Transactions of million dollar or more HDB resale flats brings many positives
[SINGAPORE] Looking for a five-room Housing & Development Board (HDB) resale flat on a high floor that is under ten years old in the Queenstown area? You may need to budget about S$1.5 million.
A search on HDB's data showed a premium loft unit on the 22nd to 24th story of Block 92 Dawson Road, with remaining land lease of over 89 years and size of 122 square metres (sq m), was transacted in June at about S$1.66 million.
Meanwhile, several five-room flats along Dawson Road, with remaining land lease of over 94 years and size of 107 sq m, were transacted at S$1.4 million or more each this year. One unit on the 28th to 30th story of Block 79 Dawson Road fetched around S$1.47 million.
In perspective, paying S$1.5 million for a home works out to around 6.3 times the annualised average monthly household income including employer CPF contributions of the eighth decile of resident employed households of S$19,948 in 2024.
Certainly, very few HDB resale flats fetch close to S$1.5 million each. And one may need to budget S$1.5 million for a resale condo unit of around 70 sq m near Dawson Road.
Still, HDB resale flats have generally gotten far pricier these days. The HDB Resale Price Index – which tracks the overall price movement of resale flats – rose by 52.9 per cent from 131.5 in Q4 2019, pre Covid-pandemic, to 201 in Q1 2025. And the proportion of resale flats transacting at over S$1 million dollars each is generally rising, with some analysts expecting up to 1,500 such deals this year.
A NEWSLETTER FOR YOU
Tuesday, 12 pm Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Sign Up
Sign Up
Is a strong HDB resale market, with more transactions of at least a million dollars, a cause for consternation or celebration? I see various positives to having a buoyant HDB resale market.
Wealth effect
One, many Singaporeans are HDB homeowners who intend to live in their homes for years with no intention to sell, even if they are constantly pestered to do so by overzealous property agents.
An owner occupier of an HDB flat, which appreciates in value, will enjoy a positive wealth effect and be able to consume with greater confidence. In turn, private consumption is a key driver of the economy.
Think of the many food and beverage sector jobs, for example, that are supported by local residents dining out. Or how the spending of local residents on everything from home improvement and wellness to enrichment classes supports jobs.
Also, robust HDB resale flat prices help provide a strong base for the housing pyramid here. Ultimately, having firm housing prices in general helps ensure a healthy financial system as home loans are a vital part of the loan books of major lenders here.
Importantly, Singapore is a global city that attracts numerous wealthy people from Asia and elsewhere, many of whom go on to become its permanent residents (PRs) and citizens.
Letting many Singaporeans enjoy asset appreciation from their HDB homes can help locals deal with possible issues of envy and resentment that may arise from living in a city where some experiences are well beyond the financial reach of the general public.
Condo upgrading
Two, a strong HDB resale flat market supports many locals in pursuing their condo ownership dreams.
That many young locals aspire to own condos is positive. After all, economic growth is driven by people working hard to chase material aspirations instead of lying flat and being content.
Many Singaporeans use gains from selling an HDB Build-To-Order (BTO) home after the minimum occupation period to help buy condo homes. Indeed, for some young locals, recycling gains from selling a BTO home to buy a condo home can help them catch up with peers who received parental help to get into condo ownership.
Moreover, the economy gains when there is healthy demand for new condos as this supports the livelihoods of developers, contractors and property agents, among many others. The state, too, benefits from selling land for building private homes, with proceeds from state land sales accruing to past reserves.
Funding for retirement
Three, the owned-HDB flat is the single most important financial asset for many Singaporean households.
The fact that HDB flats rise in value and have a ready market of buyers gives owners financial options. For example, a flat can be sold to raise funds to deal with a family emergency, fund a business venture or finance a child's higher education overseas.
Crucially, with rising life expectancy, seniors can raise funds by selling their HDB home to better ensure financial adequacy in their retirement years. For one, an elderly person will likely raise a substantial amount of cash by selling a four- or five-room HDB home and buying a short-lease two-room flexi flat or community care apartment from HDB.
Meanwhile, elderly HDB flat owners who aim to leave a financial legacy to their family members, can draw much satisfaction from knowing that they are gifting a valuable flat upon their demise.
Doubtless, rules governing the eligibility of buyers of HDB resale flats can be tightened if the goal is to bring down HDB resale flat prices and improve their affordability.
Should PR households be restricted from buying HDB resale homes? What about imposing an income cap on buyers of all HDB resale flats? Or instead of possibly relaxing the wait-out period, applying a much longer wait-out period before former private homeowners can buy an HDB resale home?
