In recent years, Singapore’s property market has seen a growing trend of buyers choosing million-dollar HDB resale flats over private condos. This shift is particularly intriguing, given the significant sums involved and the range of choices available in the property landscape.
Pinnacle @ Duxton stands as a prime example of this trend. In May 2024, a 5-room flat there made headlines by selling for a record-breaking S$1.515 million, and just last week, another unit reached the same price.
This brings up a key question: with that kind of budget, why aren’t these buyers choosing private condos? What’s driving more people to spend millions on HDB flats instead?
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Million-dollar HDB flats continue to set records
The sale of million-dollar HDB flats is no longer a rare occurrence. In fact, the number of such flats has been growing steadily. In Q3 2024 alone, 331 HDB resale flats were sold for over a million dollars, setting a new quarterly record. By September 2024, a total of 750 million-dollar flats had been sold, surpassing the 469 units transacted in the entire year of 2023.
These million-dollar resale flats come in various types: from 4-room to executive flats. Kallang/Whampoa led the way with 55 transactions in Q3 2024, followed by Bukit Merah and Queenstown, with 45 and 37 transactions, respectively. The most expensive HDB resale flat currently on record is a 1,195 sqft 5-room unit at SkyOasis@Dawson, which sold for S$1.725 million.
But despite these rising prices, not everyone is deterred. Some buyers might even be unaffected by the recent cooling measures implemented by the government, such as the reduction of the Loan-to-Value (LTV) limit for HDB loans from 80% to 75%. High-income buyers or those with proceeds from selling private homes are still actively investing in the HDB resale market.
So, what’s keeping them away from the private property market?
Do you have a million-dollar HDB in your sights? Check your affordability instantly with 99.co’s affordability calculator!
Bigger sizes for lower prices
One of the main reasons buyers are drawn to HDB resale flats is the larger space at a lower cost. While paying over a million dollars for an HDB flat might seem steep, it’s important to remember that private condos often come with much smaller living areas at even higher prices.
Here’s a look at average condo prices in the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR) for the past six months:
| Bedroom type | Location | Median size | Average price | Average psf |
| 1 Bedroom | CCR | 581 sqft | S$1,294,990 | S$2,205 |
| RCR | 463 sqft | S$981,614 | S$1,733 | |
| OCR | 506 sqft | S$1,040,138 | S$1,996 | |
| 2 Bedroom | CCR | 958 sqft | S$2,178,013 | S$2,381 |
| RCR | 807 sqft | S$1,303,230 | S$1,657 | |
| OCR | 797 sqft | S$1,738,468 | S$2,208 |
As you can see, a 1-bedroom condo in the CCR costs around S$1.3 million for a much smaller space compared to larger HDB flats. In fact, a private condo of similar size and age to the 5-room flat sold in SkyOasis@Dawson would have cost about S$3 million. This price disparity is why many buyers opt for spacious resale HDB flats, which offer better value for money.
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High resale value
Originally introduced to help Singaporeans own their homes, the HDB market has since evolved into a profitable investment avenue. Many homeowners buy flats at a lower cost and sell them for a significant profit after fulfilling the Minimum Occupation Period (MOP) of five years.
The resale value of Pinnacle@Duxton units demonstrates just how lucrative HDB resale flats can be. A 5-room flat that initially sold for between S$345,100 and S$439,400 could now fetch around S$1.515 million, netting the first owner a profit of up to S$1.17 million – representing a capital gain of between 71% and 77%. And Pinnacle@Duxton is not the only ‘success’ story. Newly MOP-ed projects in mature estates like Kallang Trivista, Toa Payoh Crest, and Alkaff Vista in Bidadari have seen similar price jumps. Recent sales of 5-room flats in these developments have reached as high as S$1.33 million, providing capital gains of around S$600,000.
Is your home approaching its MOP, but you’re uncertain about your next property move? Book a FREE consultation with our 99 advisors today!
Even older flats, such as a 32-year-old executive flat in Toa Payoh, have sold for over S$1.2 million. While lower price per square foot and potential Selective En bloc Redevelopment Scheme (SERS) benefits may motivate some of these buyers, it’s crucial to remember that SERS is not guaranteed. Relying solely on SERS for investment returns can be risky.
