Property Valuation in Singapore: What Happens When the Bank Values a New Launch Below Price

Property valuation in Singapore matters most at one moment: when the bank decides how much it will lend. If its valuer puts the unit below the price you agreed, your loan shrinks and the gap comes out of your pocket, in cash. This guide explains how that works for a new launch, what it costs, and the steps buyers can take, using illustrative figures for LinkTown Residences (Hougang Central Residences) at Hougang Central.

How banks value a condo

When you apply for a housing loan, the bank asks a licensed valuer, usually from its own panel, to give an opinion of the unit’s market value. For a private condo, the valuer mostly looks at:

• Comparable sales: recent transactions in the same project and similar projects nearby, adjusted for size, floor, facing and age.
• The unit itself: stack, level, view, layout and any premium the developer has priced in.
• The market direction: whether recent sales in the area are rising or softening.

The loan is then worked out on the lower of the purchase price and that valuation. The same “lower of” rule sets the CPF Valuation Limit, which caps how much CPF you can use.

Why a new launch can value below price

With resale homes, buyers in Singapore often talk about paying “over valuation”. With new launches it is less talked about but can still happen, for reasons such as:

• Few comparables at the start. On launch weekend, the only reference points may be other units in the same launch and older condos nearby, which usually transact at lower psf.
• Premium units. High floors, corner stacks and units with open views carry a premium over the project average. A valuer may not credit all of it.
• A new benchmark for the area. Where a launch prices well above existing resale, as a new integrated project in an older estate may, some valuers are cautious until the market has confirmed the level.
• Market shifts between booking and loan approval. If sentiment softens in the weeks after booking, valuations can follow.

For context, older Hougang resale condos have averaged roughly S$1,460 to S$1,900 psf over the past 12 months, based on reported transaction data, while analysts expect Hougang Central Residences to average about S$2,500–2,600 psf. That gap is normal between new and older projects, but it is exactly the kind of spread a valuer weighs. Our condo prices 2026 guide lists the benchmarks.

What a shortfall costs: worked example

	Valuation = price	Valuation S$45,000 below price
Purchase price	S$1,695,000	S$1,695,000
Bank valuation	S$1,695,000	S$1,650,000
Maximum loan (75% of the lower figure)	S$1,271,250	S$1,237,500
You pay in total	S$423,750	S$457,500
Of which must be cash (5% of valuation plus the shortfall)	S$84,750	S$127,500
BSD (on the higher of price or value)	S$54,350	S$54,350

A S$45,000 valuation gap costs this buyer S$33,750 more in total upfront (the lost loan), and raises the cash-only portion by S$42,750. Stamp duty does not fall, because IRAS charges it on the higher of price and market value.

Use the calculator to see how a smaller loan changes the monthly instalment:

When valuation happens on a new launch

1. Before booking: get an in-principle approval (IPA). It confirms how much the bank will lend on your income, but it is not a valuation of a specific unit.
2. Booking day: you pay the 5% booking fee and receive the Option to Purchase.
3. Loan application: the bank values the unit you booked and issues a letter of offer.
4. Sale and Purchase Agreement: the 15% payment is due about eight weeks from the option date. You want the loan and valuation settled before this.

The purchase timeline shows these steps in order for LinkTown Residences.

Your options if the valuation comes in low

• Ask another bank. Different banks use different valuers. A second opinion before you accept a loan offer is common.
• Request a review. Your banker can ask the valuer to reconsider with better comparables, such as other units sold in the same stack or level.
• Pay the gap in cash. If the difference is small and you have the cash, many buyers simply absorb it.
• Adjust the loan. A different tenure or package does not change the LTV cap, but it can change your instalment and TDSR position. See fixed vs floating home loans for the package choice.
• Walk away, with a cost. If you do not exercise the option, part of the booking fee is forfeited under the developer sale rules. Ask your lawyer how much before booking.

Related rules to check

• Condo down payment: cash and CPF minimums by LTV.
• Home loan guide: how banks assess and disburse loans for uncompleted projects.

Register to get LinkTown Residences prices by stack as soon as they’re released, so you can check valuations with your bank early.

Frequently asked questions

What happens if the bank valuation is lower than the purchase price?

The bank lends on the lower of the price and its valuation, so the maximum loan shrinks. You pay the difference between price and valuation in cash, plus the normal down payment on the valuation. CPF use is also capped by the lower figure.

Can I use CPF to pay a valuation shortfall?

No. CPF use for property is limited by the Valuation Limit, the lower of the price and the valuation, so the amount above valuation has to be paid in cash. Check your own limits with CPF Board.

Is stamp duty charged on the price or the valuation?

IRAS charges stamp duty on the higher of the purchase price and market value. A lower bank valuation does not reduce your stamp duty.

Do new launch condos get valued below price?

It can happen. Valuers rely on comparable transactions, and a unit priced above recent sales in the project or nearby, such as a top-floor or corner unit, may be valued lower. Ask your banker for an indicative valuation before you commit.