Will $900,000 deals for three-room HDB flats remain the exception?

SINGAPORE - In the first 11 months of 2025, at least four three-room Housing Board flats, excluding terraced flats, resold at prices of at least $900,000. This was up from the first and only such sale in 2024, igniting talk of windfall profits for their sellers.

But those hoping to hit the jackpot should temper their expectations, given that the majority of three-room resale flats transacted for an average of about $470,000 in the first 11 months of 2025.

Three-room flats that command high prices tend to have significantly longer leases and be on higher floors, as well as being centrally located near MRT stations, schools and amenities, analysts say.

One case in point: A 66 sq m premium apartment in SkyParc@Dawson, which had at least 95 years left on its lease, recorded the highest resale price for such units to date, at $935,000.

PropNex, which represented the buyers, said the Singaporean couple in their 50s sought to be nearer their workplace. They were prepared to pay over $900,000 for the Dawson Road unit because similar-sized new private homes nearby would have easily cost double that sum.

In the first 10 months of 2025, such new private homes in Queenstown sold for an average of $1.93 million. Resale condo units of a similar size sold for $1.55 million.

Another pull factor for the buyers of the Dawson Road unit was the view, as the flat is located between the 34th and 36th storeys.

Those willing to pay top dollar for newer, well-sited three-room flats tend to be couples or singles who “prioritise convenience and prefer a smaller, low-maintenance home in a central location”, said ERA Singapore’s key executive officer, Mr Eugene Lim.

High-priced transactions still a rarity

To put things in perspective, 5,604 three-room flats – excluding terraced flats – were resold in the first 11 months of 2025.

Three-room flats that transacted for at least $800,000 accounted for just 1.8 per cent of overall resales for this flat type, reflecting that such deals remain a rarity.

Apart from the Dawson Road unit, only three other units in Bidadari’s Alkaff Lakeview and Bidadari Park Drive sold for over $900,000 in 2025.

The two Alkaff Lakeview units had at least 94 years left on their leases. The 71 sq m flats were located between the 16th and 18th storeys, and between the 13th and 15th storeys, and resold at $930,000 in October and $920,000 in July, respectively.

Another 68 sq m unit located between the 10th and 12th storeys in Bidadari Park Drive, also with at least 94 years left on its lease, transacted at $900,000 in November.

The first three-room resale flat to change hands for $900,000 was located in Alkaff Lakeview. The sale, which took place in December 2024, was the only such sale for the whole of that year.

The number of three-room flats resold for between $800,000 and $900,000 has also more than doubled from 41 in 2024 to 95 so far in 2025.

Analysts said this trend could gain traction in the future.

Ms Christine Sun, chief researcher and strategist at OrangeTee – Realion Group, said Queenstown, Toa Payoh and Kallang/Whampoa are likely to see more three-room flats command higher prices, as more flats in these towns have reached the minimum occupation period in 2024 and 2025.

ERA’s Mr Lim believes that projects such as Forfar Heights in Queenstown and Bendemeer Light in Kallang/Whampoa may also see three-room flats cross the $900,000 mark.

This is because one such flat at Forfar Heights resold for $880,888 in September, while another at Bendemeer Light transacted at $870,000 in August, he noted.

However, the prospect of three-room flats crossing the $1 million mark remains slim in the near term, Mr Lim said.

“Such transactions would likely require a higher cash-over-valuation, and a larger cash outlay that may not be feasible for most buyers,” he said.

Looking at the near term, analysts noted that the overall HDB resale market is moderating.

According to the HDB resale price index, price growth decelerated from 2.6 per cent in the fourth quarter of 2024 to 1.6 per cent in the following quarter, then most recently to 0.4 per cent in the third quarter of 2025.

Ms Sun cited cooling demand for resale flats as more buyers opted for new flats. In 2025, more than 30,000 new units were offered for sale over three sales exercises, which diverted demand from the resale market.

But she also pointed out that with more three-room flats selling for $800,000 and above, it is possible for more four-room and five-room flats in the same area to be sold for at least $1 million, even as such sales remain a fraction of overall HDB resale volumes.

October saw 87 million-dollar flat transactions, a 49 per cent drop from 172 units in September, according to the latest SRX and 99.co report.

But the tally of million-dollar flats reached 1,243 units for the third quarter. According to PropNex, this figure is projected to reach 1,500 units for the full year, surpassing the 1,035 units posted for the whole of 2024.

With resale HDB prices growing at their slowest pace in five years in the third quarter of 2025, as new public housing supply diverted demand and amid ongoing economic uncertainty, it remains to be seen if such outlier deals in the three-room resale flat market can continue to gain traction in 2026.