In the rapidly evolving landscape of Singapore's real estate market, a recent surge in million-dollar Housing Development Board (HDB) flat transactions has caught the attention of many. However, Minister for National Development Desmond Lee recently stated that the government is prepared to implement measures to rein in demand if necessary.

Despite what may seem like an increase in high-value flat transactions, statistics reveal that flats sold for over a million dollars comprised only 3.6 percent of resale transactions in 2024. Speaking on a podcast, Lee emphasized that eight out of ten homebuyers who received their keys in the same year were able to manage their monthly mortgage payments solely with their Central Provident Fund (CPF) savings, resulting in little to no cash outlay. This indicates that many Singaporeans are finding suitable options among both Build-To-Order (BTO) and resale flats, reinforcing a sense of affordability in the housing market.

However, Lee acknowledged the public fascination with million-dollar flats, hinting at the government's readiness to intervene if the market trends escalate beyond sustainable levels. "If implementing cooling measures is necessary, we will not hesitate to act," he remarked. These cooling measures could include tightening valuations and reducing loan amounts, actions that would recalibrate the market by curbing demand.

Lee's comments point to the delicate balance the government must maintain to ensure housing prices align with economic fundamentals. He noted the importance of monitoring parameters such as GDP and income growth to prevent the housing market from outpacing the economy.

Further strengthening the affordability narrative, Lee disclosed new strategies the government is pursuing. These include increasing grants aimed at helping first-time home buyers and significantly boosting the supply of flats. In a noteworthy update, all 92 BTO projects delayed due to the COVID-19 pandemic have been successfully completed as of January 2025, allowing these flats to enter the resale market and help alleviate affordability concerns.

Looking ahead, Lee projected a growing number of flats eligible for resale. By 2028, the number of flats reaching their minimum occupation period (MOP) is expected to rise dramatically from 8,000 in 2025 to 19,500. Additionally, more than 50,000 new housing units are set to be launched from 2025 to 2027.

As Singapore navigates the complexities of its housing market, Minister Lee's proactive measures signal a commitment to maintaining housing as an accessible and attainable asset for its citizens. With the government's watchful eye on the market dynamics, buyers can expect continued efforts to ensure housing prices remain within reach amid evolving economic conditions.