A HDB DBSS Flat Just Sold For $1.6 Million: Why Is This Happening?

In July 2024, the record holder for the most expensive flat in Singapore was a $1.73 million Dawson unit. At the time, we thought it was an anomaly—something we wouldn’t see again for a long while. But here we are in January 2025, and already, a 13-year-old DBSS flat has nearly matched it, selling for $1.6 million. So, where are these prices headed, and what’s driving this surge?

A 13-year-old flat for $1.6 million

The flat in question is at The Peak @ Toa Payoh, a DBSS project. Located at Block 138A Lorong 1A, it’s a 1,259 sq.ft. unit situated on the 19th to 21st floor. At $1.6 million, that works out to about $1,270 psf.

We can already hear the obvious question: “What are nearby resale flat prices like?” Fair point—the area has seen several flats selling for $1.5 million or more, with some even making our list of the priciest resale flats of 2024.

But here’s a comparison to put things in perspective: Just 210 meters away from The Peak is Trevista, a leasehold private condo, with an average price of about $1,848 psf. In September 2024, a 1,012 sq. ft. unit there sold for $1.87 million.

Granted, the flat’s proximity to Toa Payoh Hub— a major retail and dining centre with an MRT station (NSL)—certainly justifies a higher price. But for an HDB project to be so close to private property prices is remarkable and underscores just how far prices have surged since the end of COVID.

Is it about DBSS being a cut above the rest?

Some news reports have cited industry experts claiming that DBSS flats are of superior quality. These flats were built by private developers, similar to Executive Condominiums (ECs), though they lack amenities like pools and gyms. However, it’s odd to hear such praise now, as many DBSS flats weren’t well-regarded for their quality when they were first launched.

That also goes for The Peak. Around 20 to 30 per cent of the initial buyers raised complaints about the flat’s quality. This suggests that the soaring prices today are likely more about the location than the actual quality/workmanship of the flats.

Some realtors have also suggested that it’s not so much quality, but the unique layouts that make DBSS flats appealing. Features like a third bathroom, double-volume ceilings, and floor-to-ceiling windows—elements not commonly found in HDB flats—set these units apart. While the quality of finishes may have left much to be desired at the time, these distinctive features retain their appeal. And many of the initial complaints, such as peeling laminates or cracked shower glass, could be addressed with the right contractor anyway.

We expected that demand for DBSS flats would continue, but prices have risen quicker than we imagined

A while ago, we asked when it is that we might see a $2 million flat. At the time as a fun piece, we “predicted” it would be around 2034 or 2035. But given that we’re already seeing prices above $1.5 million in 2024/25, we’ve clearly underestimated the rise in resale flat prices.

Also, we once pointed the finger at jumbo, maisonette, and other such special flats as the cause of million-dollar transactions. Now, it seems that DBSS flats are the most likely culprits to drive a price up to $2 million.

As far as optics go, these once-derided projects (see some old conversations) have the power to be a thorn in HDB’s side. The government did react quickly to the DBSS issue in the past: The scheme was suspended in 2011, when it became clear the pricing was out of control. Only 13 DBSS projects were ever completed, but the high initial and resale prices continue to create the impression of unaffordable housing; and we imagine it was one of the more regrettable decisions.

For more on the situation as it unfolds, follow us on Stacked. If you’d like to get in touch for a more in-depth consultation, you can do so here.