Flat Type Median

The flat type median is the middle resale price of all HDB flats sold within the same flat type over a given period. Flat type refers to categories such as 3 room, 4 room, 5 room, or Executive HDB flats, not the location or age of the flat. When all resale prices for that flat type are arranged from lowest to highest, the median is the price that sits right in the middle. It is often used as a quick reference to understand what a “typical” HDB flat of that type is transacting for, but it does not describe the value of every flat equally.

For a first-time buyer, it helps to think of the flat type median as a broad market signal rather than a precise valuation. It shows what most buyers are paying for that category overall, not what your specific unit is worth. HDB Two flats of the same type can still be priced very differently due to factors like remaining lease, floor level, location, and layout differences. The flat type median is useful for orientation, but it should never be used on its own to decide an offer or asking price.

Why This Matters For Buyers And Sellers

For HBD Buyers

The flat type median often becomes the first number seen during research. Many buyers use it to decide whether a listing looks expensive or cheap at a glance. This can influence how aggressively they bid, whether they even view a unit, or whether they stretch their budget. If the median is misunderstood, buyers may either overpay for a weaker flat or miss out on a strong one that appears “above median” but is actually well-priced for its profile.

For HBD Sellers

The flat type median heavily shapes price expectations. Sellers often anchor their asking price to the median and assume their flat should transact near or above it. This affects pricing confidence, negotiation behaviour, and how long a flat stays on the market. When sellers rely on the flat type median without understanding what actually makes up that number, they risk mispricing their flat and losing serious buyers early in the process.

How HDB Insights Uses This Term

At HDB Insights, the flat type median is treated as a starting reference, not a valuation tool. We recognise that the resale market does not price all HDB flats of the same type equally. Transaction data consistently shows that prices cluster based on remaining lease, relative floor position, and usable floor area, even within the same flat type.

Instead of relying on a single flat type median, HDB Insights first fixes the flat type to ensure like-for-like comparison. We then break transactions within that flat type into practical groups that reflect real buyer behaviour. This allows us to explain whether changes in the median are driven by genuine price movement or by shifts in the mix of flats being sold. The flat type median is therefore used to provide context, while deeper analysis is used to guide real decisions.

What This Looks Like In Real Life

Imagine a first-time buyer searching for a 4 room HDB flat in a mature estate. They see that the flat type median for 4 room flats has risen recently and conclude that prices are climbing fast. Based on this, they rush to place a strong offer close to the median, fearing they will be priced out if they wait.

However, what the median does not show is that many of the recent transactions were for higher-floor flats with longer remaining leases and larger layouts. The buyer’s target unit may be a lower-floor flat with a shorter lease, which typically trades below the flat type median. By relying solely on the median, the buyer risks paying more than what similar flats have actually transacted for.

Now consider a seller in the same estate. They notice that the flat type median has increased and decide to list their flat above it, assuming the market will support the price. After several weeks with few viewings, they become frustrated. The issue is not weak demand, but a mismatch between the seller’s flat profile and the flats that pushed the median higher. In both cases, the flat type median created confidence, but not accuracy.

Common Misunderstandings And Mistakes

A common mistake is assuming that the flat type median represents a fair price for every HDB flat of that type. In reality, it represents the middle of a wide range of transactions, many of which differ significantly in quality and desirability. Buyers often treat the median as a ceiling or target price, while sellers treat it as a floor, even though neither assumption is consistently valid.

Another misunderstanding is believing that a rising flat type median always means prices are going up for all flats. In practice, the median can rise simply because more premium flats were sold during that period. This is known as a mix shift. Without understanding what types of HDB flats contributed to the median, buyers and sellers may misread the market direction and make poor timing decisions.

There is also a tendency to compare medians across towns or years without considering changes in flat composition. Newer flats entering the resale market, changes in buyer preferences, and evolving financing rules all influence which flats transact more frequently. When these factors are ignored, the flat type median becomes a misleading shortcut rather than a helpful guide.

Flat Type Median FAQs