Majority of $1M Resale HDB Flat Buyers in Singapore Paid No Cash Over Valuation

Singapore, Singapore Jul 22, 2026 ALN: A recent survey conducted by PropNex has revealed that approximately seven in ten buyers who purchased million-dollar Housing and Development Board (HDB) resale flats last year did not have to pay any cash over valuation (COV). This finding is significant as it indicates a shift in the dynamics of the HDB resale market, particularly in the context of rising property prices and changing buyer demographics.

The survey examined 110 resale transactions completed in 2025, providing a snapshot of the market during a period of heightened activity in the HDB sector. From the beginning of 2026 to July 16, a total of 1,002 HDB resale flats changed hands for at least $1 million. This figure, while substantial, represents a decrease compared to the all-time high of 1,593 transactions recorded throughout 2025. The decline in transactions suggests a cooling off in the market after a period of rapid price increases and heightened demand.

According to the survey, 69.1% of buyers paid no COV when purchasing resale flats priced at $1 million or more. This statistic is particularly noteworthy as it reflects a trend where buyers are increasingly able to secure properties at or below market valuation, despite the overall high price point of these transactions. Additionally, 11.8% of buyers paid less than $40,000 in COV, while 6.4% paid between $40,000 and under $80,000. In contrast, 9.1% of buyers paid at least $80,000 above valuation, including 5.5% who forked out more than $100,000 in COV. The COV amount was not disclosed for 3.6% of the transactions surveyed, indicating some variability in the market.

The resale flats included in the PropNex survey were sold for prices ranging from $1 million to $1.659 million, highlighting the high-end segment of the HDB market. The types of flats sold varied, with four-room flats making up the largest share of transactions at 42.7%, followed by five-room units at 35.5%. Executive flats accounted for 20% of the surveyed sales, while jumbo flats represented the remaining 1.8%. This distribution of flat types indicates a preference among buyers for more spacious living arrangements, which may be influenced by the increasing number of families seeking larger homes.

Demographically, the survey found that buyers aged between 30 and 49 formed the largest group of purchasers, accounting for about 71% of all surveyed transactions. This trend reflects a broader demographic shift in Singapore's housing market, where younger buyers are increasingly entering the market, often seeking to establish their first homes. Among buyers aged 30 to 39, approximately four in ten purchased the million-dollar flat as their first home, suggesting that this segment of the population is willing to invest significantly in their housing choices. In the 40 to 49 age group, 46.3% were upgrading from smaller HDB flats, indicating a tendency for families to seek larger accommodations as their needs evolve.

Older buyers exhibited different housing needs, with those aged 60 and above showing a significant trend towards downsizing. Among this group, 71.4% had moved from private residential properties after downsizing, while 30.8% of those aged between 50 and 59 also downsized from private homes. This trend may be influenced by various factors, including changing family structures, the desire for lower maintenance living, or the need for more manageable living spaces as individuals age.

In terms of employment, the survey indicated that more than 70% of buyers were employed in professional, managerial, executive, or technical occupations. This high percentage suggests that the demographic of million-dollar HDB flat buyers is likely to be financially stable, with the ability to afford such significant investments. Furthermore, the survey highlighted that the largest income group comprised buyers with a monthly household income of between $10,001 and $16,000, representing 35.5% of respondents. However, it is important to note that income information was unavailable or not disclosed for 25.5% of the cases, which may indicate a need for further transparency in the market.

Location remains a critical consideration for buyers in Singapore's housing market. The most commonly cited reasons for choosing a property included the town or neighbourhood, proximity to an MRT station, and the availability of a high-floor unit. These factors reflect a desire for convenience and accessibility, as well as a preference for living in areas with good transport links and amenities. As urbanization continues to shape Singapore's landscape, the importance of location is likely to remain a key driver of buyer decisions.

PropNex also noted that the pace of million-dollar HDB resale transactions has slowed this year compared with the record-breaking performance in 2025. This slowdown could be attributed to a variety of factors, including economic uncertainties, changes in buyer sentiment, and potential regulatory adjustments in the housing market. As the government continues to monitor the property market and implement measures to ensure affordability and sustainability, the dynamics of the HDB resale market may continue to evolve.

The implications of these trends extend beyond mere statistics and transaction volumes. They raise important questions about the sustainability of the current housing market in Singapore, especially as the government seeks to balance the needs of various demographic groups. Policymakers may need to consider how to support first-time buyers, particularly younger individuals and families who are entering the market at higher price points. The ability of these buyers to purchase homes without paying COV may indicate a more stable market, but it also highlights the challenges that exist for those who may not have the financial means to compete in a high-priced environment.

Moreover, the trend of downsizing among older buyers speaks to a larger societal shift. As the population ages, there may be increased demand for smaller, more manageable living spaces that cater to the needs of retirees and older adults. This shift could influence future housing policies and the types of developments that are prioritized in urban planning efforts. Understanding these demographic changes will be crucial for ensuring that the housing market remains responsive to the evolving needs of Singapore's population.

In conclusion, the findings from the PropNex survey provide valuable insights into the current state of the HDB resale market in Singapore. With a significant portion of buyers paying no COV and a notable demographic shift towards younger buyers and downsizers, the market is undergoing changes that reflect broader societal trends. As Singapore continues to grapple with housing affordability and availability, understanding these trends will be crucial for policymakers, industry stakeholders, and potential buyers alike. The ongoing evolution of the HDB resale market will require careful monitoring and responsive measures to ensure that it remains accessible and sustainable for all segments of the population.