How does a 50-year-old HDB flat, with decades of wear and a shrinking lease, fetch a staggering $1 million in today’s market? It’s a question that puzzles many, yet the answer lies in a mix of hard economics and heartfelt emotions.
In Q2 2025, median resale prices for 4-room flats in mature estates like Central Area, Toa Payoh, and Queenstown soared past the million-dollar mark, reflecting an 8.6% price rise in 2024 and a steady climb into the new year. Despite aging structures and shorter leases, these flats draw buyers willing to pay a premium, largely due to their irreplaceable locations and limited supply.
The appeal starts with location, pure and simple. These prime HDB estates offer unmatched access to MRT stations, malls, schools, and hawker centers, cutting down commute times and daily hassles. Areas like Queenstown and Toa Payoh aren’t just addresses; they’re well-connected hubs with decades of built-up infrastructure, unlike newer towns still finding their footing.
Add to that the scarcity of large, well-placed flats—especially since modern HDB designs rarely match the spacious layouts of older units—and it’s no wonder demand stays sky-high. In 2025, fewer flats hit the resale market after their Minimum Occupation Period, tightening supply further and pushing prices up, even for units showing their age. Additionally, with HDB planning to launch about 5,400 BTO flats in July 2025, the limited immediate supply in prime areas continues to drive resale demand for existing units. Moreover, the sustained demand is fueled by continuous quarterly growth in the resale price index, reflecting a resilient market despite economic challenges like elevated interest rates.
Beyond dollars and cents, there’s a deeper pull. Families, especially multi-generation households, crave these mature estates for their proximity to loved ones and lifelong social ties. The emotional value of staying near parents or childhood haunts often trumps practical concerns like lease decay.
There’s also a quiet prestige in owning a home in these iconic neighborhoods, a nod to heritage and nostalgia that newer flats can’t replicate. Who wouldn’t want to live where memories and community thrive?
Financially, it’s not a bad bet either. Million-dollar HDBs in central spots hold value thanks to perennial demand and historical price growth outpacing less mature areas. Despite the introduction of various cooling measures aimed at tempering the market, prime location units continue to command premium pricing. For many, the investment, paired with lifestyle perks, justifies the hefty tag.
