The Significance of the $1.5 Million Benchmark

As the resale market heats up, the $1.5 million price tag has taken on a new psychological significance. With average resale private condos priced around $1,680 per square foot, a typical 900 square-foot, three-bedroom unit costs approximately $1.51 million. This new standard brings resale flats perilously close to new launch Executive Condominiums (ECs), effectively closing the gap between public and private housing options.

The small number of flats hitting this benchmark may spark concerns and discussions about future policy changes surrounding housing. Interestingly, just over ten years since the first million-dollar flat was sold, we are already witnessing the first $1.5 million transactions, predicting a potential spike in this trend ahead.

Where are These Resale Flats Located?

So, where can you find these high-priced gems? As it stands, resale flats valued at $1.5 million are predominantly located in specific areas of Singapore, particularly:

- Central Area (Cantonment Road) - Bukit Merah - Bishan - Toa Payoh

These neighborhoods have historically been hotspots for premium flats. Most notably, the record for the most expensive HDB flat currently stands at a staggering **$1.73 million** for a unit at SkyOasis @ Dawson, leaving other projects, even the famed Pinnacle @ Duxton, in the dust.

The Characteristics of $1.5 Million Flats

1. **Larger Units Dominate the Market:** Not surprisingly, larger units command higher prices; most of these expensive flats are executive or five-room apartments. A notable mention is a so-called “3-room flat,” which is actually a landed terrace house. The trend of buyers seeking larger homes, even when unnecessary, is perpetuating demand and driving prices up.

2. **Presence of Non-Standard Units:** Many of the flats priced at over $1.5 million include Design, Build, and Sell Scheme (DBSS) properties, despite previous complaints about their quality. Interestingly, location may trump design flaws for some buyers who appreciate features like additional bathrooms and high ceilings.

3. **Newer Properties at Premium Prices:** Among the high price tags, many of these units are relatively new, boasting 85-90 years of remaining lease. This aspect, combined with strategic locations, significantly boosts their market value. In contrast, older flats might be cheap but carry the burden of lease decay and limited resale options.

4. **Higher Floors, Higher Values:** Notably, these expensive flats are seldom found on lower floors, with most being situated on higher floors—highlighting a preference for views and privacy among buyers. This ethos is evident in the record-breaking SkyOasis @ Dawson unit mentioned above.

Looking Ahead: Trends and Predictions

As we step into 2025 and beyond, all eyes will be on the resale flat prices in response to the mass production of new HDB units since the COVID-19 pandemic. The introduction of new housing models like Plus and Prime may dramatically alter the landscape, impacting desirability and price in premium HDB neighborhoods.

The question remains: How long can this trend sustain? As the market fabric changes, potential homebuyers will undoubtedly keep a watchful eye on this evolving narrative. With a rapidly shifting landscape and ever-increasing prices, it's an exciting time to explore Singapore's housing market!