Public housing has traditionally been represented by price quantum, whereas private homes are typically marketed according to price psf. For example, a three-room flat might be listed at $500,000, while a private property could be listed at $2,000 psf.
This trend is mainly due to varying pricing philosophies, target markets, and investment goals. For instance, public housing is intended for owner-occupiers, primarily focusing on first-time buyers and households with lower to middle incomes.
These flat buyers often operate within a fixed budget and require a straightforward understanding of the total lump-sum cost, after considering available subsidies or grants, to assess their affordability and determine the required loan amount. Moreover, HDB flats, especially older ones, are highly regulated with standardised designs. As a result, the price psf may not vary too significantly among different unit types within the same block.
Private properties, on the other hand, are aimed at investors and higher-income buyers. These properties often differ across developments, bedroom types, and locations. As a result, it could be easier for buyers to compare units or projects using a consistent metric, such as unit pricing or price psf, to determine if a unit is worth investing in, even if the overall price may seem reasonable.
More flats have been built over the years, entailing new designs, flat models, and layouts (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Resale flat market has evolved
As newer HDB flats become increasingly compact and more flats reach their minimum occupation period (MOP), prospective buyers may consider unit pricing as a measurement in conjunction with the overall price quantum to evaluate future flat purchases.
More flats have been built over the years, entailing new designs, flat models, and layouts. For instance, there are many variations of four-room flats, categorised as Model A, Model A2, Improved, Premium Apartment, Premium Apartment Loft, Simplified, Standard, and Type S1. Future flats may even include white plans that come with different customisable layouts within the same block.
Moreover, the sizes of flats have changed over the years. If we examine HDB resale transactions during the first four months of 2025, older four-room flats, which are at least 40 years old, had an average size of 1,015 sq ft. In contrast, transactions of newer four-room flats of less than a decade old had a smaller average size of 998 sq ft. Therefore, the same price quantum may translate to a different psf price for similar flat types.
Sources: Data.gov.sg, OrangeTee & Tie Research & Analytics
As a result, unit pricing may now be a useful metric to help buyers compare flat prices across sizes, models, and products, especially since many new flats will be built in the upcoming years. This methodology can help buyers make informed decisions and avoid overpaying for a property.
For example, a three-room resale flat on Boon Tiong Road was transacted for $850,000 in April this year. While this lump-sum pricing may seem reasonable for a city-fringe flat in Bukit Merah, it translates to $1,274 psf, which can be considered high for a small 667 sq ft unit for some buyers. It is especially true if we compare it with the island-wide median price of three-room flats at $594 psf in the first four months of 2025, which is less than half the cost on a psf basis.
On the other hand, some million-dollar flat transactions may not seem as extravagant when assessed on a psf basis. They could represent good value when evaluated against their spaciousness, such as jumbo flats or maisonettes.
Sources: Data.gov.sg, OrangeTee & Tie Research & Analytics
HDB prices grew at a faster rate when measured on psf basis
Unit pricing can also offer deeper insights into certain market dynamics. We observed that the median price of HDB resale flats rose at a slightly faster pace when measured on a psf basis.
For instance, the median price of resale flats increased by 36.4% from $437 psf in 1Q2021 to $597 psf in 1Q2025. Based on price quantum, the median price of resale flats rose at a slightly slower rate of 34.8% from $460,000 to $620,000 over the same period.
The faster pace of price growth, when measured on a psf basis, suggests that there could be an increase in transactions involving smaller flats. It is because smaller properties tend to command a higher unit price compared to larger residences. Moreover, the data also reflects a broader trend of more people downsizing or right-sizing in the public housing market for better housing affordability.
Sources: Data.gov.sg, OrangeTee & Tie Research & Analytics
More flats are sold at higher psf prices
The number of flats sold at higher psf prices has increased over the years. For example, the proportion of flats sold for more than $700 psf rose significantly from 3.9% in 2019 to 24.7% from January to April 2025, according to HDB caveat data. In contrast, 83.4% of all flat transactions were priced at $500 psf or below in 2019, and this percentage fell to just 10.4% in the first four months of this year.
At the upper end of the price spectrum, 1,609 resale flats were sold for over $1,000 psf from 1995 to April 2025. More than 40% of these transactions, or 694 units, occurred in 2024, up from just six units in the pre-pandemic period of 2018 and 14 units in 2019. This year, 392 flats were sold at this price point in the first four months.
The highest unit price recorded was $1,500 psf for a 14-year-old, four-room flat at the Pinnacle@Duxton, soaring above 49 storeys, that was transacted in March this year at $1.518 million. This psf price was almost 2.5 times the median price at $597 psf in 1Q2025.
Sources: Data.gov.sg, OrangeTee & Tie Research & Analytics
The next priciest units were three four-room flats within the same project sold for $1,448 psf in May 2024; $1,413 psf in December 2024; and $1,409 psf in December 2023.
At these price points, some resale flats have already surpassed the psf prices of some private homes, such as smaller or slightly older resale condominiums in the suburban and city fringe areas.
Sources: Data.gov.sg, OrangeTee & Tie Research & Analytics
A small proportion still
Nevertheless, the number of resale flats transacted for over $1,000 psf constitutes a small proportion of the total transactions. In 2019, 14 of the 22,186 transactions (0.1%) were transacted above $1,000 psf. Such transactions rose to 392 units in January-April 2025, accounting for 4.5% of the 8,616 total units sold during this period.
Conclusion
Evaluating flat transactions using both unit pricing and price quantum can provide a more holistic approach for buyers to compare flats across diverse neighbourhoods, layouts, and designs. It is useful as units become smaller and variations of flat types have evolved.
Unit price comparison can also help buyers make an objective assessment of whether they are receiving the best value for the space they are paying for.
Christine Sun is the chief researcher & strategist at OrangeTee Group, part of Realion Group