Looking for more HDB flats that MOP-ed recently? Check out our article here: Full list of BTO projects hitting MOP in 2024/2025 & Our top picks near the MRT
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HDB towns offer convenience and amenities
Convenience is another key factor that draws buyers to HDB flats. Many HDB towns are well-planned with comprehensive amenities that cater to both young families and seniors. With easy access to MRT stations, hawker centres, malls, and grocery stores, living in an HDB flat can provide a level of convenience that some private condos might not match.
The Pinnacle@Duxton, for instance, boasts a high-end food court that offers quality dining options. This is a unique feature for an HDB project and something that isn’t commonly seen even in private condos. Amenities like these add to the appeal of HDB resale flats and contribute to their high price points.
Additionally, most million-dollar HDB flats are located in mature estates that have well-established infrastructure and transport links. These estates offer shorter commutes to the city centre and are often close to reputable schools and parks, making them highly desirable for families and working professionals alike.
Looking for a property close to an MRT station of your choice? Check out 99.co’s MRT map here.
Lower maintenance fees
One of the less obvious but significant reasons for choosing HDB flats over condos is the lower maintenance cost. While condo owners are required to pay monthly fees to their Management Corporation Strata Title (MCST) for amenities such as pools, gyms, and other shared facilities, HDB flat owners face much lower costs.
HDB homeowners are only responsible for Service and Conservancy Charges (S&CC), which are relatively affordable. Furthermore, they may qualify for rebates from the government, such as U-Save rebates to offset utility bills. Under the Assurance Package (AP) in 2024, households can receive up to S$950 in U-Save rebates. Even 5-room flat owners receive rebates, making HDB living much more cost-effective in the long run.
HDB maintenance fees: S&CC Rebates 2024 and 2025
| HDB flat type and disbursement month | 1-and 2-room | 3-room | 4-room | 5-room | Executive/ multi generation | |
| April 2024 | GSTV – U-Save | S$95 | S$85 | S$75 | S$65 | S$55 |
| B2024 COL U-Save | S$95 | S$85 | S$75 | S$65 | S$55 | |
| July 2024 | GSTV – U-Save | S$95 | S$85 | S$75 | S$65 | S$55 |
| AP – U-Save | S$95 | S$85 | S$75 | S$65 | S$55 | |
| B2024 COL U-Save | S$95 | S$85 | S$75 | S$65 | S$55 | |
| October 2024 | GSTV – U-Save | S$95 | S$85 | S$75 | S$65 | S$55 |
| B2024 COL U-Save | S$95 | S$85 | S$75 | S$65 | S$55 | |
| January 2025 | GSTV – U-Save | S$95 | S$85 | S$75 | S$65 | S$55 |
| AP – U-Save | S$95 | S$85 | S$75 | S$65 | S$55 | |
By comparison, condo owners must pay for the upkeep of private facilities that they may not use regularly, such as swimming pools or tennis courts, which can make the maintenance fees seem wasteful. The added costs of condo living can be a deterrent for some buyers, especially those who prefer to keep their living expenses manageable.
Discover the latest condo offerings and make an informed choice between a million-dollar HDB resale or a condo: Upcoming new launches: New Launch condos in H2 2024
Stability in loan interest rates
Finally, another point that sways buyers towards HDB flats is the stability of HDB loan interest rates. While private property buyers must rely on fluctuating bank loan rates, HDB loans have remained stable at 2.6% since July 1999. With rising bank loan interest rates, this stability offers peace of mind to buyers, especially those who prefer predictability in their finances.
HDB buyers are also eligible for subsidies like CPF housing grants, which can significantly lower the cost of purchasing a resale flat. Private property buyers, on the other hand, do not have access to these subsidies, making their purchases more expensive upfront. And while those buying million-dollar HDB flats may still need to cover Cash Over Valuation (COV), the stable interest rates of HDB loans can make financing their purchase much more manageable.
That said, would you rather buy a private condo or a million-dollar HDB flat? Share your thoughts in the comments section below or on our Facebook page.
About Sophiyanah David
Sophi, a seasoned copywriter specialising in Singaporean real estate and property, is one of the minds behind 99.co's informative articles. Like her colleagues at 99.co, Sophi is dedicated to keeping you informed about the ever-changing world of real estate so you can find your forever home. When off the clock, you can find her giggling and kicking her feet as she reads her romance novels, watching anime - if FMBA is not your fave, she might fight you (but you'll probably win) and looking up latest skincare trends.
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