The year 2025 has redefined benchmarks for public housing in Singapore, officially recording over 1,500 HDB resale flats that crossed the psychological S$1 million threshold. This impressive historic surge reached a fever pitch in the third quarter, which saw a staggering 480 million-dollar transactions.
September stood out as a particularly buoyant month, witnessing a record-breaking 172 units change hands, representing nearly 7.9% of all transactions during that period. Although volume moderated considerably in the final quarter to 248 deals due to seasonal cooling and cautious sentiment, prices remained surprisingly stubborn.
The median transaction price actually climbed from S$1.10 million in the third quarter to S$1.12 million by year’s end, proving that enthusiastic buyers were still willing to pay a heavy premium for the right home.
Location played a massive role in these valuations, with mature estates frequently stealing the spotlight like celebrities on a red carpet. Toa Payoh led the pack in September with 37 high-value sales, while Bukit Merah and Queenstown remained perennial favorites. This consistent demand was evident earlier in the year when Toa Payoh recorded 27 million-dollar flats sold in April alone.
The crown jewel of the year, however, emerged in the fourth quarter within Bishan. A five-room DBSS flat at Block 275A, situated on a dizzying high floor, commanded an eye-watering S$1.63 million.
This specific transaction, boasting a lease dating back to 2011, shattered previous ceilings by exceeding S$1,200 per square foot, making earlier peaks, like April’s S$1.49 million Toa Payoh sale, look almost modest.
It seems everyone wants a view from the top, regardless of the price tag attached.
Several factors fueled this intense market appetite. Anticipation surrounding the General Election 2025 and tariff discussions likely prodded buyers into action, creating urgency. The increase of LBC rates for non-landed residential properties by an average of 0.7% also prompted buyers to finalize purchases before potential cost increases.
Additionally, high prices for new private launches pushed many to seek larger resale flats adjacent to the city, valuing space over private status.
By September, over 30.2% of sales fell into the S$900,000 to S$1 million range, signaling that the supply of affordable housing below S$500,000 is shrinking.
With year-on-year resale prices up 9.3%, the demand for choice units seems unstoppable, redefining what public housing really costs for the average Singaporean. To address this sustained demand, the government land sales pipeline is expected to yield 9,185 new units in the first half of 2026.
