Singapore HDB Resale Calculator - HDB Flat Value Calculator

Key Steps in HDB Resale:

• Property Search: Find suitable HDB flat within budget
• Price Negotiation: Negotiate resale price with seller
• HDB Valuation: Obtain official HDB valuation
• Loan Application: Apply for housing loan from bank or HDB
• Legal Process: Engage lawyer for conveyancing
• Completion: Sign documents and collect keys

Important Considerations:

• Cash Over Valuation: Amount above HDB valuation paid in cash
• Lease Remaining: Impact on loan eligibility and future value
• Ethnic Integration Policy: Racial quota requirements
• Income Ceiling: Maximum household income limits

Timeline:

• Option to Purchase: 1-3 weeks for decision
• Loan Processing: 4-8 weeks for approval
• Legal Completion: 8-12 weeks total process
• Key Collection: Upon full payment completion

3-Room Flats:

• Floor Area: Typically 60-70 sqm (650-750 sqft)
• Layout: 2 bedrooms, 1 bathroom, living/dining area
• Target Buyers: Young couples, small families
• Price Range: Generally most affordable option

4-Room Flats:

• Floor Area: Typically 90-100 sqm (970-1,080 sqft)
• Layout: 3 bedrooms, 2 bathrooms, living/dining area
• Target Buyers: Growing families, most popular choice
• Price Range: Mid-range pricing, good resale value

5-Room Flats:

• Floor Area: Typically 110-120 sqm (1,180-1,290 sqft)
• Layout: 3 bedrooms, 2 bathrooms, larger living area
• Target Buyers: Larger families, higher income households
• Price Range: Higher pricing, spacious living

Executive Flats:

• Floor Area: Typically 130-140 sqm (1,400-1,500 sqft)
• Layout: 3 bedrooms, 2 bathrooms, study room
• Target Buyers: High-income families, premium choice
• Price Range: Highest pricing, largest space

HDB Concessionary Loan:

• Interest Rate: 2.6% per annum (as of 2024)
• Loan Quantum: Up to 80% of purchase price or valuation
• Loan Tenure: Up to 25 years or age 65, whichever is earlier
• Eligibility: Must meet HDB's income and citizenship criteria

Bank Housing Loans:

• Interest Rates: Variable rates, typically higher than HDB
• Loan Quantum: Up to 75% of purchase price or valuation
• Loan Tenure: Up to 30 years, subject to age limits
• Flexibility: More flexible terms and faster processing

CPF Usage:

• Ordinary Account: Can be used for down payment and monthly payments
• Usage Limit: Up to Valuation Limit (VL) or purchase price
• Accrued Interest: Must be returned with 2.5% interest upon sale
• Remaining Lease: Minimum 20 years for CPF usage

Impact on Loan Eligibility:

• Minimum 20 Years: Required for CPF usage
• Bank Requirements: Most banks prefer 60+ years remaining
• Loan Tenure: Cannot exceed lease remaining period
• Age Factor: Borrower's age plus loan tenure considerations

Impact on Property Value:

• Depreciation Curve: Steeper depreciation as lease shortens
• 80-Year Mark: Significant impact below 80 years
• 60-Year Mark: Major impact on financing and value
• Future Resale: Consider impact on future buyers

Lease Buyback Scheme:

• Eligibility: For flats with short remaining lease
• Process: Sell remaining lease back to HDB
• Proceeds: Use proceeds to buy smaller flat or rent
• Conditions: Subject to HDB's terms and conditions

Legal Fees:

• Conveyancing: $2,000 - $3,000 for legal services
• Disbursements: Additional costs for searches and registrations
• GST: 9% GST on legal fees
• Complexity: Higher fees for complex transactions

Survey and Valuation:

• HDB Valuation: $120 for official valuation
• Private Valuation: $400 - $600 for bank requirements
• Survey Fees: $400 - $600 for property survey
• Timing: Usually required before loan approval

Other Costs:

• Fire Insurance: Mandatory for HDB flats
• Home Insurance: Optional but recommended
• Renovation: Budget $20,000 - $80,000 depending on scope
• Moving Costs: Professional movers and utility connections

Rental Yield Potential:

• Rental Market: Strong demand for HDB rentals
• Yield Range: Typically 3-5% gross rental yield
• Location Factor: Central locations command higher rents
• Tenant Profile: Mix of locals and expatriates

Capital Appreciation:

• Long-term Trend: Generally positive over long term
• Cyclical Nature: Property cycles affect short-term performance
• Location Premium: Prime locations appreciate faster
• Lease Decay: Consider impact of reducing lease

Risk Factors:

• Policy Changes: Government housing policies
• Interest Rate Risk: Rising rates affect affordability
• Economic Cycles: Recession impact on property values
• Oversupply Risk: New supply affecting prices

What is cash over valuation (COV)?

COV is the amount you pay above HDB's official valuation. This must be paid in cash and cannot be financed through loans or CPF. COV reflects market demand and can vary significantly by location and property type.

How much cash do I need for HDB resale purchase?

You need cash for down payment (typically 20-25%), COV, stamp duty, legal fees, and other costs. Total cash requirement can range from $50,000 to $150,000 depending on the property price and COV.

Can I use CPF for HDB resale purchase?

Yes, you can use CPF Ordinary Account funds for down payment and monthly loan payments, subject to the Valuation Limit and minimum lease remaining of 20 years.

What happens if the valuation is lower than the resale price?

You'll need to pay the difference (COV) in cash. You can also renegotiate the price with the seller or withdraw from the purchase if the COV is too high.

How long does the HDB resale process take?

The entire process typically takes 8-12 weeks from Option to Purchase to key collection, including loan processing, legal work, and HDB administrative procedures.