Nonetheless, while many people may hope for cheaper HDB resale flats, I think having a strong HDB resale flat market offers various positives and is well worth cherishing.
May the HDB continue to provide many locals a good start in their homeownership journeys with affordably priced BTO homes in a wide range of locations including centrally located ones. Concurrently, may HDB flat owners enjoy the wealth effect and the greater financial options afforded that come with owning a home which rises in value despite its remaining land lease gradually running down.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Singapore Law Watch
10 hours ago
- Singapore Law Watch
When a dual-income, no-kids couple fight over $2.3m cash
When a dual-income, no-kids couple fight over $2.3m cash Source: Straits Times Article Date: 22 Jun 2025 Author: Tan Ooi Boon Man tries but fails to deny ex-wife share of commission earned for brokering a company takeover. There's usually plenty of money to fight over when Dinks – dual income, no kids – couples split up, but a Singapore pair took that to a new level when they fought over even the $15,000 spent on their pampered dogs. The dog fight was just a sideshow; the real battle was over savings in excess of $2 million. The conflict – sadly all too common among divorcing spouses, no matter what money is at stake – became a sort of legal benchmark here because it is rare for the High Court to hear cases involving such couples, especially when large sums of cash are involved. Their occupations were not disclosed in the court ruling but all attention was on the $2.8 million in sales commission the husband earned for brokering the takeover of a company. That sum alone, which attracted income tax of over $500,000, dwarfed all other assets they owned during their relatively short union of about eight years. The couple, who lived with the husband's parents, had other combined assets of about $900,000, which included a $132,000 net gain from the sale of their HDB flat. They had married in 2011 but barely a year after that, there were signs that not all was well, with allegations of infidelity and a general drifting apart. In 2020, the wife moved out and, in 2022, they filed for divorce. During the hearing for the division of assets, the Family Justice Court looked only at the couple's financial contributions, as they did not have any children. The husband had close to $3 million in his name while his ex-wife's assets amounted to $213,000, so the division ratio was about 93 to 7 in the husband's favour. When the case came before High Court Judge Mohamed Faizal, he saw no reason to adjust this ruling. But he noted that even in the case of a childless marriage, a spouse's indirect contribution must still be considered, otherwise the efforts in caring for each other would be rendered 'worthless'. 'Even in the context of a childless marriage, the parties would have ordinarily invested deeply in each other's personal and professional growth,' he said, adding that the law would 'honour the shared journey and investment made as a partnership'. In the end, the division ratio for the couple was adjusted to 85 to 15, which doubled the wife's initial share. Here are three points relating to matrimonial assets that all couples should know. Proof of income and expenses With a windfall as high as $2.8 million, it was only human that the husband would claim the money was not entirely his in order to prevent his ex-wife from having a share. He said the commission was earned by 'a group of people' who brokered the deal. To prove his point, he retained only $50,000 and transferred the rest of it to a friend. If this was true, it would not make sense to declare the bulk of the commission to the taxman as his own income, which attracted a levy of over $500,000. If the sum was earned by a group of people, they would collectively pay a lot less tax if they each declared their share of the commission to the taxman. Not surprisingly, Judge Faizal did not believe the husband's story, especially when the documents he submitted to support his claim were seen 'as poor, at best'. 'He was only able to produce an undated letter entitled 'Invoice', where he stated that all the commission was to be paid to him, without reference to anyone else.' As a result, about $2.3 million of the commission was added to the pool for sharing, after paying tax. The wife could also not prove her claim that $15,000 was paid to a pet clinic to treat their dogs. She had withdrawn about $42,000 from their joint bank account after the sale of their HDB flat and claimed that part was spent on the dogs. As she could not produce receipts, it was presumed she spent the whole amount on herself. Living in parents' home When a couple live in a home owned entirely by one of them, both are likely to have shares in the property, which will be viewed as their matrimonial home. But living in a residence belonging to a set of parents will not transform this property into a couple's matrimonial home as the assets are not theirs in the first place. Even if they have contributed to renovating their bedroom, for example, it is still hard for an ex-spouse to make a claim on the in-laws' property. At most, the sum spent would be considered in the matrimonial division. In this case, the wife had no claim on her former in-laws' property as she was living there as a tenant who was also served by their domestic helpers. But she could stake a claim to a private apartment that her ex-husband bought as an investment because this was done during their marriage. Contributions in childless marriages As the law views a marriage as a partnership, the successes and achievements attained in a Dinks marriage