As 2025 approaches, the dynamics surrounding the Minimum Occupation Period (MOP) for HDB flats are set to create a notable impact on the resale market. With just 6,974 flats reaching MOP this year, the supply of newly available units will be the lowest seen in over a decade. This shortage means that those looking to buy an HDB resale flat might find themselves in a tighter market, leading to increased prices.
As supply dwindles, sellers may bask in the seller’s market, especially for spacious units that could attract enthusiastic buyers. Market analysts project a price increase between 4% to 6% for 2025. This anticipated growth could extend the ongoing increase in resale prices to an impressive 23 consecutive quarters, provided no significant macroeconomic events intervene. Interestingly, the current growth streak began in Q1 2020 and has been notable for its 19 consecutive quarters.
Curiously, demand for larger HDB units, such as Executive flats, might rise as families gravitate towards homes that accommodate multiple generations. However, some potential buyers could be tempted by the allure of private property due to lower interest rates—a tantalizing prospect in attaining luxury. Notably, more BTO flats are set to be launched in 2025, which may further influence buyer preferences.
Moreover, the recent surge in Build-to-Order (BTO) projects, designed to meet buyers’ needs more effectively, could create additional options for home seekers. These new developments provide shorter waiting times and more attractive prices, likely drawing some attention away from the resale market. Government cooling measures continue to influence market stability, with stamp duties playing a critical role in regulating buyer demand and preventing market overheating.
However, given that many buyers still prioritize space, demand for larger resale flats may persist, offsetting potential dips in interest caused by newer offerings. While prices are expected to grow, the trajectory of increases might slow compared to a notable 9.7% rise noted in 2024.
Prices could see an increase between 3.5% and 8% as the MOP-driven supply challenges continue to exert upward pressure. Ultimately, as buyers navigate these changing landscapes, it promises to be an engaging year for anyone involved in the HDB resale market in Singapore.
