Understanding the $1.5 Million Threshold

The $1.5 million figure has become a significant psychological milestone, especially as the once-astonishing million-dollar flats have now become commonplace. As of late 2024, the average resale price for private condominiums hovers around $1,680 per square foot, meaning a typical 900 sq. ft., three-bedroom resale condo is priced at approximately $1.51 million. This comparison highlights the narrowing gap between public and private housing, shedding light on a potential shift in housing policies.

The Elite Circle of $1.5 Million Flats

As demand for luxurious living spikes, certain districts are now dominating this exclusive price bracket. The highest recorded resale flat currently stands at an astounding $1.73 million for an apartment located at SkyOasis @ Dawson, surpassing expectations even beyond the renowned Pinnacle @ Duxton.

While flats worth a million dollars exist in almost every HDB town, those hitting the $1.5 million threshold are limited to specific, high-demand areas such as the Central Area (like Cantonment Road), Bukit Merah, Bishan, and Toa Payoh. These districts have seen a trend where potential homeowners may need to turn towards Prime BTO (Build-to-Order) flats to secure a home, signaling an approaching crisis in affordable housing.

Size Matters: The Resale Flat Landscape

Interestingly, the nature of the flats reaching these luxurious price points reveals a trend towards larger living spaces. The list includes predominantly 5-room or executive flats, indicating that buyers often pursue bigger units even if they might not need the extra space. This behavior stems from the perception that larger flats hold better resale value, further amplifying the demand and investment in these expansive properties.

The Rise of Non-Standard Flats

Several high-priced flats belong to the Design, Build, and Sell Scheme (DBSS), which has garnered mixed reviews for its quality. Still, certain attributes—such as premium locations or additional features like an extra bathroom—appeal to buyers. Even so, when comparing similar price ranges, many may find better quality options in Executive Condominium (EC) units, raising questions about buyer priorities in this competitive market.

The Allure of Proximity and Newness

Many of the flats exceeding the $1.5 million threshold maintain a significant amount of their lease—often between 85 to 90 years—making them attractive investments. These properties, located in central areas, offer a blend of convenience and longevity that buyers view as contributing factors to their high price points.

Interestingly, most of these lavish flats are not located on lower floors, emphasizing the value placed on views and privacy among potential homeowners. The trend towards higher floor units suggests a preference for elevated living experiences, which often include breathtaking views.

The Future of Resale HDB Flat Prices

As we navigate through 2025 and beyond, it remains to be seen if these exceptional resale prices will continue to climb, particularly given the increased production of HDB units following the COVID-19 pandemic. The anticipated introduction of new models, Plus and Prime, is expected to reshape this landscape and potentially influence prices in these coveted areas.

As the market evolves, prospective homeowners and investors alike will need to keep an eye on these developments, with the understanding that the landscape of HDB housing is transforming dramatically before our eyes. Will the price increases continue, or is this just the beginning of a new era in Singapore's real estate market? Stay tuned!