Is Million-Dollar HDB Flats the New Norm?
The Million-Dollar HDB: From Rarity to Norm
In recent times, homeowners and property watchers have been startled by the increasing frequency of million-dollar HDB resale transactions. This once-rare phenomenon is now becoming a trend that many Singaporeans encounter almost daily in the news. Despite government efforts to introduce cooling measures, the surge in million-dollar HDB flats continues. From executive maisonettes (EM), executive apartments (EA), and 5-room flats, to even 4-room flats, the list of homes crossing the million-dollar mark is growing. The only hope is that 3-room flats (excluding HDB terrace homes) won’t follow suit.
Past History
Many might assume that Pinnacle@Duxton, Singapore’s iconic development in the heart of Tanjong Pagar, was where the first million-dollar HDB transaction occurred. However, this milestone actually took place in 2012. The historic transaction was for a 150 sqm executive flat located at Mei Ling Street in Queenstown, sold for exactly S$1 million. This sale set a precedent and signaled the beginning of what would eventually become the wave of million-dollar HDB homes we see today.
Source/ Credit: All charts in this post are from PropNex Research and URA.
Tabulating the total amount of million-dollar HDB flats in Singapore we can really see the ramp-up in transactions over the years. And we can also safely say we are expected to see 2024 surpass 2023 and double its figures based on its trajectory.
Where Are All These Homes Situated?
While the physical attributes of a home—its size, layout, and condition—are undeniably important, the saying “location, location, location” rings especially true in real estate. Most of the million-dollar HDB flats are located in central regions or on the fringes of Singapore’s city center. Areas like Bishan, Queenstown, and Toa Payoh, which are well-connected and rich in amenities, have become prime locations for high-value HDB transactions. Homes with unobstructed views, proximity to MRT stations, and those in heritage-rich neighborhoods command a premium, pushing their prices beyond the million-dollar threshold.
Every Town and Estate in Singapore Has Million-Dollar Homes?
Not quite yet. Out of Singapore’s 24 towns and 3 estates, four towns have yet to record a resale transaction above S$1 million: Choa Chu Kang, Jurong West, Sembawang, and Tengah. These areas are still developing and have more land available for future housing projects. However, they may eventually follow in the footsteps of other towns as Singapore’s real estate market continues to evolve.
The Newest Member: Sengkang
Sengkang has joined the club of million-dollar HDB towns. In June of this year, a unit at Compassvale Lane was sold for S$1 million, the first resale HDB in the town to hit that mark. It was an executive flat, large in size and located near many essential amenities, making it an attractive option for homebuyers seeking both space and convenience.
Prices of Non-Million-Dollar HDB Towns
While some towns haven’t reached the million-dollar milestone, it doesn’t mean their prices are low. Choa Chu Kang, Jurong West, Sembawang, and Tengah have seen increasing demand, and while their resale transactions haven’t crossed the S$1 million mark, prices have steadily climbed. These areas tend to attract younger families looking for more affordable housing options or those who appreciate living in quieter, less congested parts of Singapore.
As of now, the highest transacted prices for these towns are: Jurong West at S$980,000, Choa Chu Kang at S$907,888, and Sembawang at S$850,000. There is no transactional data available for Tengah yet, as it is a brand-new town, and residents only began moving in towards the end of 2023.
HDB Resale Price Growth Remains Strong
Mr Yip said: “With three more months to go in 2024, the number of million-dollar flats is likely to exceed 1,000 and reach 3 to 4 per cent of total market volume.”
Likewise, Mogul.sg’s chief research officer Nicholas Mak estimates about 990 to 1,000 million-dollar flats could be sold in 2024 to set a new record for the public housing resale market.
https://www.straitstimes.com/singapore/housing/hdb-resale-price-growth-remains-strong-even-as-volumes-fall-srx-99co
How will this affect the private residential market?
The million-dollar HDB trend reflects Singapore’s growing population, strong demand for housing, and the premium placed on living in desirable locations. While cooling measures are in place to prevent an overheating market, million-dollar flats are here to stay. The surge in million-dollar HDB flats is expected to prompt more buyers to consider upgrading to private homes, which could drive up demand in the private property market. As public housing prices climb, private properties may become more appealing, enhancing market confidence and potentially leading to an increase in private residential property prices.
Million-Dollar Case Study
Case Study 1 - Cash Out For Retirement
Case Study 2 - Upgrade From 5 Room To Executive Maisonette
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