Analyst predicts over 500 flats will be resold for more than S$1M in 2024

SINGAPORE: As prices in the resale property market continue to climb, one real estate analyst has predicted that over 500 Housing and Development Board (HDB) flats will fetch prices exceeding a million dollars in 2024.

This prediction follows the recent sale of a 5-room Design, Build and Sell Scheme (DBSS) flat in Toa Payoh, marking a new record for the “most expensive HDB flat” ever sold. Situated across levels 40 to 42 at 139A Lor 1 Toa Payoh, the premium public housing unit commanded an impressive sum, selling for over S$1.568 million.

As of Jan 26, 56 HDB flats have already crossed the million-dollar threshold.

Huttons Asia’s Senior Director of Data Analytics, Lee Sze Teck, told Singapore Business Review that this figure could surge nearly tenfold by the year’s end, indicating a growing trend of million-dollar flats in Singapore.

Mr Lee attributed this surge to rising owner expectations, fueled by witnessing neighbours achieving lucrative sales.

He also pointed to a policy change in flat classification from October 2024, allowing owners to hold firm on asking prices as their flats will no longer carry resale restrictions.

The anticipated increase in million-dollar HDB flat sales raises questions about affordability and market dynamics.

As Singaporeans adjust to this evolving real estate landscape, industry players and policymakers may face new challenges in maintaining a balanced and accessible housing market.