Impact if higher than price | Good — more loan headroom | Bad — stamp duty on higher value |
| Impact if lower than price | Bad — COV, less loan | Good — stamp duty on price only |
| Can you challenge? | Try another bank | Object within 30 days |
What Valuers Look At
Licensed valuers assess these factors when determining market value:
- Comparable transactions — recent sales of similar units in the same or nearby developments (most important factor)
- Remaining lease — 99-year leasehold with 60+ years left is fine; below 50 years, valuations drop significantly
- Floor and facing — higher floor and unblocked views command premium
- Unit condition — but renovations are typically not valued dollar-for-dollar (expect 20–40% of reno cost reflected)
- Location factors — MRT proximity, schools, upcoming developments, noise exposure
- Market conditions — valuers may be conservative in soft or uncertain markets
When Valuation Falls Short — COV Example
If the bank values your property lower than the purchase price, you pay the difference in cash.
| Scenario | Valuation = Price | Valuation Short by $50K |
|---|---|---|
| Purchase price | $1,500,000 | $1,500,000 |
| Bank valuation | $1,500,000 | $1,450,000 |
| COV (cash only) | $0 | $50,000 |
| Max loan (75% of valuation) | $1,125,000 | $1,087,500 |
| Down payment (25% of valuation) | $375,000 | $362,500 |
| Total cash + CPF needed | $375,000 | $412,500 |
| Minimum cash (5% down + COV) | $75,000 | $122,500 |
A $50K valuation shortfall increases your minimum cash by $47,500. COV must be paid entirely in cash — CPF cannot be used.
How to Challenge a Low Valuation
1. Try a different bank
Different banks use different valuers. Valuations can vary by 3–5%. Apply to 2–3 banks and compare. This is the most common and effective approach.
2. Provide comparable evidence
Share recent transaction records (from URA or HDB) of similar units that sold at or above your purchase price. Valuers may revise if you show strong comparable data they missed.
3. Request a re-valuation
Some banks allow a re-valuation if you provide new evidence. This may cost an additional $300–$500. Not all banks offer this — ask your relationship manager.
4. Challenge IRAS (for stamp duty)
If IRAS assesses stamp duty on a value higher than your purchase price, you have 30 days to object. File via IRAS e-Stamping portal with supporting comparable transactions.
HDB Resale Valuation
For HDB resale flats, the process is different. HDB arranges the valuation once the buyer submits a resale application. This valuation determines:
- Maximum HDB loan — 80% of the valuation (not purchase price)
- CPF usage limit — CPF can only be used up to the valuation, not beyond it
- Cash Over Valuation (COV) — any amount above valuation must be paid in cash
The HDB valuation is free and typically ready within 2 weeks of the resale application.
Major Valuation Firms in Singapore
| Firm | Typical Cost | Notes |
|---|---|---|
| Knight Frank | $350–$500 | On most bank panels |
| CBRE | $350–$500 | Large portfolio valuations |
| JLL | $300–$450 | Strong in commercial + residential |
| Colliers | $300–$450 | Common for bank panel valuations |
| Savills | $350–$500 | Luxury segment expertise |
You cannot choose the valuer for a bank loan — the bank assigns from their panel. For private/independent valuations, you can engage any IRAS-licensed firm.
Factor valuation into your purchase planning
Use the mortgage calculator to see how different valuation scenarios affect your loan and cash requirements.
FAQ
How much does a property valuation cost in Singapore?
A formal property valuation in Singapore costs $300–$500 for a standard residential unit (HDB or condo). The bank typically arranges it as part of the mortgage application. If you order an independent valuation yourself, it costs the same range. HDB valuations for resale flats are arranged through HDB and cost $0 to the buyer — it is included in the process.
What is the difference between bank valuation and IRAS valuation?
Bank valuation determines how much the bank will lend you (max 75% LTV of their valuation). IRAS valuation determines the stamp duty payable — IRAS uses the higher of the purchase price or their assessed market value. They can arrive at different numbers. A property might be valued at $1M by the bank but IRAS may assess it at $1.05M for stamp duty purposes.
Can I challenge a bank valuation?
Not directly. But you can: (1) Apply to a different bank — each bank uses different valuers and may give a different number, (2) Provide supporting evidence of recent comparable sales to the valuer, (3) Request a re-valuation if you believe the initial assessment missed key factors. Valuations can vary by 3–5% between banks.
Can I challenge an IRAS stamp duty assessment?
Yes. If IRAS assesses stamp duty on a value higher than your purchase price, you can file an objection within 30 days of the assessment. Provide evidence: recent comparable transactions, property condition issues, or other factors IRAS may have missed. IRAS will review and may revise the assessment.
Who conducts property valuations in Singapore?
Licensed valuers registered with the Inland Revenue Authority of Singapore (IRAS). Major valuation firms include Knight Frank, CBRE, JLL, Colliers, and Savills. Banks have panels of approved valuers — you cannot choose your own valuer for a bank loan valuation. For private valuations, you can engage any licensed firm directly.
When do I need a property valuation?
You need a valuation when: (1) Applying for a bank mortgage — the bank orders it, (2) Buying/selling HDB resale — HDB arranges it to determine CPF usage and loan limits, (3) Stamp duty disputes with IRAS, (4) Decoupling — to determine transfer value and BSD payable, (5) Refinancing — new bank may revalue the property, (6) Estate planning or divorce proceedings.
Related
- Bank Valuation vs Purchase Price — COV explained with examples
- HDB Valuation vs Purchase Price — the HDB-specific rules
- Valuation Shortfall Cash Top-Up — what to do when COV hits
- HDB Valuation Report — how the HDB report works
- Valuation Report Cost — $300–$500, bank arranges
Last updated Feb 2026. Valuation costs are indicative and may vary by firm and property type. LTV at 75% for first property with bank loan. This is general information, not financial advice.