The million-dollar HDB market in Singapore has reached unprecedented heights in 2024, with 1,003 resale flats transacted at million-dollar prices as of 26 December, surpassing the previous record of 938 units in 2023. This remarkable growth highlights not only the evolving aspirations of buyers but also significant shifts in Singapore’s public housing landscape. As demand for unique, well-located flats continues to rise, the premium HDB segment has become a focal point for discussions on housing affordability, market stability, and public housing policies.
A Decade of Growth in Million-Dollar Transactions
The growth of million-dollar HDB resale transactions over the past decade has been nothing short of exponential. From just two transactions in 2012 to over 1,000 in 2024, this segment has expanded nearly 500-fold in 12 years, as seen in Figure 1 above. December alone contributed 63 such sales, accounting for approximately 6.2% of the year’s total million-dollar transactions.
This trend reflects a broadening appeal for premium HDB flats beyond traditional hotspots. Mature estates like Kallang/Whampoa, Toa Payoh, and Bishan continue to dominate, but emerging towns such as Tampines and Sengkang have begun making their mark. Kallang/Whampoa topped the list in 2024 with 149 transactions, nearly tripling its 2023 figure of 54. Toa Payoh followed closely with 139 transactions, more than doubling its 2023 total of 56. Tampines, from just two transactions in 2023 to 22 this year, represents a significant shift in buyer preferences. Meanwhile, Sengkang recorded its first-ever million-dollar transactions, with four units crossing the threshold.
In addition, 2024 also marked the first time a 3-room HDB flat hit the near million-dollar threshold, at approximately $990,000. Four other units that hit the million–dollar mark were Terrace model type under HDB.
Conversely, towns like Choa Chu Kang, Jurong West, and Sembawang have yet to join the million-dollar club, but growing demand suggests it is only a matter of time. These developments highlight how the million-dollar HDB market is no longer exclusive to central or traditionally sought-after locations.
What Makes a Million-Dollar Flat?
Million-dollar HDB flats typically carry attributes that set them apart from standard units. Prime locations, proximity to MRT stations and amenities, high floors, commanding views, and larger layouts are common characteristics. Units at St. George’s Towers in Kallang/Whampoa, for instance, accounted for 45% of the town’s million-dollar transactions in 2024, reflecting the value buyers place on newer leases and central locations. Similarly, high-demand flats in Tampines and executive units in Compassvale Lane, Sengkang, highlight the growing appetite for premium units with unique features.
Interestingly, flats with leases commencing in 2013 or later made up 342 (34.1%) of the million-dollar transactions recorded in 2024. This underscores a growing preference for newer units with longer remaining leases, a factor increasingly important in determining value.
Record-Breaking Sales in 2024
In 2024, the market witnessed several record-breaking transactions that redefined the top end of the HDB resale market. The most expensive transaction was a five-room flat at SkyOasis @ Dawson in Queenstown, which sold for $1.73 million in July. This 1,195 sq ft, 45th-floor corner unit exemplifies the type of rare properties that command premium prices. Earlier in the year, two other flats briefly held the record at $1.588 million each—one at City Vue @ Henderson and another at Boon Tiong Road in Bukit Merah.
Even four-room flats saw record psf prices, with a unit at The Pinnacle @ Duxton selling for $1.45 million or $1,448 psf in June. These transactions highlight the willingness of buyers to compete for exceptional units, even in a challenging interest rate environment.
Resale and Rental Market Dynamics
The rise of million-dollar HDB flats coincides with a broader surge in HDB resale prices. The HDB Resale Price Index (RPI) rose by 6.9% in the first nine months of 2024, compared to a 4.9% increase in 2023. Supply constraints contributed significantly to this growth. In 2024, an estimated 11,952 flats achieved their Minimum Occupation Period (MOP), down 23.1% from 2023. Supply is expected to tighten further in 2025, with only 6,976 flats projected to reach MOP—the lowest in 11 years.
On the rental front, HDB flats outperformed private rentals, with executive flats recording a 7% year-on-year increase in rents compared to a marginal 0.1% growth in the private rental market. This divergence highlights the growing appeal of HDB rentals as cost-effective alternatives for expatriates and local families.
Cooling Measures and Policy Adjustments
In response to soaring prices, the government introduced cooling measures in 2024, including reducing the Loan-to-Value (LTV) limit for HDB loans from 80% to 75%. However, these changes have had limited impact on the million-dollar market, which largely comprises buyers less reliant on HDB loans. To support first-time buyers, the Enhanced CPF Housing Grant (EHG) was increased to up to $120,000 for eligible families, aiming to enhance affordability in the resale market.
New BTO Classification and 2025 Launches
The introduction of a new BTO classification system in October 2024 marked a significant shift in public housing policies. Flats are now classified as Standard, Plus, or Prime, with stricter resale conditions applied to Plus and Prime units. These include a 10-year MOP, subsidy clawback upon resale, and an income ceiling of $14,000 for resale buyers.
In 2025, HDB plans to launch approximately 17,290 BTO flats, down 12% from 2024. The February exercise will feature 5,000 flats in locations like Kallang/Whampoa and Queenstown, which are expected to include Prime flats. Meanwhile, the February Sale of Balance Flats (SBF) exercise will be the largest ever, offering over 5,500 units, 40% of which will be move-in ready.
Impact on Market Dynamics
The tighter supply of MOP flats in 2025 and the new BTO classification framework are likely to influence buyer behaviour. Flats classified as Prime and Plus may push some buyers toward Standard BTO flats or the resale market, where restrictions are less stringent. Analysts expect HDB resale price growth to slow, with projected increases of 4% to 8% in 2025 compared to an estimated 10% in 2024. This deceleration reflects affordability concerns and the expectation that prices may have peaked in many locations.
2025 Projections: Robust Demand
Despite these measures, the million-dollar HDB market is expected to remain robust, with up to 1,200 of such transactions projected in 2025. Key developments completing their MOP next year, such as Alkaff Courtview in Bidadari and Clementi Crest, are likely to add to the tally.
Conclusion
The rise of million-dollar HDB flats in 2024 reflects Singapore’s evolving housing landscape and underpins the aspirational demand alongside affordability challenges. As we move into 2025, the focus will shift to managing supply constraints and maintaining affordability while meeting the diverse needs of buyers.
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