As the housing landscape continues to evolve, the HDB resale market has once again caught the spotlight with a steady, though slightly slower, price increase of 1.6% in the first quarter of 2025 compared to the last quarter of 2024. This growth, while positive, is a step down from the 2.6% jump seen in the previous quarter and below the 2.3% average rise throughout 2024.
Still, it’s impressive that the Resale Price Index hit 201.0, marking the 20th straight quarter of gains and a whopping 52% climb since mid-2020. That’s a long winning streak, even if the pace is cooling a bit!
Transaction numbers paint a mixed picture, with 6,590 flats resold in Q1 2025, up 2.6% from the prior quarter. However, compared to the same period last year, sales dipped by 6.8%, showing that not everyone is rushing to buy just yet. Year-on-year, the price growth for HDB resale flats stood at a robust 9.4%, significantly outpacing the 3.3% growth for private residential properties.
Analysts point to increased buyer activity early this year, boosted by the largest Sale of Balance Flats exercise in February 2025, which gave folks more options to weigh. It’s like a housing buffet—more choices mean less pressure to snap up a resale flat right away.
Price growth, though, is clearly slowing, with this 1.6% rise being the smallest in five quarters. Experts suggest this moderation could continue, thanks to more Build-To-Order and balance flat launches easing demand on the resale scene. Additionally, the upcoming launch of about 5,400 BTO flats in July 2025 is expected to further divert buyer interest from the resale market. The drastically reduced supply of only 8,000 flats reaching their Minimum Occupation Period in 2025 is also contributing to the lower transaction volumes in the resale segment.
Add in buyer caution and global economic worries, like trade tensions, and you’ve got a market that’s resilient but not racing ahead. Still, stable jobs and the fact that most buyers are local families looking for a home—not investors—keep things steady.
Looking ahead, the outlook mixes caution with hope. While risks like U.S. tariffs could dampen spirits, analysts expect prices to hold or grow modestly. Government policies are also in play, aiming to keep housing affordable and stable.
