Most buyers of $1M resale HDB flats paid no cash over valuation

SINGAPORE: About seven in 10 buyers who purchased million-dollar Housing and Development Board (HDB) resale flats last year did not have to pay any cash over valuation (COV), according to a PropNex survey examining 110 resale transactions completed in 2025.

From the beginning of 2026 to July 16, 1,002 HDB resale flats changed hands for at least $1 million. This compares with the all-time high of 1,593 such transactions recorded throughout 2025.

The survey found that 69.1% of buyers paid no COV when purchasing resale flats priced at $1 million or more. A further 11.8% paid less than $40,000 in COV, whilst 6.4% paid between $40,000 and under $80,000.

Meanwhile, 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 known for 3.6% of the transactions surveyed.

The resale flats covered in the survey were sold for prices ranging from $1 million to $1.659 million.

Four-room flats made 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, whilst jumbo flats represented the remaining 1.8%.

The findings also showed that buyers aged between 30 and 49 formed the largest group of purchasers, accounting for about 71% of all surveyed transactions.

Among buyers aged 30 to 39, around four in 10 bought the million-dollar flat as their first home. In the 40 to 49 age group, 46.3% were upgrading from smaller HDB flats.

Older buyers tended to have different housing needs. Among purchasers aged 60 and above, 71.4% had moved from private residential properties after downsizing. For those aged between 50 and 59, 30.8% had also downsized from private homes.

The survey further indicated that more than 70% of buyers were employed in professional, managerial, executive or technical occupations.

In terms of household earnings, the largest income group comprised buyers with a monthly household income of between $10,001 and $16,000, representing 35.5% of respondents. However, income information was unavailable or not disclosed for 25.5% of the cases.

Location remained a key consideration for buyers. The most commonly cited reasons for choosing a property were the town or neighbourhood, proximity to an MRT station and the availability of a high-floor unit.

PropNex also noted that the pace of million-dollar HDB resale transactions has slowed this year compared with the record-breaking performance in 2025.