Cash Over Valuation (COV) is market shorthand for the gap between the resale price a buyer and seller agree on and the value HDB later assesses for the same flat.
Key takeaways
- COV is the difference between the agreed resale price and the value returned by HDB’s Request for Value.
- HDB accepts a valuation request only after the seller has granted the Option to Purchase, so the price is agreed before the value is known.
- An HDB housing loan is limited to 75% of the lower of the resale price and the value, pro-rated where the remaining lease does not cover the youngest applicant to age 95 and above.
- CPF savings can be applied against the assessed value rather than the agreed price, which is why any excess falls to cash.
- HDB publishes resale transaction prices daily so that negotiation can be anchored on recent transacted prices.
See how this applies to your own figures.
HDB Resale Levy Calculator →How a COV arises
In an HDB resale transaction the price is settled first and the flat is valued afterwards. The seller grants the Option to Purchase at the agreed price, and only then can the buyer submit a Request for Value to HDB. Where the value comes back below the agreed price, the shortfall is the COV; where it comes back at or above the price, there is none.
Why a COV is settled in cash
The outcome of the Request for Value sets the basis for CPF usage and the reference point for the housing loan. An HDB housing loan is capped at 75% of the lower of the resale price and the value, pro-rated from 75% where the remaining lease does not cover the youngest applicant to the age of 95 and above. Because both the loan and CPF withdrawal track the value rather than the price, an agreed price above the value leaves a gap that neither can cover.
How the procedure came about
From 5pm on 10 March 2014 HDB began accepting valuation requests only after a buyer had been granted an Option to Purchase, and started publishing resale transaction prices daily rather than fortnightly. The stated aim was to shift negotiation onto the total flat price and recent transacted prices instead of the COV. The Option Period was lengthened from 14 to 21 calendar days at the same time.
Key COV figures
| Item | Figure |
|---|---|
| HDB housing loan limit | 75% of the lower of price and value |
| Basis for CPF usage and loan reference | the assessed value |
| Request for Value processing fee | SGD 120 (including GST) |
| Valuation request accepted | only after the OTP is granted |
| Portion payable in cash | price less value |
Figures as at 2026. Source: HDB.
Worked example
Where a resale flat is bought at SGD 620,000 and HDB assesses the value at SGD 600,000, the COV is SGD 20,000. The housing loan and CPF withdrawal are worked out on the SGD 600,000 value, leaving the SGD 20,000 difference to be paid in cash.
Related terms
All Singapore glossary terms →Related calculator
Work out the resale levy that applies when an owner of a subsidised flat buys another flat from HDB.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to HDB and seek independent professional advice before making any financial decisions.