Singapore's HDB resale market is showing a growing divide: overall transaction volumes have slowed, yet the number of million-dollar resale flats has risen sharply. In recent months, the total number of resale transactions dipped, partly due to cooling measures such as tighter loan-to-value limits and increased Additional Buyer's Stamp Duty. But demand for premium units—typically larger flats in prime locations like mature estates or near MRT stations—has remained strong, pushing more deals past the S$1 million mark.
This trend has widened the gap between typical HDB resale flats and top-tier units. Analysts say the slowdown in the broader market reflects cautious buying by first-time homeowners and upgraders facing stricter financing conditions. Meanwhile, wealthier buyers, often upgrading from condos or selling private property, are less affected by loan curbs and are willing to pay a premium for size and location.
The divergence creates a two-tier market: price growth in mass-market flats has moderated, while million-dollar transactions set new records. For example, a five-room flat in Tiong Bahru recently sold for S$1.18 million, a sign of sustained interest in centrally located flats. In contrast, less central estates are seeing longer selling times and softer prices.
First-time buyers may find it harder to enter the market at affordable prices, as the supply of lower-cost resale flats dwindles. Upgraders who own older flats in sought-after areas, however, can benefit from higher selling prices. The government has said it will monitor the situation and may introduce more targeted measures if needed.
Looking ahead, analysts expect the gap to persist as long as interest rates remain low and demand for large flats continues. Policy adjustments, such as increasing the supply of Build-To-Order flats in prime areas or tweaking the resale levy, could alter the dynamics. For now, the HDB resale market is sending mixed signals: a broad slowdown coexists with a premium segment that is defying the trend.