Since 2020, there have been 136 million-dollar HDBs being transacted (up till Mar’21). Although this is still a relatively small portion (0.4%) of the entire market, the numbers have been increasing. In Q1’2021 alone, there were 53 million-dollar HDBs being transacted, compared to only 14 in Q1’2020 and 17 in Q1’2019.

The majority of these are located in the central districts, with Pinnacle @ Duxton in Tanjong Pagar contributing 36 units, to the million-dollar list in Q1’2021. The rest are transacted in 10 other towns, namely Queenstown (23), Bishan (21), Bukit Merah (16), Toa Payoh (15), Kallang/Whampoa (8), Clementi (7), Bukit Timah (6), Ang Mo Kio (2), followed by Serangoon and Geyland with one each.

Beyond the convenience of being centrally located, size is the other major contributing factor to the rise in these million-dollar HDBs. As the work-from-home phenomena is likely to continue for the foreseeable future, the demand for space to serve the hybrid function of working and living will skyrocket. HDBs are probably the least expensive asset class to serve this purpose. For example, a 5-room HDB in Tanjong Pagar costs $850 psf on average. A similar size condo at nearby Icon, a leasehold condo completed in 2002, will cost you an average of $1,650 psf, almost twice the price. The same scenario can be seen in other towns.

The delays in the completion of projects, public or private, due to the shortage of workers in the construction space, will also nudge property seekers to venture into the secondary markets and hunt for completed HDBs.

The combination of convenience, size, relative affordability and urgency are the key reasons behind the rise of million-dollar HDBs. And this trend will likely continue in the coming months. Besides, if you have a $1M budget today, needs at least 1,000 sqft of space to occupy soon in a somewhat central location, what other options are there?

By Ida West