SINGAPORE: In a record-setting trend, the resale of Housing Development Board (HDB) flats priced at one million dollars hit a new peak in May.

Unofficial estimates from real estate market trading websites SRX and reveal that 74 HDB flats were sold for at least $1 million last month. This figure matches the all-time high previously recorded in January and represents an increase of 10 units from the previous month.

The breakdown of these transactions indicates a notable concentration in certain areas. Kallang-Whampoa led with 13 million-dollar sales, followed closely by Redhill with 12, and Toa Payoh with 8.

Other significant sales were noted in Queenstown, Geylang, Bishan, Bedok, Central, Hougang, Ang Mo Kio, Serangoon, Clementi, Pasir Ris, Tampines, Jurong West, Marine Parade, Bukit Timah, Bukit Batok, and Yishun.

Among these high-value transactions, a five-room flat on Cantonment Road commanded the highest price, selling for an impressive $1.515 million.

Market analysts suggest that the buyers of these million-dollar HDB flats are likely individuals transitioning from private property to HDB flats, attracted by the potential for better returns.

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Despite the surge in sales of million-dollar HDB flats, overall HDB resale prices saw a modest increase of only 0.3% in May. This marks the eighth consecutive month of rising HDB resale prices. By flat type, the prices of three-room, four-room, and five-room flats saw increases ranging from 0.1% to 1.6%, while prices for apartment flats experienced a decline of 1.1%.

Compared to the same period last year, HDB resale prices have risen by 6%. In terms of transaction volume, a total of 2,513 units were sold in May, reflecting a 5.3% increase from April and an 11.2% increase year-on-year.

As the market continues to evolve, the trend of million-dollar HDB flats appears set to persist, leaving concerns on whether public housing will continue to be affordable and accessible as wages stagnate.