Although the relentless march of rising housing costs has frustrated many, the fourth quarter of 2025 finally brought a noticeable pause to the chaos. For the first time since the opening quarter of 2020, resale prices for Housing and Development Board flats remained completely flat, offering a rare moment of relief for prospective homeowners. This welcome stagnation marks an extraordinary shift from the frenetic energy of previous years, signaling that the overheated market is finally taking a well-deserved breather.
The annual growth rate for 2025 eventually settled at 2.9 percent, marking a stark drop from the intense 9.7 percent surge seen in 2024, making this the slowest year for price growth since 2019. It appears that buyers are no longer rushing in blindly, as resale volumes also took a considerable hit.
Transactions dropped notably during this cooling period, with only 5,129 units changing hands in the fourth quarter, representing an 18.8 percent decline from the same period a year prior. Even looking at the full year, the total volume of 26,042 units was a distinct step down from 2024’s figures, suggesting that buyer resistance to stratospheric prices is becoming a tangible trend. To put this current downturn into perspective, the market in 2023 experienced a much smaller 4.2% decline.
However, not every segment of the housing market got the memo about cooling down. Remarkably, the number of million-dollar flat transactions actually climbed by 2.3 percent during the same quarter, defying the broader slowdown. This specific niche remains resilient, fueled largely by newer, attractive flats in mature estates reaching their Minimum Occupation Period availability. The increasing prices of Executive Condominiums, now reaching up to $1.7M for 1,000 square feet units, have further pressured upper-middle income families to consider premium HDB options.
Analysts suggest that this split reality, featuring overall stagnation mixed with high-end resilience, will likely continue well into 2026. While the general market stabilizes, a fresh supply of premium flats hitting the secondary market prevents average prices from correcting sharply.
Looking ahead, the government plans to launch 19,600 Build-To-Order flats in 2026 across three exercises, including over 4,000 units with wait times under three years. To supplement these new homes, the April launch will run concurrently with a Sale of Balance Flats exercise involving approximately 3,000 units. With 13,484 existing flats reaching their five-year mark in 2026, nearly double the figure from 2025, buyers can expect better options, reduced anxiety, and more sustainable entry prices moving forward.
