A Skyrocketing Trend in HDB Prices

In Singapore, the resale HDB apartment market has become a hotbed of discussion and concern. Over recent years, a significant number of these apartments have crossed the S$1 million mark, with the first such sale recorded back in 2012. Once considered an anomaly, these transactions are rapidly becoming more common.

Thanks to soaring global inflation that began in 2022 and increasing demand for spacious housing—largely fueled by the pandemic and the work-from-home culture—the share of million-dollar apartment sales has exploded. What started as a mere 1% in 2022 has surged to over 6% in early 2025, doubling since the previous year.

A Changing Landscape

In 2024, alone, 1,035 HDB homes fetched over S$1 million. Additionally, more than 21% of transactions are now between S$750,000 and S$1 million, suggesting that even more apartments will likely join the million-dollar club soon. That accounts for over a quarter of all resale HDBs.

Why Rising Prices Might Be a Blessing

Despite rising anxiety among potential buyers, the continuous increase in housing prices could prove beneficial and even essential for the economy's health. Throughout history, as demonstrated by trends from 1979 to today, the rise in housing costs has typically paralleled improvements in living standards and income.

For perspective, the median household income has skyrocketed from under S$990 in 1979 to around S$11,297 today, growing nearly 12 times. In contrast, housing prices have also soared—where S$50,000 apartments became S$500,000 and S$100,000 ones turned into million-dollar entries.

Sustaining Affordability

Currently, with median transacted prices still under five times the annual household income, Singapore's HDB market remains one of the most affordable in the Asia-Pacific region. If house prices keep pace alongside rising incomes, affordability will stay consistent. The median price for a resale HDB in 2025 is approximately S$630,000. To breach the S$1 million mark, prices would need to surge by just 59%. If median incomes follow suit, it won't be as daunting.

Inflation: A Double-Edged Sword

While inflation often gets a bad rap, it may serve as a boon for homeowners with mortgages. As property values increase, borrowers find their debt burden less daunting, easing repayment issues. Most Singaporeans already own their homes—80% live in HDBs—making this price leap a potential asset.

The Retirement Safety Net

Rising property values can also be a cornerstone of retirement planning. As living costs rise, stagnant property prices could leave retirees scrambling financially. Downsizing from a larger home to a smaller one can yield significant profit for pension supplements, ensuring a more comfortable retirement.

Finding the Ideal Balance

Interestingly, it’s crucial to strike a balance in the housing market—prices shouldn't drop excessively nor inflate too wildly. Ideally, housing costs should mirror household incomes, with modest growth beyond consumer price inflation to maintain purchasing power.

The key takeaway? It's not about whether an HDB flat becomes S$1 million or S$2 million—what matters is how these prices evolve relative to incomes over time. A stable relationship between housing prices and income is vital for both current homeowners and future generations.