should not be seen as the result of one spouse's hard work and effort, but a collective effort of both parties. As Judge Faizal put it: 'This can manifest in a multitude of ways, from one partner taking on more domestic responsibilities to allow the other to excel in their career, to providing important emotional support to each other when facing the many hurdles of life.' So in this instance, he found that a 50-50 ratio for indirect contributions would be appropriate, as both sides also did their part before the marriage broke down. That said, such contributions would not be viewed as having the same weightage as financial contributions, especially for short marriages. Judge Faizal cited two previous cases and noted that the court gave a 50 per cent weightage for a childless marriage that lasted over 11 years, and a 25 per cent weightage for one of five years with one child. As the couple were effectively together for about eight years, he said a 20 per cent weightage for indirect contributions would not be at odds with the precedents and was also appropriate on the facts. So after considering the overall contributions, he adjusted the wife's earlier share of about 7 per cent to 15 cent. Since the total value of the matrimonial assets, which included the sales commission, was about $3.2 million, the wife would be entitled to about $480,000 and the husband $2.72 million. While a divorce may be a painful experience for estranged spouses, the law strives to be fair to all parties by compensating the efforts that both sides have invested in their marriage. Tan Ooi Boon is the Invest Editor of The Straits Times Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Business Times
12 hours ago
- Business Times
Transactions of million dollar or more HDB resale flats brings many positives
[SINGAPORE] Looking for a five-room Housing & Development Board (HDB) resale flat on a high floor that is under ten years old in the Queenstown area? You may need to budget about S$1.5 million. A search on HDB's data showed a premium loft unit on the 22nd to 24th story of Block 92 Dawson Road, with remaining land lease of over 89 years and size of 122 square metres (sq m), was transacted in June at about S$1.66 million. Meanwhile, several five-room flats along Dawson Road, with remaining land lease of over 94 years and size of 107 sq m, were transacted at S$1.4 million or more each this year. One unit on the 28th to 30th story of Block 79 Dawson Road fetched around S$1.47 million. In perspective, paying S$1.5 million for a home works out to around 6.3 times the annualised average monthly household income including employer CPF contributions of the eighth decile of resident employed households of S$19,948 in 2024. Certainly, very few HDB resale flats fetch close to S$1.5 million each. And one may need to budget S$1.5 million for a resale condo unit of around 70 sq m near Dawson Road. Still, HDB resale flats have generally gotten far pricier these days. The HDB Resale Price Index – which tracks the overall price movement of resale flats – rose by 52.9 per cent from 131.5 in Q4 2019, pre Covid-pandemic, to 201 in Q1 2025. And the proportion of resale flats transacting at over S$1 million dollars each is generally rising, with some analysts expecting up to 1,500 such deals this year. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Is a strong HDB resale market, with more transactions of at least a million dollars, a cause for consternation or celebration? I see various positives to having a buoyant HDB resale market. Wealth effect One, many Singaporeans are HDB homeowners who intend to live in their homes for years with no intention to sell, even if they are constantly pestered to do so by overzealous property agents. An owner occupier of an HDB flat, which appreciates in value, will enjoy a positive wealth effect and be able to consume with greater confidence. In turn, private consumption is a key driver of the economy. Think of the many food and beverage sector jobs, for example, that are supported by local residents dining out. Or how the spending of local residents on everything from home improvement and wellness to enrichment classes supports jobs. Also, robust HDB resale flat prices help provide a strong base for the housing pyramid here. Ultimately, having firm housing prices in general helps ensure a healthy financial system as home loans are a vital part of the loan books of major lenders here. Importantly, Singapore is a global city that attracts numerous wealthy people from Asia and elsewhere, many of whom go on to become its permanent residents (PRs) and citizens. Letting many Singaporeans enjoy asset appreciation from their HDB homes can help locals deal with possible issues of envy and resentment that may arise from living in a city where some experiences are well beyond the financial reach of the general public. Condo upgrading Two, a strong HDB resale flat market supports many locals in pursuing their condo ownership dreams. That many young locals aspire to own condos is positive. After all, economic growth is driven by people working hard to chase material aspirations instead of lying flat and being content. Many Singaporeans use gains from selling an HDB Build-To-Order (BTO) home after the minimum occupation period to help buy condo homes. Indeed, for some young locals, recycling gains from selling a BTO home to buy a condo home can help them catch up with peers who received parental help to get into condo ownership. Moreover, the economy gains when there is healthy demand for new condos as this supports the livelihoods of developers, contractors and property agents, among many others. The state, too, benefits from selling land for building