Million-dollar HDB resale transactions have become one of the most closely watched segments of Singapore’s housing market. These sales frequently attract attention because they challenge the long-standing perception that public housing should remain far below private property prices.
However, a recent PropNex survey reported by The Business Times provides an important clarification. In 2025, most buyers of million-dollar HDB resale flats did not pay any Cash Over Valuation, or COV.
According to the survey, 69.1% of buyers purchased their flats without paying above the official valuation. This suggests that million-dollar HDB prices are increasingly being supported by prevailing market valuations, rather than being driven mainly by excessive cash premiums or emotional bidding.
What Cash Over Valuation Means
Cash Over Valuation arises when the agreed purchase price of a resale HDB flat exceeds its official valuation.
For example, if a flat is valued at $1.05 million but the buyer agrees to purchase it for $1.10 million, the $50,000 difference becomes COV. This amount must be paid entirely in cash because housing loans and CPF usage are based on the lower of the purchase price or valuation.
COV therefore represents the portion of the purchase price that cannot be fully financed through a housing loan or CPF savings.
A high COV requirement increases the buyer’s upfront cash burden. It can also indicate that buyers are bidding beyond the value supported by recent comparable transactions.
Most Million-Dollar HDB Buyers Paid No COV
The PropNex survey covered 110 million-dollar HDB resale transactions completed in 2025.
| COV Paid | Percentage |
|---|---|
| No COV | 69.1% |
| Below $40,000 | 11.8% |
| $40,000–$79,999 | 6.4% |
| $80,000–$100,000 | 3.6% |
| Above $100,000 | 5.5% |
| Unknown | 3.6% |
The findings show that nearly seven in ten million-dollar HDB transactions were completed at or close to the official valuation.
This is significant because million-dollar flats are often portrayed as properties that require buyers to pay large cash premiums. The survey indicates that this assumption is not representative of most transactions.
Million-Dollar Prices Are Increasingly Supported by Valuations
When a buyer pays no COV, it means the agreed sale price is broadly aligned with the official valuation.
This does not necessarily mean the flat is inexpensive. It means the valuation has already accounted for the property’s location, floor level, age, size, condition, and recent comparable transactions.
As more flats in a particular project or neighbourhood transact above $1 million, these sales gradually become part of the pool of comparable market evidence used for future valuations.
A price that once appeared exceptional can eventually be supported by valuation if enough similar transactions occur. This explains why million-dollar HDB sales can continue rising even while the proportion of buyers paying COV remains relatively low.
The Difference Between High Prices and High COV
It is important to distinguish between a high transaction price and a high COV.
A flat can sell for $1.2 million without any COV if its official valuation is also $1.2 million. Conversely, a flat purchased for $900,000 may involve a substantial COV if the valuation is only $820,000.
The presence of COV, therefore, does not depend solely on the absolute purchase price. It depends on the gap between the negotiated price and the valuation.
This distinction is particularly important when analysing premium HDB flats. A million-dollar price does not automatically mean the buyer is overpaying relative to prevailing market evidence.
Can the 2025 Figures Be Compared With 2024?
A precise year-on-year comparison is difficult because there does not appear to be a publicly available survey with an equivalent sample size and methodology for million-dollar HDB transactions in 2024.
Without directly comparable data, it would be misleading to state conclusively that COV rose or fell by a specific percentage between 2024 and 2025. However, the broader market context suggests that valuations have been gradually adjusting to sustained resale price growth.
Million-dollar HDB transactions became increasingly common in 2024, particularly in mature and centrally located estates. As more transactions crossed the million-dollar threshold, these sales would have provided additional comparable evidence for subsequent valuations.
The 2025 finding that 69.1% of buyers paid no COV may therefore reflect a market in which valuations have caught up with transaction prices. Rather than buyers continuing to bid increasingly large amounts above valuation, the valuation benchmark itself may have moved higher.
What May Have Happened to COV Between 2024 and 2025
In a rapidly rising market, transaction prices can move faster than valuations. During such periods, buyers may need to pay more COV because recent comparable sales have not yet fully reflected current demand.
Over time, as more transactions are completed at higher prices, valuations adjust. This can cause COV to narrow even when transaction prices remain elevated.
Therefore, a lower incidence of COV does not necessarily mean the resale market has become cheaper. It may instead mean that higher prices have become more established and are now supported by comparable transactions.
This is an important distinction for buyers. Lower COV improves financing flexibility, but it does not reduce the overall purchase price or long-term financial commitment.
Who Is Buying Million-Dollar HDB Flats?
The buyer profile identified in the survey provides useful insight into why demand for such flats remains resilient. Buyers aged between 30 and 49 accounted for approximately 71% of the transactions surveyed. Buyers aged 60 and above represented around 12.7% of sales.
