85 million-dollar HDB flats listed following new HDB resale portal launch

Singapore’s Housing and Development Board (HDB) officially launched its new resale flat listing service on Thursday (30 May) which has already seen a surge in listings, including 85 units priced over a million dollars.

The platform was soft-launched earlier on 13 May, facilitating the listing and direct management of transactions between sellers and property agents.

As of Friday evening, the platform boasts 738 listings, with prices ranging from S$283,000 to a staggering S$1.65 million.

To further break down the listed properties: 48 flats are priced between S$200,000 and S$400,000. Additionally, there are 168 flats in the S$400,000 to S$600,000 range. The majority of the flats, totalling 303, are listed between S$600,000 and S$800,000. Furthermore, 187 flats are available in the higher price bracket of S$800,000 to S$1,000,000

Notably, most of the 85 units priced over a million dollars are located in the central area, with a significant concentration on Cantonment Road. This area had seen a record transaction last November when a five-room flat fetched S$1.42 million.

The record for the priciest resale flat in Singapore is held by a five-room flat in Tiong Bahru View, which sold for a record S$1.588 million.

HDB’s new portal is designed to offer a more transparent and secure marketplace. It allows sellers to list their flats for free and includes a feature where sellers are automatically prompted if their listing price is “at least 10 per cent more than the highest transacted price for nearby units of the same flat type sold in the past six months.”

This is intended to help sellers make more informed decisions about their resale price, thus creating “a more sustainable property market in the long run,” according to HDB.

Discussing the implications of the new service, Ku Swee Yong, CEO of International Property Advisor, commented, “With the HDB Resale Portal, only qualified sellers are allowed to list. The level of trust in the quality and transparency of the information listed is high. Therefore, high priced listings at up to 10% above recent transactions will embolden and nudge the next seller to list his flat for sale at around the maximum price they are able to list at.”

He elaborated on the mindset of sellers, stating, “Every house-proud owner will find reasons to justify why they deserve to sell at a higher price: better renovations, great views, quiet corner, high floors, etc.”

The portal also requires sellers to have a valid Intent to Sell and restricts them to one listing per flat to avoid duplicates. It ensures that all users authenticate access via Singpass, fostering a more secure and conducive environment for transactions.

While the platform offers many advantages, HDB also cautions prospective buyers about financial prudence. “Prospective buyers are advised to plan their budget carefully, considering their income, renovation needs and mortgage financing ability, and exercise financial prudence in their flat purchase to avoid overstretching themselves,” HDB stated.

As the portal continues to evolve, the debate over the sustainability of rising HDB flat prices persists. Ku suggests that “Unless there is a way for Buyers to provide feedback and somehow bid down prices, we are likely to see prices continue to trend upwards unless the resale supply outstrips the number of buyers.”

HDB, for its part, has reiterated that it “reserves the right to remove listings which have unrealistic pricing or contain misleading information,” ensuring the integrity of the marketplace.

Ku, however, expressed concerns that if the new resale portal continuously encourages sellers to aim for higher prices, public housing could become increasingly unaffordable for many middle and lower-middle-income families.

He cautioned that this sustained trend towards escalating prices might push public housing beyond the financial reach of these groups, potentially undermining the core purpose of HDB flats as affordable housing options.