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So it’s not too surprising that the number of million-dollar HDB flats hit another consecutive high in June, at 96 units. Average resale flat prices have also continued to rise by 1.8% across the board.  There has been some theorising that once the Plus and Prime models (i.e., the new classification system, replacing the old system of mature vs. non-mature) are out, the upward trend may slow. Or if anything, it may slow due to various other reasons (more BTO supply coming on the market, etc). June’s BTO launch was the last one without the new system, which we’ll see in its full glory .  I’m going to stick to my guns though, and disagree with this. I still think that even with the rollout of the new Plus and Prime models, the prices of resale flats in certain hotspots will remain high. There are several reasons for this: First, the Plus and Prime classification is not retroactively applied. If you had to choose between a Prime/Plus flat with a 10-year MOP, income ceiling, Subsidy Recovery, etc., and one that’s five minutes across the road with such restrictions, which sounds better?  And don’t forget the existing resale flat also has the bonus of already being built.  Second, the demand would remain for Plus and Prime flats despite the increased restrictions. For the crowd that absolutely have a given location, the response to a failed ballot may not be to throw up their hands and give up. They may, instead, opt for a pricier resale flat nearby as a last resort. Intergenerational doesn’t only result in young people buying condos – it can also result in young people having the help to buy high-demand HDB flats, like units at Pinnacle.  Third, the rise of private condo prices. With most new launch condos today being priced above $2,000 psf, more and more homebuyers are being priced out. As such, we can see that some demand has shifted to resale HDB’s – where even million-dollar flats can seem reasonable when viewed from that perspective.  But there hasn’t been any exact detail on the reasons, just that it’s related to misinformation or unrealistic pricing. To which I say, HDB is about to embark on a journey of annoying discovery – one I’ve been on with property portals. I’ve on the portal before; but what I didn’t mention in that article is how much effort it takes to police the listings. From potential scams to indecent exposure*, it’s incredible how people will attempt to use a portal. There’s also a lot of grey areas involved, when it comes to prices and listings.  For example: Is $700,000 unrealistic for a 4-room flat? That’s far from rare these days; but what if the neighbourhood average is $600,000? Or when it comes to “misinformation,” who’s to check that my renovations are really just two years old, or whether they’re worth my claimed value of $100,000?  These aren’t issues the portal’s regulators can’t resolve; but doing so requires a tremendous number of hours, and at some point, they might end up questioning if this is really a good use of their resources (as well as how much further they have to the end of their fraying sanity).  * For more news on the Singapore property market, follow us on Stacked.