This indicates that the million-dollar HDB demand is not concentrated within a single demographic. It includes first-time buyers, mid-career upgraders and older households right-sizing from private property.
Each group has different housing needs and funding sources.
Buyers Aged 30 to 39
Among buyers aged 30 to 39, approximately 40.5% reported purchasing a million-dollar HDB flat as their first home. These buyers may include dual-income professional households who have accumulated strong CPF savings and cash reserves before entering the property market.
They may choose a premium resale flat instead of waiting for a Build-To-Order flat because they require immediate occupation or prefer a specific mature estate. Their purchase decision may also be influenced by proximity to parents, workplaces, MRT stations, established schools and lifestyle amenities.
For some of these households, a million-dollar HDB is not viewed merely as a starter home. It may be intended as a long-term family residence.
Buyers Aged 40 to 49
The 40-to-49 age group appears to include a substantial proportion of HDB upgraders. Around 46% of buyers in this age group reportedly purchased a million-dollar flat after moving from a smaller HDB home.
These households may have owned their previous flat for many years and benefited from capital appreciation, mortgage repayment and CPF accumulation. They are also likely to be in their peak income-earning years, with stronger borrowing capacity than younger buyers.
For this segment, the purchase is often funded through a combination of sale proceeds from an existing flat, CPF savings, cash and a new housing loan.
Their decision to remain in the HDB market may reflect a preference for larger space, more mature locations, or greater financial prudence than upgrading to private property.
Buyers Aged 60 and Above
One of the most notable findings concerns buyers aged 60 and above.
Around 71% of buyers in this age group were reported to have purchased a million-dollar HDB flat after downsizing from a private residential property. These buyers may have sold a condominium, apartment or landed home and moved into a centrally located or spacious HDB flat.
Their objective may not be to minimise the purchase price. Instead, they may be seeking a more manageable home while retaining access to familiar neighbourhoods, transport connections and amenities.
By purchasing an HDB flat after selling private property, these households may also release a substantial amount of equity for retirement, healthcare, investment or estate planning.
Where the Buyers’ Funds May Be Coming From
The purchase of a million-dollar HDB flat is rarely funded by a single source. In many cases, the buyer’s financial capacity comes from a combination of accumulated housing equity, CPF savings, household income, cash reserves and housing loans.
The relative importance of each source depends heavily on the buyer’s age and previous property ownership.
Sale Proceeds From an Existing HDB Flat
For mid-career upgraders, the sale of an existing HDB flat may provide the largest portion of the purchase funds.
A household that sells its existing flat for $850,000 and has an outstanding loan of $180,000 may have significant net proceeds available after accounting for CPF refunds and transaction expenses.
These proceeds can be used to reduce the loan required for the next purchase. This makes a million-dollar replacement flat more affordable than the headline price may suggest.
The buyer may not need to borrow the full purchase price because a large portion of it is funded with equity from the previous home.
CPF Ordinary Account Savings
CPF savings are another major funding source, especially for buyers in their 30s and 40s.
Dual-income households may have accumulated CPF balances over many years of employment. These funds can be used for the down payment, monthly mortgage instalments and other eligible housing expenses.
The buyer must still consider CPF accrued interest and retirement adequacy. However, CPF can significantly reduce the amount of cash required at completion. Where no COV is payable, a greater proportion of the purchase can potentially be funded through CPF and the housing loan.
Household Income and Borrowing Capacity
The survey indicated that a substantial proportion of buyers had monthly household incomes above $10,000. Approximately 35.5% reportedly earned between $10,001 and $16,000 per month. Around 20% earned between $16,001 and $20,000, while other buyers earned above that range.
These income levels provide stronger mortgage servicing capacity, particularly for households with limited existing debt.
However, income alone may not explain the purchase. A buyer earning $15,000 per month will still require substantial CPF savings or sale proceeds to prudently manage the down payment and monthly instalments.
The strongest buyers are therefore likely to be households combining good income with accumulated assets.
Proceeds From Private Property
For older buyers, proceeds from the sale of private property may be the most important source of funds. A household selling a condominium for $2.5 million may be able to purchase a $1.2 million HDB flat with limited or no borrowing, depending on its outstanding mortgage and CPF obligations.
The remaining proceeds can be retained as cash, reinvested or used to support retirement.
This helps explain why some retirees are willing and able to purchase expensive HDB flats. They may be downsizing in property type while still choosing a premium location or larger layout.
Cash Savings and Family Wealth
Some buyers may also use personal cash savings, investment proceeds, bonuses or financial support from family members. This may be more relevant for first-time buyers who do not have an existing property to sell.
However, the available data does not provide a detailed breakdown of how much funding came from savings, inheritance, family support or investments. Any conclusion about these sources should therefore be treated as an inference rather than a confirmed finding.
