Most buyers of million-dollar HDB flats paid no COV in 2025: PropNex
Survey finds that demand for such units was driven by 30 to 49-year-olds and retirees
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[SINGAPORE] A majority of buyers of million-dollar Housing & Development Board (HDB) resale flats did not pay any cash over valuation (COV) in 2025, said a PropNex report. It noted that this suggests prices in the segment are being supported by the market value of these units.
The survey, published on Friday (Jul 17), indicated that about 69.1 per cent of buyers did not pay COV for such flats.
Around 11.8 per cent of them paid COV of below S$40,000. About 6.4 per cent forked out between S$40,000 and less than S$80,000, while 3.6 per cent paid S$80,000 to S$100,000 as COV.
Some 5.5 per cent of buyers were said to have paid COV of above S$100,000. Respondents were unsure of the COV paid for 3.6 per cent of the deals.
COV comes into play when the price of a resale flat is above its actual HDB valuation. The difference can be paid for only in cash by the buyer.
If buyers and sellers have agreed on a resale price that is equal to the market valuation of the flat, buyers do not have to pay a COV.
The survey polled PropNex salespersons who collectively transacted 110 million-dollar HDB resale flats in 2025. The transactions were priced from S$1 million to about S$1.7 million, with most taking place in Toa Payoh, Bukit Merah, Kallang Whampoa, Queenstown and Clementi.
Different housing needs
The findings also revealed that, collectively, the 30 to 39 and 40 to 49 age groups made up some 71 per cent of the transactions tracked. Those aged 60 years and above represented 12.7 per cent of the sales. These figures translate to the different housing needs of these age groups.
About 71 per cent of the buyers aged 60 years and above – mostly retirees – were said to have purchased the million-dollar resale flat as their replacement home after downsizing from a private residential property.
“This suggests that million-dollar resale flats may be seen as a rightsizing destination for older, asset-rich Singaporeans who have sold their private home previously, freeing up equity for the resale flat purchase and retirement needs,” stated PropNex.
Some 46 per cent of buyers aged between 40 and 49 were reported to have purchased million-dollar resale flats as they upgraded from a smaller HDB flat.
Among buyers aged 30 to 39 years, about 40.5 per cent were said to have bought such flats as their first home.
“It is perhaps unsurprising that buyers in the 30 to 39 and 40 to 49 age groups formed a significant proportion of the million-dollar resale flat buyers, as these are life stages where buyers are in their prime income-growth years.”
They have greater accumulated savings and Central Provident Fund balances, and stronger purchasing power amid career progression into middle management or senior roles, noted the real estate company.
Among the buyers in these age groups, a larger proportion drew higher monthly household incomes, the survey results showed.
About 43 per cent of those aged 30 to 39 reportedly earned S$10,001 to S$16,000 per month, and nearly 19 per cent of them took home a monthly household income of S$16,001 to S$20,000.
In the 40 to 49 age group, 36.6 per cent had a monthly income of S$10,001 to S$16,000, while about 27 per cent of them drew an income of S$16,001 to S$20,000 each month.
Resilient demand
From the beginning of this year to Jul 16, there were 1,002 HDB flats resold for at least S$1 million. Sales were thus on track to meet or exceed the record of 1,593 of such flats resold in the whole of 2025, PropNex data showed.
Demand for such flats is underpinned by “a combination of factors, such as changing lifestyle preferences, stronger household affluence, and shifting housing priorities across different life stages”.
PropNex said: “While million-dollar resale flats are likely to remain a visible feature of the market, a key priority will continue to be maintaining a stable and well-supplied housing ecosystem across different price points and housing types.”
This is so that households with varying needs and financial means can continue to access suitable housing options at different stages of life, it added.
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