Around 6% of HDB resale flats crossed S$1 million in 2025, says Chee Hong Tat

About 6 per cent of HDB resale flats were transacted at above S$1 million in 2025, National Development Minister Chee Hong Tat told Parliament.

Chee was responding during the Parliamentary sitting on 7 April 2026 to a question filed by Workers’ Party MP Abdul Muhaimin Abdul Malik.

Abdul Muhaimin asked whether the Ministry is concerned that million-dollar resale flat transactions surged by 54.7% to 1,594 units in 2025, even as overall price growth moderated to 2.9%, and what measures the Government is considering to moderate such transactions and safeguard public confidence in public housing affordability.

Prices remain market-driven

Chee emphasised that resale flat prices are determined by market forces, based on agreements between buyers and sellers and influenced by location and flat attributes.

“Resale flat prices are set by the open market, at prices agreed between buyers and sellers depending on the flat’s location and attributes,” he said.

He added that despite the rise in million-dollar transactions, the resale market continues to offer a wide range of options catering to different budgets and needs.

In 2025, four-room resale flats with leases of 70 years or longer in Tampines and Punggol were priced between S$650,000 and S$700,000.

In Sembawang and Yishun, similar flats were available below S$600,000, while in Jurong West and Woodlands, options were priced below S$550,000.

Grants and supply to support affordability

Chee highlighted that eligible first-time buyers can receive housing grants of up to S$230,000, significantly reducing the financial burden of purchasing resale flats.

“HDB provides housing grants of up to S$230,000, further reducing the amounts that buyers need to pay,” he said.

He also pointed to early signs of moderation in the market. Based on flash estimates for the first quarter of 2026, resale prices declined slightly by 0.1%.

The Government expects this trend to continue, supported by a robust pipeline of new Build-To-Order (BTO) flats, including units with shorter waiting times.

Additionally, a growing number of flats completing their minimum occupation period (MOP) will enter the resale market from 2026 onwards, with further increases anticipated in 2027 and 2028.

Concerns over future price pressures

In supplementary questions, Abdul Muhaimin raised concerns that the influx of more than 13,500 flats reaching MOP in 2026—many located in mature estates—could paradoxically drive up the number of million-dollar transactions.

He asked whether newer flats in desirable locations might command higher prices, potentially counteracting efforts to moderate the market.

He also queried whether the income ceiling for BTO eligibility, which has remained at S$14,000 since 2019, is under review, and whether households exceeding this threshold are being pushed into the resale market, contributing to price pressures.

Government reviewing eligibility criteria

In response, Chee noted that flats entering the resale market are spread across various locations, not limited to mature estates.

“If we look at the resale flats that have reached MOP and are entering the market for this year and also 2027 and 2028, there is a spread,” he said.

“Some are in different parts of Singapore, some are nearer to MRT stations, some are a bit further away.”

He reiterated that this diversity ensures a range of options for buyers with different needs and budgets.

“We provide a range of options that cater to different groups of buyers,” he added.

On the question of income ceilings, Chee said the Government is currently reviewing eligibility criteria, not only for BTO flats but also for executive condominiums (ECs).

“We are reviewing the income eligibility criteria, not just for BTO flats but also for ECs,” he said, referring to earlier discussions during the Committee of Supply debates.

The review aims to assess whether existing thresholds remain appropriate amid evolving housing demand and market conditions.