Why Demand for Older HDB Flats Is Still Very High as Market Share Hits 28.5% in H1 2026

The number of resale transactions involving flats at least 40 years old jumped more than fivefold, from 1,223 units in 2015 to 6,815 in 2025, hitting a record high. In the first half of 2026, sales of older flats remained resilient with 3,490 transactions, almost on par with the 3,570 transactions in the first half of 2025 and surpassing the 3,032 units sold in the same period in 2024.

This stands in contrast to newer flats. Resale transactions of flats less than 10 years old have been falling steadily, from 3,665 units in the first half of 2024 to 2,938 units in the same period in 2025, and further to 2,322 units in the first half of 2026.

In terms of market share, older flats now account for the largest proportion of total sales. In 2015, older-flat transactions made up just 6.9 per cent of all resale transactions. A decade later, the market share of older flats had surged to 27.2 per cent, and rose further to 28.5 per cent in the first half of 2026. This means that almost one in three resale flat transactions now involves an older flat.

Who is buying older flats now? Sales advisers have observed a few buyer profiles: retirees, older singles, mature families, newly minted citizens and permanent residents. Retirees and older singles form a substantial group when they choose to move to smaller or older resale flats after selling their condominiums, landed properties, or large resale flats.

Some bought maisonettes, jumbo flats, or HDB landed terraces, while others chose smaller two- or three-room resale flats that are still larger in size compared with newer models. For these buyers, many have no intention of passing the older flat to anyone and plan to stay for the long term or until the end of the lease. Therefore, lease decay is not a pertinent issue, since they may not need to find a future buyer.

The pricing of older flats makes them attractive. A spacious 104 sq m four-room resale flat in Yishun Street 22 was sold for just S$265,000 in July. A centrally located 64 sq m three-room resale flat in Toa Payoh was transacted at S$288,000 a month earlier. Several two-storey maisonettes were sold for under a million dollars this year, offering spacious living areas that a similarly sized private property would cost more than S$2 million in today’s market.

Previously, when the 15-month wait-out period was in force, demand for bigger flats, especially five-room and executive flats, fell. Transactions subsequently rose as buyers returned to the market after 15 months, indicating that large resale flats were particularly affected by the policy change. The removal of the 15-month wait-out period will likely see the opposite effect, as many private home owners are expected to return to the HDB resale market. As private home owners are usually cash-rich after selling, some may buy older resale flats for the space and value.

Seniors can monetise their properties through HDB’s Lease Buyback Scheme, selling part of their flats’ leases to HDB while continuing to live there. Proceeds from selling part of the lease can be used to top up Central Provident Fund retirement accounts, boosting lifelong monthly retirement payouts if enrolled in the CPF LIFE scheme.

The VERS or Voluntary Early Redevelopment Scheme, announced in 2018, has also improved people’s perception of older flats. If certain flats are selected for VERS, owners can vote whether to sell them back to the Government before the 99-year lease expires.

While demand for older flats will likely stay resilient, buyers should weigh several factors carefully. Renovation and upkeep costs for an older flat can range from S$30,000 to S$100,000, depending on the size and extent of wear and tear. Other costs may involve more extensive rectification beyond cosmetic repairs, such as changing electrical wiring and re-tiling bathrooms, kitchens, and toilets.

Buyers with insufficient cash may encounter additional challenges. Bank loan limits typically drop sharply as leases depreciate. Buyers cannot utilise their CPF savings to service the mortgage if the flat does not cover the youngest buyer up to age 95, which may result in a higher cash outlay to finance the purchase. Moreover, should they decide to exit the market, the next buyer may face difficulty getting a home loan due to the age of the flat.

Nevertheless, right-sizing to smaller or older flats is generally a prudent move, especially for older sellers. Home owners can unlock significant housing equity from their existing assets and eliminate large mortgage debts. The move can boost retirement funds and free up cash for future healthcare expenses and personal enjoyment.