Q: Why are there so many million-dollar HDB flats now?
A: Over the past few years, the number of HDB flats transacting at over $1 million has increased significantly. From 2014 to 2020, these transactions remained below 100 annually. However, this number surged to 951 in the first 11 months of 2024 alone.
This trend reflects the broader appreciation of HDB resale prices, with an average price increase of 39.2% since 2020, reaching $600 psf today. Furthermore, external factors, such as the widening price gap between resale HDB flats and 99-year leasehold condos (currently $1,039 psf), have made these flats a comparatively more affordable option for well-located properties.
Q: What are the main reasons behind this trend?
A: Several factors drive this phenomenon:
- Location & Amenities: Towns like Bukit Merah, Kallang/Whampoa, and Toa Payoh are in prime central regions, close to the CBD and Orchard Road, and offer established residential amenities.
- Policy Impact: The reclassification of BTO flats under stricter "Prime" or "Plus" categories has made resale flats in prime towns more attractive due to fewer restrictions and shorter waiting times.
- 15-Month Wait-Out Period: Introduced in 2022 for private property owners buying resale HDBs, this policy's expiration for many buyers in 2024 created a surge in demand from cash-rich purchasers.
- Rising Market Prices: The overall increase in HDB resale prices, fueled by limited supply and high demand, has naturally pushed more flats past the $1 million mark.
Q: Which HDB towns recorded the most million-dollar deals?
A: The top-performing towns are:
- Bukit Merah: 239 million-dollar transactions since 2022, with 124 occurring this year. Flats here benefit from proximity to the CBD, eight MRT stations, and popular amenities like Tiong Bahru Plaza and VivoCity.
- Kallang/Whampoa: 232 transactions since 2022, with 147 this year. The area’s strong connectivity via nine MRT stations and central location make it a highly sought-after district.
- Toa Payoh: 210 transactions since 2022, with 104 this year. Despite having older flats (average age of 39 years), its well-developed infrastructure and convenience continue to attract buyers.
Q: Why are towns like Tengah, Choa Chu Kang, Jurong West, and Sembawang absent from this trend?
A: These towns, located farther from the city center, have seen lower demand and prices. For example:
- Tengah is a new town where flats have not yet reached the Minimum Occupation Period (MOP).
- Choa Chu Kang, Jurong West, and Sembawang remain affordable options for budget-conscious buyers due to their suburban locations and slower price appreciation.
Q: What are some record-breaking deals in these towns?
A:
- Bukit Merah: Two five-room flats sold at $1.588 million each in 2024. These flats were located at Henderson Road and Boon Tiong Road, boasting long remaining leases of 90+ years and close proximity to key amenities.
- Kallang/Whampoa: A five-room flat at City View @ Boon Keng transacted for $1.45 million in 2024, with high floors and accessibility to MRT stations and amenities driving its value.
- Toa Payoh: Five flats at The Peak @ Toa Payoh fetched at least $1.5 million, thanks to their younger age (12 years), proximity to MRT stations, and remaining leases of 87 years.
Q: What can buyers take away from this trend?
A:
- Prime towns like Bukit Merah, Kallang/Whampoa, and Toa Payoh are experiencing a sharp increase in demand, with record-breaking prices.
- Buyers looking for value can explore towns farther from the city center, such as Tengah, Choa Chu Kang, or Sembawang, which remain affordable alternatives.
- Flats with strong connectivity, modern amenities, and longer leases often achieve higher resale values.
Summary: Key Highlights
- The number of million-dollar HDB resale transactions has surged to 951 in 2024 (Jan–Nov).
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Top towns for million-dollar flats:
- Bukit Merah (239 transactions since 2022, $769 psf average price).
- Kallang/Whampoa (232 transactions since 2022, $741 psf average price).
- Toa Payoh (210 transactions since 2022, $694 psf average price).
- Factors driving the trend include central location, amenities, policy impacts, and overall price growth.
- Record-breaking flats often feature prime locations, long leases, and proximity to transport and amenities.
If you’d like to explore million-dollar HDB flats or learn about emerging trends in the resale market, feel free to reach out! Whether you’re planning to buy, sell, or simply stay updated, I’m here to guide you every step of the way.