private homes, with proceeds from state land sales accruing to past reserves. Funding for retirement Three, the owned-HDB flat is the single most important financial asset for many Singaporean households. The fact that HDB flats rise in value and have a ready market of buyers gives owners financial options. For example, a flat can be sold to raise funds to deal with a family emergency, fund a business venture or finance a child's higher education overseas. Crucially, with rising life expectancy, seniors can raise funds by selling their HDB home to better ensure financial adequacy in their retirement years. For one, an elderly person will likely raise a substantial amount of cash by selling a four- or five-room HDB home and buying a short-lease two-room flexi flat or community care apartment from HDB. Meanwhile, elderly HDB flat owners who aim to leave a financial legacy to their family members, can draw much satisfaction from knowing that they are gifting a valuable flat upon their demise. Doubtless, rules governing the eligibility of buyers of HDB resale flats can be tightened if the goal is to bring down HDB resale flat prices and improve their affordability. Should PR households be restricted from buying HDB resale homes? What about imposing an income cap on buyers of all HDB resale flats? Or instead of possibly relaxing the wait-out period, applying a much longer wait-out period before former private homeowners can buy an HDB resale home? Nonetheless, while many people may hope for cheaper HDB resale flats, I think having a strong HDB resale flat market offers various positives and is well worth cherishing. May the HDB continue to provide many locals a good start in their homeownership journeys with affordably priced BTO homes in a wide range of locations including centrally located ones. Concurrently, may HDB flat owners enjoy the wealth effect and the greater financial options afforded that come with owning a home which rises in value despite its remaining land lease gradually running down.
AsiaOne
a day ago
- AsiaOne
Lawrence Wong heads to China for first official visit as PM, Singapore News
BEIJING — Prime Minister Lawrence Wong will make a five-day official visit from June 22 to China, where he will seek to chart the strategic direction of bilateral ties with Chinese leaders. This will be his first trip to China since taking office in May 2024. In Beijing, he is scheduled to meet the country's top three leaders — President Xi Jinping, Premier Li Qiang and National People's Congress chairman Zhao Leji. The trip will allow both sides to reaffirm their commitment to strengthening ties and is 'an opportunity for leaders to discuss bilateral issues as well as regional and global developments', the Prime Minister's Office said on June 22. The visit comes as Singapore and China mark the 35th anniversary of diplomatic relations. In 2023, they upgraded ties to an 'All Round High Quality Future Oriented Partnership'. PM Wong will also travel to Tianjin – a port city about 1.5 hours south-east of Beijing by car — to attend an event commonly known as Summer Davos. He will take part in a dialogue with World Economic Forum (WEF) president Borge Brende. The official name for Summer Davos is the WEF Annual Meeting of the New Champions. Although this is PM Wong's introductory visit to China in his new capacity as head of Singapore's fourth-generation leadership, he is returning to familiar ground. Since entering politics in 2011, he has visited China almost every year except during the Covid-19 pandemic. His previous China-related roles included co-chairing the Singapore-Sichuan Trade and Investment Committee and overseeing the Tianjin Eco-City when he was Minister for National Development. He last visited China in December 2023, when as Deputy Prime Minister he co-chaired the Joint Council for Bilateral Cooperation with Vice-Premier Ding Xuexiang. Following his appointment as Prime Minister in 2024, DPM Gan Kim Yong took over that role. Singapore has prioritised keeping ties with China warm through regular high-level engagements. Senior Minister Lee Hsien Loong visited China in November 2024 and met President Xi. Economic links between the two countries remain strong and mutually beneficial. China has been Singapore's largest goods trading partner for over a decade, accounting for about 13 per cent of the Republic's global goods trade in 2024. Singapore is China's largest foreign investor. For this trip to China, PM Wong will be joined by a new member of his Cabinet — Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow — who entered politics in the May 2025 General Election. Another new face is Dr Syed Harun Alhabsyi, a former Nominated Member of Parliament who contested the 2025 GE as a People's Action Party candidate. He was appointed in May as Senior Parliamentary Secretary in the Ministry of Education and the Ministry of National Development, and will be sworn in later in 2025. Other members of PM Wong's delegation include Minister for Foreign Affairs Dr Vivian Balakrishnan, Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu, and Senior Minister of State for Foreign Affairs and Home Affairs Sim Ann. After the official visit, PM Wong will be on leave on June 27, his office said. While he is away, DPM Gan, who is also Minister for Trade and Industry, will serve as Acting Prime Minister from June 22 to 25. Coordinating Minister for National Security and Minister for Home Affairs K. Shanmugam will take over from June 26 to 27. ALSO READ: French President Macron and PM Wong sample local fare at Lau Pa Sat; sign deals on defence, AI at summit This article was first published in The Straits Times . Permission required for reproduction.
