Record-Setting Million-Dollar HDB Resale Transactions Amid Supply Constraints

Analysts predict that up to 1,500 million-dollar HDB resale transactions could occur this year, driven by a significant supply shortfall and consistent demand as units become eligible for the Minimum Occupation Period (MOP). The real estate market has seen a considerable increase in these high-value transactions, especially in the last two years, indicating a trend where properties priced at over S$1 million now make up a larger part of the sales.

Between January and Mid-June, properties selling for at least S$1 million comprised more than 10% of total transactions, reflecting ongoing demand. The limited supply of flats, particularly in areas like Bukit Timah, has contributed to rising prices, with many properties achieving record median prices. This trend suggests a shift in buyer behavior towards premium properties, even as the number of available units remains low.

With resale prices climbing, current data indicates that the median price of certain HDB flats in January 2025 reached S$625,000, emphasizing the market’s robust performance despite challenges. Real estate experts remain optimistic but also caution buyers about potential affordability issues as prices continue to escalate.