What is an HDB valuation?
An HDB valuation is HDB's assessment of what a resale flat is worth on the open market at a point in time. It matters because it caps how much a buyer can pay using CPF savings and a housing loan. Anything above the valuation must be paid in cash.
For sellers, this means the valuation affects how easily you can sell. If your asking price is far above what the flat is likely to be valued at, fewer buyers will have enough cash to cover the gap.
Key point: since March 2014, HDB no longer gives a valuation before the price is agreed. Buyer and seller agree a price first, and only then does the buyer request the valuation. That's why sellers need a good market estimate up front.
How the Request for Value works
The official process is called the Request for Value. Here's what you need to know:
| Item | Details |
|---|---|
| Who submits it | The buyer, or the buyer's salesperson on their behalf |
| When it's needed | Whenever the buyer uses CPF savings or a housing loan (from HDB or a bank) |
| When to submit | By the next working day after the Option Date on the Option to Purchase (OTP) |
| How | Online via My Flat Dashboard on the HDB Flat Portal, with a scan of page 1 of the OTP |
| Fee | $120 including GST, paid by the buyer and non-refundable |
| Validity | 3 months from when the outcome is released; the resale application must be submitted within this period |
| Cash-only buyers | Not required if no CPF or housing loan is used |
The buyer must wait for the outcome before exercising the OTP. If the value comes in lower than expected, the buyer can choose not to exercise, though they lose the option fee.
Where valuation fits in the selling process
- Check you can sellMake sure you've met your Minimum Occupation Period (MOP), usually 5 years from key collection.
- Register your Intent to SellDone on the HDB Flat Portal before you can grant an OTP.
- Set your price and market the flatThis is where a realistic estimate matters most.
- Grant the Option to PurchaseThe buyer pays an option fee of $1 to $1,000. The option fee and exercise fee together can't exceed $5,000.
- Buyer submits the Request for ValueBy the next working day after the Option Date.
- Buyer exercises the OTPOnly after the valuation outcome is out, within the option period.
- Resale application and completionBoth parties submit their portions; HDB processes the sale to completion.
Thinking of selling?
Get a free estimate based on recent sales near your block.
Cash over valuation (COV), explained
COV is the difference between the agreed price and HDB's valuation. Buyers must pay COV in cash, because CPF and loans only cover up to the valuation.
Example: a flat is sold for $620,000 and HDB values it at $600,000. The COV is $20,000, which the buyer pays in cash. If the valuation is $620,000 or more, there's no COV.
For sellers, a high COV narrows your pool of buyers. Pricing close to likely valuation usually means a faster sale with fewer failed deals.
What affects your HDB flat's value
Valuation looks at the flat's open-market value, so it follows what comparable flats have actually sold for. The main factors:
- Remaining lease: flats with more years left generally fetch more, and very short leases can limit CPF use and loans for buyers.
- Town and location: distance to MRT stations, schools, malls and the city centre.
- Floor level: higher floors usually sell for more.
- Flat type and floor area: including model (e.g. older, larger flats can be valued well).
- Facing, views and noise: unblocked views and quieter units are worth more.
- Condition and renovation: affects buyer appeal, though major renovations rarely add their full cost.
- Recent comparable sales: prices of similar flats in the same block or estate.
- Market conditions: overall resale demand, supply and policy changes.
Because of this, two flats in the same block can value quite differently.
How to estimate your flat's value before selling
As a seller you can't get HDB's official valuation in advance, but you can get a close idea:
- Check recent transactions. HDB publishes resale prices on the HDB Flat Portal. Filter by town, flat type and block, and focus on the last 3 to 6 months.
- Compare like for like. Match flat type, floor range, remaining lease and size as closely as you can.
- Adjust for your unit. Higher floor, better view or newer renovation? Nudge up. Facing a road or needing work? Nudge down.
- Get a professional estimate. A property professional can review comparables in detail and suggest a realistic price range.
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Frequently asked questions
How much does an HDB valuation cost?
HDB charges a $120 processing fee (including GST) for a Request for Value. It's paid by the buyer and is non-refundable.
Can I get an HDB valuation before selling my flat?
Not an official one. Only the buyer can submit a Request for Value, after the seller grants the OTP. Sellers can estimate value from recent transaction prices or ask a property professional for a market estimate.
How long is an HDB valuation valid?
3 months from the day the outcome is available in My Flat Dashboard. The resale application must be submitted within this period, or a new Request for Value is needed.
What is COV?
Cash over valuation: the amount the agreed price exceeds HDB's valuation. Buyers pay it in cash because CPF and loans are capped at the valuation.
Do cash buyers need a Request for Value?
No. If the buyer pays fully in cash, with no CPF and no housing loan, a Request for Value isn't required.
What if the valuation comes in lower than the agreed price?
The buyer can pay the difference in cash, renegotiate with the seller, or decide not to exercise the OTP (losing the option fee).
Sources: HDB, Request for Value; HDB, Terms and Conditions of Sale and Purchase of an HDB Resale Flat. Information is general and may change; always check HDB's website for current rules.