The HDB resale market in Singapore is witnessing an exceptional surge with transactions exceeding one million Singaporean dollars. This trend is rapidly changing the market scenario for buyers and sellers, extending beyond traditional prime areas to encompass all corners of the island.
As a result, it is essential for anyone navigating the HDB resale market to comprehend the underlying dynamics.
Additional reading: Million Dollar HDBs: The new norm for public housing in Singapore?
The final frontier: Last towns to join the million-dollar club
The HDB towns of Jurong West, Choa Chu Kang, Sembawang, and Sengkang remain the last strongholds in Singapore to have yet to see a resale transaction exceeding S$1 million.
However, as the current maximum resale prices hover near this mark – Sengkang at S$968,000, Jurong West at S$920,000, Choa Chu Kang at S$900,000, and Sembawang at S$850,000 – it’s not a matter of if these towns will join the million-dollar club, but rather when.
The table below was taken from a recent flash report on the HDB resale market:
Industry experts are confident that these areas are poised to make the leap, driven by a combination of factors including advancements in infrastructure and location advantages. This marks a new chapter in the HDB resale market.
The broader trend of high-value HDB resales
The recent rise of Toa Payoh as the town with the most million-dollar resale flats exemplifies a noteworthy shift in the current market dynamics.
This trend indicates that high-value HDB resales are no longer limited to central or traditionally prime areas.
Take a look at the resale volume trends in the graph below:
Rather, buyers are increasingly drawn to premium HDB flats in non-central locations due to unit size and layout, unobstructed views, and strategic upgrades.
Additional reading: These 9 neighbourhoods are hotspots for million-dollar HDB flats
Insights from the first quarter of 2024
A remarkable milestone was achieved in the first quarter of 2024, as a record number of 185 HDB resale flats were sold at a minimum price of S$1 million.
Toa Payoh, Kallang/Whampoa, Bukit Merah, and Queenstown were at the forefront of this trend. The noteworthy increase in million-dollar sales in Toa Payoh can be attributed to the emergence of new developments and high-end DBSS projects, which signify a shift in buyer preferences and a dynamic market environment.
What’s driving buyers towards million-dollar HDB flats?
The demand for non-mature estates is on the rise, as buyers are beginning to appreciate the benefits of living outside the bustling downtown area.
The market has seen a new wave of interest with the introduction of premium apartments and executive flats, some of which have reached their Minimum Occupation Period (MOP). The popularity of DBSS flats and other new developments, renowned for their generous floor plans and top-notch quality, is only adding to the momentum of this trend.
Future of the HDB resale market
As BTO flats are reclassified into Standard, Plus, and Prime categories, the HDB resale market is gearing up for a significant transformation. The new classification, along with resale restrictions on Plus and Prime flats, is expected to sway buyer preferences, potentially increasing the appeal of existing flats without restrictions.
The million-dollar HDB resale transactions are undergoing a facelift, with non-mature estates and previously unnoticed locations emerging as the new hotspots for lucrative investments. As this trend persists, potential buyers and sellers must stay informed and adapt to Singapore’s ever-changing property market dynamics.
Additional reading: 4 reasons why an HDB resale flat would fetch S$1m or more
With Singapore’s HDB resale market ushering in this new era, it’s evident that the rise in million-dollar transactions is more than a momentary fad—it symbolises changing preferences, evolving lifestyles, and the timeless allure of strategic investments in Singapore’s housing market. Whether you’re a prospective buyer or seller, keeping up with these trends will be vital in navigating the future of HDB transactions in the Lion City.
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