The recent sale of a five-room DBSS flat at 519D Tampines Central 8 for $1.068 million (about $919 per square foot) has made headlines — not just for its price, but for what it reveals about the evolving value drivers of HDB resale flats. As Singapore’s public housing continues to serve a dual role — shelter and (increasingly) asset — it is timely to ask: what really makes an HDB flat “tick” in today’s market? And, more importantly, how should homebuyers and BTO applicants think about their decisions — not as speculative investors, but as people seeking a home?
Why Tampines Keeps Showing Up in Record Deals
Tampines is no stranger to million-dollar flats. Why does this estate keep delivering record prices?
It is a regional centre: good mix of public amenities, retail, transport. People want to live there because everything is more accessible.
DBSS presence: there are multiple DBSS projects in Tampines (including Centrale 8, The Premier @ Tampines) which contribute premium choices in supply.
Schools and family friendly environment: For families, being near reputable schools, parks, places for outdoor activities matter. Tampines has several primary schools within walking distance in many areas.
Rarity + long leases: Many of the newer resale flats in Tampines are only just past their MOP, so lease years are still large.
What Makes HDB Resale Units “Tick”
Several key attributes are repeatedly rewarded in resale HDB markets. The Tampines deal illustrates many of them clearly:
Location, Location, Location
The flat is in a mature estate — Tampines — with excellent connectivity (MRT lines, bus interchanges), strong retail, recreation and community infrastructure (Our Tampines Hub, malls, parks). These aren’t luxuries: proximity to amenities lowers daily friction, which many buyers prize.
Lease Remaining / Age of Flat
The lease of the flat is long — 88 years remaining — as the lease commenced in 2014. Flats with longer lease terms tend to hold better value. By contrast, even within comparable DBSS or HDB flats, those with shorter remaining leases often see lower per square foot prices, less demand, and more risk of depreciation. Lease decay (more later) is not just theoretical — it has quantifiable impact.
Floor Level / View / Storey Premium
The $1.068M flat is on the 13th-15th storeys. Higher floors often command better views, more natural light, less noise, and sometimes better ventilation — all of which contribute to buyer willingness to pay a premium.
Project/Development Type: DBSS vs Ordinary HDB
DBSS flats were built under the Design, Build and Sell Scheme, where private developers bid for land, design and build the flats, giving more flexibility in layout, finishing, design features. These flats tend to have more premium aspects than standard HDB builds — larger interiors, sometimes more windows, perhaps better common spaces. Although no new DBSS projects are being launched (scheme was discontinued around 2011–2012), existing DBSS flats remain popular.
Supply / Rarity + Town Maturity
In mature estates like Tampines, supply of large, premium flats with long leases is limited. DBSS adds further scarcity, since there are only 13 DBSS projects nationally. When flats combining these desirable traits appear in the resale market, especially in mature towns with excellent amenities, demand tends to push prices higher.
Neighbourhood and Schools
For many families, the quality and proximity of schools are a major factor when choosing a flat. Good schools—especially primary schools within a 1KM radius—add both practical convenience and peace of mind, and contribute to the emotional value of a home. In the case of the flat at Centrale 8, Tampines, several primary schools lie within easy reach, helping to explain part of its appeal:
These schools are part of what makes the area around Centrale 8 attractive to families: the confidence that schooling for young children is not only available, but accessible without long travel.
Reading Between the Numbers: What the Record Price Doesn’t Necessarily Imply
While $1.068 million is headline-grabbing, it doesn’t mean every 5-room flat in Tampines, or every DBSS flat, is going to reach that. Some nuance:
The “Home First” Perspective: Why Speculation Is Risky
It is understandable that people look at million-dollar HDB flats and feel tempted to think of these properties as investment first. But that mindset has risks and maybe misaligns with what HDB housing was designed for.
HDB flats are public housing first – meant to give Singaporeans stable, affordable homes. Policies like Minimum Occupation Periods (MOP), income ceilings (for new flats), eligibility rules, and grants are designed with that in view. DBSS flats adhere to many of the same eligibility conditions.
Market value is not the same as wellbeing. Homes fulfil social, emotional, family, lifestyle needs — proximity to family, schools, amenities, suitable layout — all matter as much or more than pure ‘price appreciation.’
Speculation assumes continued capital gains. But lease decay, changes in policy, supply dynamics could erode value. A home bought hoping to flip for a profit may turn into a property whose resale value is less than expected, especially if factors (lease, maintenance, desirability) weaken.
Over-stretching financially for “premium” features (high floor, better view) may hurt quality of life (bigger mortgage share, less flexibility) if market turns.
Lease Decay: What Buyers Must Understand
“Lease decay” is one of those technical concepts that often gets glossed over until it becomes a problem. But it matters.
What is it? As the flat’s lease depletes, the “time” asset part of the property diminishes. Buyers care about remaining years because that affects how long they can enjoy the flat, how many future buyers there might be, and the flat’s potential resale value.
Tipping points: Some research shows that when lease reaches half of the 99-year tenure (~50 years remaining), the value may drop relatively significantly. When lease remaining dips below certain thresholds, e.g. 40–30 years, buyers may find financing harder, valuations become less favourable.
What this means in practice: For relatively new flats (like the Tampines one, with ~88 years left), lease decay is almost negligible, and the flat has decades of “value buffer.” But as flats age, you need to price that in: invest more in well-maintained flats, in locations with strong demand, so depreciation from lease is offset by location, amenity, etc.
Advice for Resale Buyers: What to Look for, What to Prioritise
To make a wise decision when buying in the resale market:
Check remaining lease very carefully
Ask: how many years left? What does that imply for financing / resale in future?
Think beyond the flat itself
Consider the surroundings: transport, shops, parks, schools. Even “premium flat” features like better views or higher floors are worth paying for only if they combine with good amenities.
Evaluate total cost, not just price
Mortgages, additional maintenance (if older project), possibility of renovations / defects (especially in older DBSS flats). Also consider potential resale value: how many people will desire this particular flat in 10-20 years?
Understand policies and financing constraints
When buying a resale flat, it’s important to look beyond the sticker price. Check how CPF Housing Grants can offset costs, be mindful of the Ethnic Integration Policy (EIP), and understand how lease balance affects loan eligibility and CPF usage. The relationship between lease decay and financing can shape affordability just as much as location or size.
Inspect the condition
DBSS flats tend to have better finishes, but some older DBSS projects had issues (workmanship, maintenance). Walk through the flat, check water seepage, walls, fittings. Condition can swing value significantly.
Take-Home Reflections
The $1.068 million sale in Tampines is not merely about the “rich buying up HDBs.” It is an illustration of how multiple value drivers converge: long leases, premium project type, good location, amenity access, and strong demand in a mature town. For those buying, what matters is not chasing record prices but anchoring decisions in the attributes that sustain value over time.
Homes are for living, for raising families, for community — not just for flipping or profit. That doesn’t mean resale or BTO flats have no investment potential. But making decisions as a homeowner first tends to lead to more sustainable satisfaction, both financially and personally.
Conclusion
The recent record at Centrale 8 Tampines shows what “premium” in HDB resale looks like in 2025: long lease, high floor, great location, mature estate, DBSS finish. But it also serves as a reminder: for most buyers, the wisest path is to treat homes as homes. Choose what fits your life now and will serve you in years to come. Value comes not just from what you paid, but how well the place works as your home.
Every HDB journey is unique — from choosing the right flat to understanding policies and financing. If you’d like expert guidance tailored to your situation, our sales consultants are ready to walk you through the resale market and help you make decisions with confidence. Reach out to us today to start the conversation.
