# Property Valuation

- Topic: Buying & selling
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/valuation/

## What is a property valuation?

A property valuation is an independent estimate of what a home is worth. In Singapore it matters because bank loans, HDB loans and CPF usage are all capped by the lower of the price and the valuation, so if you pay above valuation, the difference (cash over valuation, or COV) must be paid in cash.

## Key facts

- **HDB resale flats:** Submit a Request for Value to HDB by the next working day after the OTP is granted
- **HDB processing fee:** $120, including GST
- **HDB outcome:** Typically within 10 working days; valid for 3 months
- **Private property:** By a licensed valuer, e.g. your bank's, dated within 3 months of the purchase date for CPF use
- **Loans and CPF are based on:** The lower of the purchase price and the valuation
- **Stamp duty is based on:** The higher of the purchase price and the market value

## How valuation works

A valuation protects lenders, CPF savings and buyers from overpaying with borrowed or retirement money. Who does it depends on the property:

| Property | Who values it | When |
| --- | --- | --- |
| HDB resale flat | HDB, through a Request for Value | After the seller grants the OTP, before you exercise it |
| Private property using CPF or a loan | A licensed valuer, which can be your bank's valuer | Report dated within 3 months of the purchase date (CPF rule) |
| Any property, for stamp duty | IRAS checks the price against market value | After the purchase document is signed |

## What the valuation caps

The valuation sets the ceiling for:

- **Your loan.** The [loan-to-value limit](https://propertymeter.sg/glossary/ltv/) applies to the lower of the price and the valuation. HDB loans go up to 75% of the lower of the resale price or value.
- **Your CPF usage.** The CPF [valuation limit](https://propertymeter.sg/glossary/valuation-limit/) is the lower of the price and the valuation at the time of purchase.

Anything you pay above the valuation must come from cash.

## Example

You agree to buy an HDB resale flat for $650,000. The Request for Value comes back at $630,000.

| Item | Amount |
| --- | --- |
| Cash over valuation (COV) | $20,000, cash only |
| Maximum HDB loan (75% of $630,000) | $472,500 |
| CPF and cash for the rest of the $630,000 | $157,500 |
| BSD, on the $650,000 price | $14,100 |

## Common mistakes

- **Agreeing a price without checking recent transactions.** A price well above recent sales may come back with a lower valuation and a cash gap.
- **Missing HDB's deadline.** The Request for Value must be submitted by the next working day after the Option Date.
- **Letting the outcome expire.** HDB's valuation outcome is valid for 3 months, and both sides must submit the resale application within that time.

## Frequently asked questions

### Do I need a valuation if I pay fully in cash?

For an HDB resale flat, no. HDB says you don't need to submit a Request for Value if you are not using CPF savings or a housing loan.

### Can I use a private valuer for an HDB flat?

Not for CPF purposes. CPF Board accepts only HDB's valuation for HDB flats. For private property, any licensed valuer can do it, including your bank's.

### What is cash over valuation (COV)?

It is the amount by which the agreed price exceeds the valuation. Loans and CPF are capped by the lower valuation, so COV must be paid in cash.

### Can I exercise an HDB OTP before the valuation comes back?

No. HDB says you have to wait for the outcome of the Request for Value before you exercise the OTP within the 21-day option period.

### Why is stamp duty based on a different figure?

IRAS charges Buyer's Stamp Duty on the purchase price or market value, whichever is higher, while lenders and CPF use whichever is lower. The two rules protect different interests.

## Sources

1. [Request for Value for a resale flat](https://www.hdb.gov.sg/buying-a-flat/resale-flats/process-for-buying-a-resale-flat/option-to-purchase/request-for-value) (HDB)
2. [How much CPF savings you can use for your home purchase](https://www.cpf.gov.sg/member/infohub/educational-resources/how-much-cpf-savings-you-can-use-for-your-home-purchase) (CPF Board)
3. [Do I need a valuation report to use my CPF savings for property purchase if I am not taking a loan?](https://www.cpf.gov.sg/service/article/do-i-need-a-valuation-report-to-use-my-cpf-savings-for-property-purchase-if-i-am-not-taking-a-loan) (CPF Board)
4. [Housing loan from HDB](https://www.hdb.gov.sg/buying-a-flat/flat-grant-and-loan-eligibility/housing-loan/housing-loan-from-hdb) (HDB)
5. [Buyer's Stamp Duty (BSD)](https://www.iras.gov.sg/taxes/stamp-duty/for-property/buying-or-acquiring-property/buyer's-stamp-duty-(bsd)) (IRAS)

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Source: PropertyMeter (https://propertymeter.sg/glossary/valuation/). General information only, not financial, legal or tax advice.