HDB is an apartment’s valuer when it comes to purchasing a condo. This applies even if you take a bank loan or HDB housing loan. It basically means HDB has to value all HDB resale transactions before the sales can continue.
If the resale price is higher than HDB valuation, you must pay for the difference between the resale price and valuation (i.e., COV) using cash only.
HDB valuation process involves it using the market value of similar condos in the same area. It then assigns a valuer to determine the living space’s actual valuation.