$1 Million HDB Flats: Here's What You Need To Know

Ever wondered what exactly goes behind the valuation and sales of million dollar flats?

What exactly makes them so pricey?

Is it location? Or model type? Or number of years left on the lease? or a combination of these factors amongst many others?

Click here for an overview on the type of resale flats available in the market!

TL;DR: An Overview of Million Dollar Flats

Let’s take a look at a historical overview of how these “exclusive” flats have changed over the past 7 years.

Overall, the quantity of million dollar flats increased drastically.

Looking at the numbers alone, they’ve increased by:

• 2014 to 2015 – 6 times. From 2 to 12 units.
• 2015 to 2016 – 1.67 times. From 12 to 20 units.
• 2016 to 2017 – 2.3 times. From 20 to 46 units.
• 2017 to 2018 – 1.54 times. From 46 to 71 units.

If we were to look further back, the total number of such units sold increased by an incredible 35.5 times, from 2 to 71 units, from 2012 to 2018.

For simplicity, here’s a breakdown of units sold in 2018.

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Bishan

In total, almost all of the million dollar flats sold within this area were either maisonettes or DBSS models.

Flat sizes averaged at 135 sqm while resale prices averaged at $1,042,599.

Most notably, the average remaining lease on these flats was 81.5 years!

Highest Resale Price

• Recorded at $1,180,000, February 2017
• Street 24, DBSS Model
• 5 Room, Level 40-42, 120 sqm
• 93 years left

Lowest Resale Price

• Recorded at $1,000,000, December 2014
• Street 13, Maisonette Model
• Executive, Level 19-21, 150 sqm
• 67 years left

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Central

In total, all of the million dollar flats sold within this area were either Type S1 or S2 models.

Flat sizes averaged at 105 sqm while resale prices averaged at $1,061,655.

Most notably, the average remaining lease on these flats was 92 years!

Highest Resale Price

• Recorded at $1,168,000, October 2018
• Cantonement Road, Type S2 Model
• 5 Room, Level 40-42, 106 sqm
• 91 years left

Lowest Resale Price

• Recorded at $1,000,000, February 2015
• Cantonement Road, Type S2 Model
• 5 Room, Level 22-24, 105 sqm
• 94 years left

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Queenstown

Overall, flats sold in this district were a mix of Apartment, Improved & Maisonettes.

Flat sizes averaged at 129 sqm while resale prices averaged at $1,053,288.

Most notably, the average remaining lease on these flats was 86 years!

Highest Resale Price

• Recorded at $1,160,000, July 2017
• Mei Ling Street, Apartment Model
• Executive, Level 19-21, 156 sqm
• 77 years left

Lowest Resale Price

• Recorded at $1,000,000, July 2012
• Mei Ling Street, Apartment Model
• Executive, Level 16-18, 150 sqm
• 75 years left

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Bukit Merah

Interestingly enough, the Bukit Merah district only recently saw sales of such flats.

Flats sold within this area were either Improved or Model A.

Flat sizes averaged at 101 sqm while resale prices averaged at $1,056,127.

Most notably, the average remaining lease on these flats was 96 years!

Highest Resale Price

• Recorded at $1,150,000, December 2018
• Boon Tiong Road, Improved Model
• 5 Room, Level 37-39, 112 sqm
• 96 years left

Lowest Resale Price

• Recorded at $1,000,000, December 2018
• Boon Tiong Road, Model A
• 4 Room, Level 34-36, 92 sqm
• 96 years left

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Toa Payoh

Overall, flats sold in this district were DBSS models.

Flat sizes averaged at 116 sqm while resale prices averaged at $1,053,513.

Most notably, the average remaining lease on these flats was 93 years!

Highest Resale Price

• Recorded at $1,160,888, August 2018
• Lorong 1A, DBSS
• 5 Room, Level 40-42, 117 sqm
• 92 years left

Lowest Resale Price

• Recorded at $1,000,000, December 2017
• Lorong 1A, DBSS
• 5 Room, Level 40-42, 114 sqm
• 93 years left

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Kallang/Whampoa

Overall, flats sold in this district were either terrace or DBSS models.

Flat sizes averaged at 153 sqm while resale prices averaged at $1,059,408.

Most notably, the average remaining lease on these flats was 82 years!

Highest Resale Price

• Recorded at $1,185,000, September 2018
• Jalan Bahagia, Terrace
• 3 Room, Level 1-3, 237 sqm
• 52 years left

Lowest Resale Price

• Recorded at $1,000,000, November 2016
• Boon Keng Road, DBSS
• 5 Room, Level 25-27, 117 sqm
• 93 years left

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Bukit Timah

Overall, flats sold in this district were all maisonettes.

