HDB Home Value

HDB Home Value

Open now: HDB Home Value tool

Real Estate Valuation

Real estate valuation is the process of determining the current market value of a property. It is crucial for buyers and sellers to make informed decisions, like setting competitive prices, securing financing, and assessing investment potential.

For prospective buyers seeking to finance their property purchases, property loan eligibility are critical considerations. Lenders assess loan eligibility based on factors such as income, credit score, debt-to-income ratio, and the property’s value. Property valuation directly impacts the amount a lender is willing to finance, as it determines the collateral’s worth. Accurate property valuation enhances the chances of obtaining a favorable loan offer.

There are three main approaches to real estate valuation:

  • Sales comparison approach: This approach compares the property to similar properties that have recently sold in the same area. Adjustments are made for differences in location, size, age, condition, and other factors.

  • Cost approach: This approach estimates the cost of replacing the property, minus depreciation.

  • Income approach: This approach estimates the present value of the property’s future income stream.

At HDB Home Value, we use the sales comparison approach to value properties. We collect data on recent sales of similar properties in the area and use this data to estimate the value of the property you are interested in. We do not consider the property’s design, renovation, or interior condition, as these factors can vary widely and are difficult to quantify. Our focus is on providing users a swift and informative valuation based on key property attributes.

Using HDB Home Value Tool

  1. Enter the information accordingly:

    • Block and Street Name
    • Flat Type
    • Area (sqm)
    • Floor Level

    To account for the wide range of building heights, we simplified the way we assess relative floor levels:

    • Low: 1st to 4th/5th
    • Mid: 4th/5th to 9th/10th
    • High: 10th to 15th
    • Very High: 16th to 26th/27th
    • Extremely High: 26th/27th onwards

  2. Click “Show” button to display the report.

The report shows:

  1. The Indicative Value

  2. Building Details:

    • A Pie Chart showing the Breakdown of Units by Flat Type
    • Total Units sold by HDB
    • Highest Floor Level
    • Completion (Year)
    • Lease Commencement (Year)
    • Remaining Lease (Estimated no. of years)

  3. Recent Sales of Similar Properties on the Same Street in the Past 3 Years

  4. Prices of properties sold over time, plotted as a scatter plot.

Whether you’re navigating the HDB market, considering a house loan, or collaborating with a realtor, understanding property valuation empowers you to make sound choices. Reach out to our real estate agents on our website for tailored help with your property needs.

Return to TOOLKIT, or goto HDB Home Value tool

Buyers  Sellers 

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