Why Mature Estates Dominate Million-Dollar Transactions
Million-dollar HDB transactions are concentrated in towns such as Bukit Merah, Queenstown, Toa Payoh, Kallang-Whampoa and Clementi. These areas tend to offer a combination of centrality, MRT access, established amenities, larger flat types and limited new supply.
Some units may also have premium attributes such as high floors, panoramic views, rare layouts or proximity to the city centre. Buyers are therefore not paying solely for the physical flat. They are paying for the complete location-and-lifestyle package.
For households that value accessibility and established neighbourhoods, a premium HDB flat may still be more affordable than a comparable private condominium in the same area.
Why Buyers May Prefer a Million-Dollar HDB Over a Condominium
A million-dollar HDB may provide more internal space than a similarly priced private property. In central or mature locations, a private condominium at the same price may be significantly smaller, older or farther from an MRT station.
Some buyers may therefore prefer to allocate their budget towards a large resale HDB flat rather than pay for private facilities, security and common areas that they may not use extensively.
For mid-career families, this can represent a practical trade-off between location, space and tenure. The decision may be lifestyle-driven rather than status-driven.
Is the Low COV Rate Good for Buyers?
A low COV rate is generally beneficial because it reduces the amount of cash required upfront. When the purchase price is fully supported by valuation, the buyer has greater flexibility to use CPF and housing finance, subject to eligibility and loan limits.
However, buyers should not interpret zero COV as proof that a property is automatically affordable or undervalued. The total purchase price may still be high. Buyers must assess monthly instalments, the remaining lease term, renovation costs, future resale demand, and retirement implications.
Zero COV improves financing efficiency, but it does not eliminate financial risk.
What the Survey Reveals About the Market
The survey suggests that million-dollar HDB flats are becoming an established segment of Singapore’s resale housing market. These transactions are increasingly supported by valuations rather than widespread cash premiums. This implies that premium resale prices are being reinforced by evidence from actual transactions.
The buyer base is also more diverse than commonly assumed. Younger households are buying premium flats as first homes, mid-career families are upgrading using accumulated equity, and retirees are right-sizing from private property. Demand is therefore being driven by different life stages rather than by a single group of speculative buyers.
The Broader Implications for Singapore’s Housing Market
The rise of million-dollar HDB transactions reflects both housing demand and long-term household wealth accumulation. Many buyers are not entering the market with salary income alone. They are using equity built up through earlier home ownership, CPF savings and proceeds from private property.
This creates a market where established homeowners may have considerably more purchasing power than first-time buyers without property equity.
It also highlights the growing price difference between ordinary resale flats and premium units in highly sought-after locations. As more transactions occur at elevated prices, future valuations may continue to recognise those levels, reducing COV even when headline prices remain high.
Prices of Million-Dollar HDBs are Supported By Fundamentals
The most important finding from the PropNex survey is not simply that million-dollar HDB transactions are increasing. Most of these purchases were completed without COV.
This indicates that premium HDB prices are increasingly being supported by official valuations and comparable transactions.
The buyer profile further shows that demand comes from financially established households at different stages of life. First-time buyers may rely on high incomes and CPF savings, mid-career upgraders may use proceeds from their existing HDB flats, and retirees may fund purchases through the sale of private property.
A direct comparison with 2024 remains difficult without equivalent survey data. Nevertheless, the 2025 findings suggest that valuations have increasingly caught up with higher resale prices.
Million-dollar HDB flats should therefore not be analysed solely through the headline price. Buyers and market observers must also consider the valuation, COV, remaining lease term, location, buyer profile, and source of funds for each transaction.
Disclaimer:Â This article is provided for general informational and educational purposes only and should not be regarded as financial, investment, legal or property advice. While reasonable care has been taken to ensure the accuracy of the information at the time of writing, market conditions, government policies, HDB regulations, financing rules and property values may change without notice.
The analysis is based on publicly available information, including the PropNex survey, The Business Times report, and the author’s own interpretation of the available data. Comparisons with 2024 are based on publicly available market observations and should not be interpreted as definitive statistical comparisons, as an equivalent survey using the same methodology was not publicly available.
Any discussion of buyer profiles, funding sources, or purchasing behaviour constitutes general market analysis and should not be taken as reflecting the circumstances of every buyer or transaction. Individual financial positions, CPF balances, loan eligibility and housing objectives vary significantly.
Readers should conduct their own due diligence and seek advice from qualified property professionals, financial advisers, mortgage specialists or legal advisers before making any property purchase, sale or investment decision. The author and publisher accept no responsibility for any loss or damages arising from the use of the information contained in this article.
Article contributed by Jerry Wong.
Jerry Wong is a realtor at Propnex Realty, bringing a rich background in interior and lighting design to his work. He loves exploring diverse spaces and observing the transformative power of real estate. Beyond his professional role, Jerry finds his greatest fulfillment in connecting people with the right properties, gaining immense satisfaction from helping clients achieve their dreams.