Flat sizes averaged at 148 sqm while resale prices averaged at $1,018,555.

Most notably, the average remaining lease on these flats was 70 years!

Highest Resale Price

• Recorded at $1,058,000, August 2018
• Toh Yi Drive, Maisonette
• Executive, Level 4-6, 146 sqm
• 69 years left

Lowest Resale Price

• Recorded at $1,000,000, May 2013
• Toh Yi Drive, Maisonette
• Executive, Level 10-12, 146 sqm
• 68 years left

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Clementi

Overall, flats sold in this district were all improved models.

Flat sizes averaged at 118 sqm while resale prices averaged at $1,033,250.

Most notably, the average remaining lease on these flats was 94 years!

Highest Resale Price

• Recorded at $1,068,000, June 2018
• Avenue 3, Improved
• 5 Room, Level 31-33, 119 sqm
• 93 years left

Lowest Resale Price

• Recorded at $1,005,000, August 2016
• Avenue 3, Improved
• 5 Room, Level 16-18, 116 sqm
• 94 years left

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Hougang

Highest Resale Price

• Recorded at $1,000,000, January 2018
• Central, Maisonette
• Executive, Level 13-15, 177 sqm
• 78 years left

Serangoon

Highest Resale Price

• Recorded at $1,000,000, December 2017
• Avenue 2, Apartment
• Executive, Level 10-12, 165 sqm
• 66 years left

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Key Findings

Looking at the data, it is interesting to note that public housing experienced its 1st million dollar sales of ordinary 4 room flats in 2018. Most notably, these flats were primarily found in the Bukit Merah (Tiong Bahru) and Central (Cantonement Road) districts.

Moreover, most of these exclusive million dollar sales did not reference regular flats. Case in point, the Bishan or Bukit Timah maisonettes, which have not been constructed since 1995. It is crucial to note that these unique flat types average approximately 153 square meters – a huge difference compared to the average of 120 square meters for a 5 room DBSS flat.

In fact, some of these million dollar flats were not strictly speaking “public housing”. Case in point, the ultra rare terraces, where only 285 were originally built.

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 Valuation Metrics

It would be practically impossible to list down exactly which metrics constitutes towards a million dollar sale. That said, we’ll run through some of the more obvious ones that you, as a buyer or seller, should take note.

One-of-a-kind Architectural Features

Often times, developments that have been sold off at such record prices would undoubtedly have some sort of unique architectural feature.

For example, the units sold along Cantonement road, at Pinnacle@Duxton includes 2 of the longest sky gardens in the world.

Or maisonettes with 2 floors, which I must reemphasise, have not been built since 1995 and will unlikely be built anymore.

Locale

Location, location, location.

Arguably, one of, if not, the most important factor in a million dollar sale. Expectedly, most of these flats are located within mature estates where fewer flats are being constructed.

In turn, the data retrieved also points to 1 clear and irrefutable fact – Singaporeans are willing to pay a premium for homes located in central areas, close to amenities such as MRT stations, shopping centres or schools.

To put things into perspective, let’s compare 2 central districts – Bukit Timah & Queenstown.

Comparing both estates side by side, it is immediately clear that while Bukit Timah flats would initially be assumed as more expensive than Queenstown flats, the reverse is actually true in reality. How so then?

While both are considered mature estates, their proximity towards schools, neighbourhood shopping malls, hawker centres and arguably, most importantly, public transportation is a key differentiating factor.

Case in point, Queenstown flats are within proximity of several key MRT lines – Commonwealth, Queenstown and Buona Vista stations, which then go on to link towards other major lines. Comparatively, Toh Yi Drive flats are only within proximity of one MRT line – Beauty World station.

Not to mention the former’s proximity towards multiple neighbourhood primary and secondary schools.

Age

Unsurprisingly, age also plays a key role in determining a property’s final valuation. Let’s take a look at the some of the average values we’ve calculated above for a clearer perspective.

With an average remaining lease of 96 years (Bukit Merah) versus 70 years (Bukit Timah), the highest resale price was $92,000 more for Bukit Merah flats as compared to Bukit Timah ones.

Level

Frankly speaking, most buyers would preferably be looking at homes with an obstructed view. After all, which sane buyer would want a home with mundane views or worse case, overlooking another person’s home or construction site.

To that end, higher units with correspondingly better views tend to favour a higher resale price.

Purely looking at the numbers alone, a majority of these million dollar flats were situated above the 20th floor.

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Up & Coming Estates

So, this begs the most important question – what next? Which estates should you be looking out for the next $1 million flat buy/sell out.

Read more about upcoming record prices of Punggol’s HDB flats below!