For the right size, location and type, you could very well be living in a $1 million Housing Development Board (HDB) flat.
71 HDB flats sold for $1 million or more last year
Those familiar with the property market will know that location, size and type of property often dictate how much it can sell for. The same goes for HDB flats in the resale market despite it being public housing.
In 2018 alone, 71 resale HDB flats were sold for $1 million or more, a record-breaking number till date.
It was also the first time normal 4-bedroom flats sold for such high prices. Though last year’s figures were already high and unusual, analysts are expecting the number to grow this year.
What buyers are willing to pay $1 million for
Most of the 71 units sold last year were in fairly central locations or at least near an MRT station. 18 units were in the Central Area, 12 units in Queenstown, and 12 units in Bishan. There were however a few in the suburbs such as a 5-room unit in Clementi and an executive maisonette in Hougang.
Analysts attribute part of the fervent sales last year to the number of HDB flats in matter estates which have reached the end of the minimum occupation period (MOP).
Out of the 71 units which sold for $1 million or more last year, 87% or 62 units were 5-room flats or larger. 4 units in the same cluster in Tiong Bahru made news however for being some of the first 4-room flats to go for more $1 million each.
Executive maisonettes or DBSS (Design, build and sell scheme) units often have generous floor areas, especially compared to private properties of around the same price range. Thus it is perhaps not surprising that some buyers may prefer to pay for the size and location of a public housing unit instead.
Rare central location HDB units such as those in the iconic Pinnalce@Duxton or terrace units in Mei Ling Street, for example, may also garner offers of $1 million. Some of these units sold also come with great views, for example, those in the Tiong Bahru cluster.
While million-dollar HDB flats are not the norm, the numbers look set to grow, especially as even more units in mature estates such as Ang Mo Kio and Bukit Merah reach their MOP this year.