Singapore is known for its stable economy, world-class infrastructure, and one of the most transparent real estate markets in the world. Whether you’re buying, selling, refinancing, investing, or applying for a loan, a property valuation is a crucial step in the process.
Property valuation helps determine the fair market value of any residential, commercial, or industrial property based on market trends, location, condition, demand, and regulatory guidelines by the URA (Urban Redevelopment Authority) and MAS (Monetary Authority of Singapore).
In this comprehensive guide, we explain everything you need to know about property valuation in Singapore, including valuation methods, cost structure, eligibility, timelines, government regulations, and tips to get the best valuation.
What Is Property Valuation in Singapore?
Property valuation is an official assessment of a property’s current market value conducted by a licensed property valuer from an approved valuation firm registered with the Singapore Institute of Surveyors and Valuers (SISV).
It is commonly required for:
- Buying or selling property
- Applying for an HDB loan, bank loan, or refinancing
- Stamp duty calculation
- Property tax assessment
- Investment analysis
- Company asset reporting
- Divorce or inheritance settlements
In Singapore’s regulated market, valuation plays a major role in ensuring fair price transactions and preventing property fraud.
Why Property Valuation Is Important in Singapore
Here are the most important reasons why valuation matters:
1. Ensures fair buying/selling price
Avoids overpaying or underselling a property by giving an accurate market benchmark.
2. Essential for bank loan approval
Banks and financial institutions rely heavily on valuation reports to determine the loan-to-value (LTV) ratio.
3. Helps calculate taxes
Government authorities use valuations for Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD), and property tax.
4. Required for HDB resale transactions
HDB mandates valuation before granting resale approvals.
5. Useful for investment analysis
Investors use valuation to plan yields, returns, and capital appreciation.
6. Needed for insurance and asset division
A valuation report is legally admissible for disputes, inheritance, and insurance claims.
Types of Properties That Require Valuation in Singapore
Property valuation is required for almost every type of real estate transaction in Singapore. Different property categories have their own valuation requirements depending on regulations, loan approvals, and transaction purposes. Below are the key property types where valuation is commonly needed:
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Residential Properties
- HDB flats
- BTO apartments
- Resale HDB
- Condominiums
- Executive Condominiums (ECs)
- Landed properties (Terrace, Semi-Detached, Bungalow)
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Commercial Properties
- Office spaces
- Shophouses
- Retail units
- Shopping malls
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Industrial Properties
- Warehouses
- Factories
- B1/B2 industrial units
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Hospitality Properties
- Hotels
- Serviced apartments
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Mixed-Use Properties
- Buildings with combined residential and commercial use
Property Valuation in Singapore: Step-by-Step Process
Step 1: Select a Licensed Valuation Firm
You must hire a valuer from the SISV-registered list approved by banks and authorities.
Step 2: On-Site Inspection
The valuer visits the property and assesses:
- Floor area
- Layout and structure
- Renovation quality
- Property age
- Maintenance condition
- Orientation & natural lighting
- Facilities (gym, pool, lifts, security for condos)
Step 3: Market Data Comparison
Valuers compare the property with recent transactions recorded by URA and HDB.
Step 4: Apply Valuation Methods
Depending on the property type, valuers use:
- Comparable Sales Method
- Income Cap Approach
- Cost Method
- DCF Analysis (for commercial assets)
Step 5: Issue Valuation Report
The final report includes:
- Market value estimate
- Supporting data
- Comparable transaction list
- Property photographs
- Valuer’s analysis & justification
Step 6: Use the Report for Transactions
The valuation is valid for a limited duration, usually between 3 to 6 months for banks.
Valuation Methods Used in Singapore
1. Comparable Sales Method (Most Common)
Used for: HDB, condos, private residential
Valuers compare your property with recent transactions within the past 6–12 months in the same area.
2. Income Capitalisation Method
Used for: Commercial properties
Value = Annual rental income ÷ Capitalisation rate
3. Cost Method
Used for: Industrial/landed properties
Value = Land price + Construction cost – Depreciation
4. Discounted Cash Flow (DCF)
Used for: Hotels, large commercial assets
Future cash flows are discounted to present value.
Factors That Influence Property Valuation in Singapore
1. Location & Connectivity
Properties near MRTs (e.g., Thomson East Coast Line, Downtown Line) have higher valuation.
2. URA Zoning & Master Plan
Future development plans significantly impact long-term value.
3. Property Type & Tenure
- Freehold properties usually get a higher valuation
- 99-year leasehold values depreciate after 20–30 years
4. Age of the Property
Newer condos/HDBs command better value.
5. Floor Level & View
Higher floors with open views get premium valuations.
6. Demand & Supply Trends
High demand in districts like D1, D2, D9, D10, D15 boosts value.
7. Condition & Renovations
Well-maintained units get better valuation.
