HDB resale prices up 0.9% in Q2; slowest quarterly rise since 2020
Resale price growth is likely to stay moderate in 2025 amid economic headwinds and more BTO flats entering the market, say analysts.
Panoramic view of Bishan. (Photo: iStock/catchlights_sg)
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SINGAPORE: Prices for public resale flats rose at a slower pace of 0.9 per cent in the second quarter of 2025, according to flash estimates from the Housing and Development Board (HDB) on Tuesday (Jul 1).
This marks the third consecutive quarter of moderating price growth, and is the lowest quarter-on-quarter growth since Q2 2020.
The resale price index for Q2 2025 eased from 1.6 per cent in the previous quarter and 2.6 per cent in the fourth quarter of 2024.Â
HDB said that the resale volume for the quarter stood at 6,981 transactions up to Jun 29, 5 per cent lower than the 7,347 transactions recorded during the same period last year.
It also advised households to be prudent in their property decisions, noting that Singapore’s GDP growth for 2025 is expected to moderate from last year.
"Against this backdrop of slowing economic growth and increasing headwinds arising from escalating global trade conflicts, there are also early signs of moderating labour demand," it added.
"Given the highly uncertain macroeconomic outlook, households should continue to exercise prudence when purchasing properties and taking on mortgage loans."
Ms Christine Sun, chief researcher and strategist at Realion Group, said that the HDB resale price growth is expected to continue rising modestly for the rest of the year because of "stable economic fundamentals and declining interest rates".
"However, significant price spikes may be tempered in the longer term, as the overall flat supply is poised to rise in the coming years, leading to more competition among sellers," she added.
UPCOMING FLATS
July will see the launch of around 5,500 Build-to-Order (BTO) flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands.
A concurrent Sale of Balance Flats (SBF) exercise of about 3,000 flats will also be conducted.
With the 5,590 SBF flats launched in February, the total SBF supply in 2025 will exceed 8,500 flats, HDB said.Â
The increase in BTO supply may have slowed down the pace of price growth in the secondary market as buyers now have more housing options, said Ms Sun.
"The continual ramp-up in the number of Sale of Balance Flats will also compete for buyers with the resale market since these flats are closer to completion or are already completed," she added.
Ms Sun also added that a slowdown in the market is anticipated due to the heightened geopolitical tensions in the Middle East and the ongoing global trade war.
"Due to the push back of the mid-year BTO exercise from June to July, we may only see buyers returning to the resale market in later months," said Mr Eugene Lim, Key Executive Officer at ERA Singapore.Â
“With the ongoing headwinds and slowing economic growth, all of these compelling BTO options on the horizon, HDB buyers may take a wait-and-see approach to evaluate their options fully," he added.
Details on the new flats will be shared at the July 2025 BTO and SBF exercises, HDB said.Â
Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc said: "Singapore’s public housing ecosystem is becoming more responsive, with supply-side measures and policy flexibility enhancing affordability and access. While demand for larger flats in mature estates may remain firm due to limited availability, the overall price trajectory is expected to remain stable."
"Hence, we expect HDB resale prices to grow moderately by 3.5 per cent to 5.5 per cent in 2025," he added.
"The market is likely to benefit from a balanced mix of supply, steady demand, and potential policy adjustments, supporting a more sustainable and inclusive housing landscape for the long term."
Flat buyers who wish to participate in the July 2025 BTO and SBF exercises must have a valid HDB Flat Eligibility (HFE) letter when they submit their flat application, said HDB.
The HFE letter will inform buyers about their eligibility for purchasing a new or resale flat, CPF housing grants, and HDB housing loans, including the respective grant and loan amounts.
"We have announced earlier that flat applicants who wish to participate in this sales exercise should apply for an HFE letter and submit all required documents by 15 May 2025," said HDB.
"As the number of HFE letter applications tends to peak closer to sales exercise leading to longer processing time, those who did not do so by 15 May 2025 may not receive their HFE letters in time to apply for a flat in the BTO and SBF exercises."
Starting from July, the HFE letter application e-Service will be temporarily unavailable during the sales exercise, allowing HDB to "channel (their) resources to provide a smoother flat application experience for flat applicants".
New and resale flat buyers with a valid HFE letter as well as those who have already submitted an HFE letter application prior to the July 2025 sales exercises will not be affected, said HDB.
