Mind the Gap: HDB Resale Prices Moderate but Million-Dollar Flat Transactions Spike to 491 in Q2

With HDB offering more housing in central locations to cater to demand, new flats coming up in such locations may be classified as Plus or Prime units under the new HDB framework. Buyers of Plus and Prime flats are subject to tighter conditions including a 10-year minimum occupation period (MOP), compared with five years for Standard and unclassified flats.

One factor that can drive interest in the public-housing resale market is that many high-earning local couples who cannot buy new executive condominium (EC) units may look to buy a resale HDB flat instead. The monthly household income ceiling for a couple is S$14,000 to buy a new HDB flat and S$16,000 to purchase an EC unit from a developer.

A local couple earning S$16,000 a month or S$192,000 annually may qualify to buy a new EC home. However, a new 900 square foot (sq ft) EC unit could cost around S$1.6 million or 8.3 times of annual income. In comparison, a resale HDB four-room flat with more than 90 years of remaining land lease costing S$1.2 million could offer more space, a superior location and better affordability.

Two, high-income permanent resident (PR) households may look to purchase premier resale HDB unclassified flats. While a PR couple cannot buy a new HDB home, a couple comprising partners who have been PRs for at least three years can buy HDB resale unclassified or Standard flats, excluding 3Gen flats.

Three, as the population rapidly ages, seniors could be an important source of demand for high-end resale HDB flats. Affluent retirees might trade private homes for public housing to free up capital to better ensure retirement financial adequacy. Also, the recurring costs of owning an HDB flat are generally lower compared with those of a condo unit.

Four, despite qualifying to buy new HDB flats, some young local buyers with access to liquidity may choose a premier resale HDB unclassified unit instead. With a resale flat, one generally gets a home to live in faster than with a BTO unit and avoids going through the lottery of the ballot to snare one’s dream flat.

Selected median resale prices for HDB 4-room flats in Q2 2026: Ang Mo Kio S$638,000; Bukit Merah S$944,000; Jurong West S$530,000; Punggol S$680,000; Queenstown S$1,035,000; Sembawang S$595,000; Toa Payoh S$1,019,000; and Yishun S$545,000.

The HDB index has risen 54 per cent compared with the fourth quarter of 2019. While resale flat prices moderate overall, the premier segment of the market continues to be strong. Resale volume in Q2 was up slightly versus Q1, but was down on a year-on-year basis. An increase in the supply of HDB Build-To-Order (BTO) flats, including units with shorter waiting times, has likely helped moderate demand for resale units.