Singapore Property Valuation: How Your Home Gets Valued
Whether you're selling your HDB flat, making an offer on a resale condo, or refinancing your mortgage, property valuation sits at the heart of almost every major transaction in Singapore — yet most buyers and sellers don't fully understand how it works.
What Is a Property Valuation?
A property valuation (also called an "appraisal") is a professional assessment of a property's open-market value at a specific point in time. In Singapore, valuations are carried out by licensed appraisers — sometimes called valuers — registered with the Singapore Institute of Surveyors and Valuers (SISV) or operating under a licensed valuation firm.
The resulting figure, known as the market value, represents what a willing buyer and willing seller would agree on under normal conditions, without undue pressure. This number matters enormously because it determines:
- How much CPF OA savings you can use towards the purchase
- The maximum loan quantum a bank or HDB will offer
- Whether a buyer overpays relative to the bank's assessment
- The baseline for calculating stamp duties in some cases
HDB Valuations vs Private Property Valuations
HDB Resale Flats
For HDB resale transactions, HDB conducts its own valuation after a buyer and seller agree on a price and submit the resale application. The valuation is carried out by HDB-appointed private valuers on a rotational basis.
The valuation is critical because both CPF usage and HDB housing loan eligibility are pegged to the lower of the purchase price or the valuation figure. If you agree to pay S$600,000 for a flat that HDB values at S$570,000, the S$30,000 difference — called Cash Over Valuation (COV) — must be paid entirely in cash. You cannot use CPF or borrow it from HDB for COV.
This is why savvy buyers keep a close eye on transacted prices in the neighbourhood before committing. Understanding how HDB resale prices are moving in your target area helps you gauge whether a asking price is likely to be above or below valuation.
Private Property and Condos
For condos, ECs (after privatisation), and landed homes, buyers typically instruct their own bank to arrange a valuation when applying for a mortgage. Different banks may appoint different valuation firms from their approved panels, and results can vary slightly.
As with HDB, the bank will lend against the lower of the purchase price or the valuation. If you're purchasing a resale condo, it's worth factoring in that a low valuation could reduce your loan quantum and require you to top up with more cash or CPF.
The Main Valuation Methods Used in Singapore
常见问题
- What is Cash Over Valuation (COV) in Singapore property?
- Cash Over Valuation (COV) is the difference when a buyer agrees to pay more for an HDB resale flat than the official valuation figure assigned by HDB's appointed valuer. This excess amount must be paid entirely in cash — it cannot be funded using CPF savings or an HDB or bank loan.
- Who arranges the property valuation when buying an HDB resale flat?
- For HDB resale transactions, HDB arranges the valuation through its panel of appointed private valuers after the buyer and seller submit the resale application. The valuation fee is typically borne by the buyer; check HDB's website for the current fee amount.
- Can different banks give different valuations for the same private property?
- Yes. Different banks appoint different valuation firms from their approved panels, and two licensed valuers assessing the same property may arrive at slightly different figures. If a valuation comes in lower than your purchase price, your loan quantum will be calculated against the lower figure, increasing the cash or CPF top-up required.
- Does Buyer's Stamp Duty use the purchase price or the valuation figure?
- Buyer's Stamp Duty (BSD) in Singapore is calculated on the higher of the purchase price or the market value of the property. This means that even if a bank's valuation comes in below what you paid, your BSD is based on the actual purchase price.
- What factors most affect a residential property's valuation in Singapore?
- The most influential factors are recent comparable transactions in the same area, the property's remaining lease, floor level and facing, proximity to MRT or LRT stations, and the overall condition of the unit and estate. Renovations generally have less impact on valuation than buyers expect.