Singapore HDB Resale Prices Rise 0.9% in Q2 2025 Amid Economic Challenges

SINGAPORE - The Housing and Development Board (HDB) reported on July 1, 2025, that the resale prices of public flats increased by 0.9% in the second quarter of 2025, marking the slowest growth rate since the second quarter of 2020. This data comes amid a series of economic challenges affecting the housing market, including global trade tensions and a projected slowdown in Singapore's GDP growth.

The latest figures reveal a significant decline in the quarter-on-quarter growth rate, down from 1.6% in the previous quarter and 2.6% in the fourth quarter of 2024. The resale volume also saw a decrease, with 6,981 transactions recorded up to June 29, 2025, compared to 7,347 transactions during the same period last year. HDB officials have advised households to exercise caution in their property decisions, given the uncertain macroeconomic environment and early signs of moderating labor demand.

According to Christine Sun, chief researcher and strategist at Realion Group, while HDB resale price growth is expected to remain moderate due to stable economic fundamentals and declining interest rates, the introduction of additional Build-to-Order (BTO) flats may lead to increased competition in the housing market. "With more options available, buyers may be less inclined to engage in bidding wars for resale properties," she stated.

In July 2025, HDB plans to launch approximately 5,500 BTO flats in various locations including Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands. This will be complemented by a Sale of Balance Flats (SBF) exercise, which aims to release around 3,000 additional units. Sun noted that this increase in supply could further temper resale price growth as buyers have more choices at their disposal.

Eugene Lim, Key Executive Officer at ERA Singapore, echoed these sentiments, suggesting that buyers may adopt a 'wait-and-see' approach given the current economic headwinds and the influx of upcoming BTO options. He emphasized that the shifting dynamics of the property market could lead to a slowdown in resale transactions until buyers reassess their options.

Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc., provided further insight into the public housing ecosystem, stating that while demand for larger flats in mature estates remains strong, the overall price trajectory is expected to stabilize. He anticipates a modest growth of 3.5% to 5.5% in HDB resale prices for 2025, driven by a balanced mix of supply and demand.

To participate in the upcoming BTO and SBF exercises, flat buyers are required to have a valid HDB Flat Eligibility (HFE) letter, which outlines their eligibility for purchasing flats and available housing grants. HDB has advised that applicants should ensure all necessary documents are submitted by May 15, 2025, to avoid delays in processing their applications.

As HDB prepares for the launch of new flats, the implications of these economic factors on Singapore's real estate market remain significant. Analysts predict that the combination of increasing supply and cautious buyer sentiment may lead to a more sustainable and inclusive housing landscape in the long term.