How is the HDB resale market adjusting its pace in 2025? It appears the frenetic energy of previous years is finally taking a well-deserved breather, settling into a much calmer, yet stable rhythm. To illustrate the intensity of the recent cycle, it is worth noting that resale prices surged by 8.07% year-on-year in the third quarter of 2024.
After soaring by a hefty 9.7% in 2024, resale prices are projected to rise by a more modest 3% to 4% for the full year of 2025, signaling a clear deceleration. Data from the first nine months confirms this cooling trend, showing the price index rose just 2.9%, a significant drop from the 6.9% growth seen during the same period in 2024.
Resale prices are projected to rise a modest 3% to 4%, signaling a clear deceleration.
In fact, the third quarter marked the fourth consecutive quarter of weaker growth, resulting in the slowest pace recorded in five years, which likely comes as a relief to many weary buyers.
Transaction volumes are arguably feeling the chill even more than prices, suggesting that buyers are taking a serious step back to assess their options.
In October 2025 alone, transactions slumped by a substantial 38% month-on-month to 1,343 units, while full-year projections sit between 27,000 and 28,000 units.
Increased supplies of Build-to-Order and Sale of Balance Flats are seemingly tempering demand, diverting some vital attention away from the resale market.
Despite weaker demand, prices are actually holding firm largely due to a remarkably tight supply of newer flats.
The number of flats reaching their Minimum Occupation Period has dropped to 6,974 units in 2025, hitting an 11-year low not seen since 2014.
With fewer options available, especially in mature estates where the MOP volume fell to 45.7%, sellers maintain leverage.
This scarcity explains why, perhaps surprisingly, the number of million-dollar flat transactions reached a record 1,544 units by mid-December, led by 520 4-room and 424 5-room units.
While price resistance is real, keeping the overall market stable, specific segments like efficient 3-room flats still saw an 8.6% year-on-year jump. Meanwhile, budget-conscious buyers are finding value in non-mature estates, which currently benefit from a significant 30% price gap compared to mature towns.
The ongoing Home Improvement Programme targeting 29,000 older flats built in 1997 or earlier has also impacted property values, as blocks requiring 75% affirmative vote often see increased desirability once approved for upgrades.
Ultimately, while the market is definitely quieter and growing slower, the limited turnover of newer homes ensures values remain resilient against a major crash.