8. Nearby Amenities
Malls, schools, business hubs, and parks influence value.
Property Valuation Costs in Singapore
The cost of property valuation in Singapore varies based on the type of property, its size, complexity, and the valuation firm’s expertise. Below is a quick breakdown of typical valuation fees to help you estimate your budget:
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HDB Flats
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SGD $120 – $350
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Condominium Units
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SGD $350 – $650
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Executive Condominiums (ECs)
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SGD $350 – $600
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Landed Properties
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SGD $800 – $2,500
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Commercial Properties
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SGD $900 – $3,000+
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Industrial Properties
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SGD $800 – $2,000
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Hotels / Large Commercial Assets
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SGD $5,000 – $30,000+
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Prices vary by size, complexity, valuer reputation, and urgency.
How Long Does a Property Valuation Take in Singapore?
- HDB / Condo: 1–2 days
- Landed property: 3–5 days
- Commercial/Industrial: 4–10 days
- Hotels / Large buildings: 1–3 weeks
Urgent/Express valuations may be completed within 24 hours at extra cost.
Property Valuation for HDB Flats (Special Rules)
HDB has specific guidelines:
Required for:
- Resale HDB purchase
- HDB loan
- Calculation of Cash Over Valuation (COV)
- Refinancing
Important Points:
- Buyers must request a Valuation Report through the HDB portal.
- COV is paid in cash only, above valuation.
Bank Loan Valuation in Singapore
Banks rely on valuation for:
- New home loan
- Refinancing
- Equity release/cash-out loans
Banks use their own panel of approved valuers, so valuation may differ from open-market valuers.
Loan amount depends on the lower of the valuation or the purchase price.
Property Valuation for Foreign Buyers in Singapore
Foreigners buying residential property must follow the Residential Property Act rules.
Valuation is important for:
- ABSD tax calculation
- Loan eligibility in Singapore
- Asset proof for visa/relocation
Foreigners can easily buy:
- Condos
- Commercial property
- Industrial property
But need special approval for:
- Landed property
- GCBs (Good Class Bungalows)
- Restricted zones
Common Mistakes to Avoid During Property Valuation
- Not preparing the property before the inspection
- Comparing with the wrong districts or property types
- Relying only on online property prices
- Hiring an unregistered valuer
- Misunderstanding loan-to-value ratios
- Hiding defects or alterations
Tips to Improve Your Property Valuation
- Clean & declutter the unit
- Repair minor defects
- Provide renovation invoices
- Highlight unique features (view, layout, upgrades)
- Present accurate floor plans
- Prepare tenancy contracts (for rental units)
- Show recent maintenance documents
These small steps can improve valuation by 2%–8%.
Do You Need a Property Valuer or an Agent?
Although agents give price insights, only licensed valuers can issue official valuation reports used by:
- Banks
- HDB
- Courts
- Government authorities
For any legal or financial matter, valuation by SISV-registered firms is mandatory.
Property Valuation Report: What It Includes
A standard Singapore valuation report contains:
- Executive summary
- Market valuation
- Property details & photographs
- Comparable sales analysis
- Rental yield assessment
- Tenure & zoning
- URA Master Plan review
- Valuer’s professional comments
- Certification & signature
The report is valid for 3–6 months, depending on the institution.
Conclusion
Property valuation in Singapore is essential for anyone planning to buy, sell, refinance, or invest in real estate. With a transparent and highly regulated system, valuation ensures fair pricing and protects your financial interests.
Understanding the valuation process, factors, cost, and government rules helps you make smarter property decisions.
Need Help With Property Valuation or Tax Filing in Singapore?
If you need assistance with Property Valuation, Singapore Company Setup, Tax Filing, or Cross-Border Compliance, the experts at Ease to Compliance are ready to guide you.
Contact us today to get expert assistance.
FAQs – Property Valuation in Singapore
1. How long is a property valuation report valid in Singapore?
Answer: Most valuation reports are valid for 3 to 6 months, depending on the bank or financial institution. If market conditions change significantly, lenders may request a fresh valuation.
2. Can I use one valuation report for multiple banks when applying for loans?
Answer: No. Each bank relies on its own panel of approved valuers, so even if the report is recent, banks may require a new valuation based on their standards.
3. Do valuers consider nearby construction works when determining value?
Answer: Yes. Upcoming MRT lines, public infrastructure works, and private construction projects can affect valuation positively or negatively, depending on noise, view blockage, and long-term improvements.
4. Will illegal renovations or extensions affect my valuation?
Answer: Yes. Unauthorised renovations, unapproved extensions, or modifications that violate URA/HDB rules can reduce valuation or lead to requests for correction before the report is finalised.
5. Does a vacant property get a different valuation compared to a tenanted one?
Answer: Sometimes. For investment properties, a tenanted unit with a good rental yield may receive a higher valuation, especially under the income method used for commercial and industrial units.
