In the ever-evolving landscape of Singapore’s housing market, the rise of over $1.5 million resale HDB flats has redefined perceptions of value and luxury. Once, a million-dollar HDB flat was considered astonishing, but now, that figure seems almost commonplace. The focus has shifted; we are now in an era where $1.5 million signifies the new benchmark for opulent living. Here’s a closer look at the stunning properties that are reeling in buyers at these eye-popping prices!

Why is $1.5 Million Such a Significant Milestone?

The threshold of $1.5 million has emerged as a critical psychological marker in the housing sector. Presently, resale private condos have an average price of around $1,680 per square foot (psf), which equates to about $1.51 million for a typical 900 sq. ft. three-bedroom unit. This alignment with new Executive Condominiums (ECs) has effectively blurred the lines between public and private housing markets.

While the allure of million-dollar flats has captivated many, the emergence of properties crossing the $1.5 million threshold raises eyebrows, inviting speculation about potential policy shifts to address this surge.

Noteworthy Resale Flats Crossing the $1.5 Million Barrier

Currently, the record for the most expensive resale flat is an astonishing $1.73 million—located at the renowned SkyOasis @ Dawson. To date, this remains unrivaled, underscoring the unique position these high-value properties hold in Singapore’s housing portfolio.

Location, Location, Location!

If we explore the geography of these pricey flats, they reveal concentrated hotspots. Aside from the already well-known million-dollar flats scattered across various HDB towns, those exceeding $1.5 million are predominantly found in prime locales such as the Central Area (Cantonment Road), Bukit Merah, Bishan, and Toa Payoh. It’s unsurprising that these areas have consistently produced high-value flats over the years, showing their dominance within this market.

Anticipating the demand, future BTO (Built-To-Order) flats in these regions may soon resemble condo pricing structures, raising questions about the affordability landscape in neighborhoods like Bishan and Toa Payoh.

Size Matters

Most of the listed $1.5 million properties are sizeable—predominantly 5-room or executive flats. Interestingly, some listings include a 3-room landed terrace house, demonstrating the unusual and creative types of properties buyers are considering. The market is increasingly resonating with the preference for larger units; potential buyers often pursue bigger spaces than needed due to perceived market dynamics favoring larger flats for resale and investment potential.

The Rise of Unique Design and Build Schools

Among the featured properties, several belong to the Design, Build and Sell Scheme (DBSS), known for its controversial past related to quality concerns. Buyers may prioritize location over design, as many DBSS flats occupy coveted spaces. However, with the increasing prices, some buyers opt for quality EC units that elevate their lifestyle without costly embellishments.

Newer is Better

Interestingly, while many million-dollar listings comprise older properties, the recent $1.5 million category often consists of relatively new units, boasting around 85 to 90 years left on their leases. The combination of low lease decay and desirable locations likely contributes to the inflated price tags, offering buyers more extended living prospects and resale opportunities.

The Upper Echelons of Living

When it comes to floor selection, higher levels dominate the $1.5 million listings, highlighting a significant trend buyers are keen to secure units on higher floors for views, privacy, and luxury. The aforementioned record-setting SkyOasis unit's breathtaking vista undoubtedly bolstered its price.

What Lies Ahead for HDB Flat Prices?

As we approach the closing months of 2024 and anticipate the future, questions arise about sustaining momentum for these prices. With HDB ramping up production post-COVID-19, the introduction of new housing models could lead to market shifts that impact these high-demand areas. It remains to be seen whether the allure of $1.5 million flats will solidify or if economic turbulence will shake the foundations of this booming market.

Stay tuned as we continue to monitor these exciting developments in Singapore's housing sector!