Singapore's HDB Resale Prices Rise 0.9% in Q2 2025 Amid Economic Uncertainty

SINGAPORE – Housing Development Board (HDB) resale prices in Singapore experienced a modest increase of 0.9% in the second quarter of 2025, marking the lowest quarter-on-quarter growth since 2020. This growth follows a 1.6% rise in the first quarter, as reported by the HDB on July 1, 2025. The ongoing economic uncertainties have significantly influenced this trend, as both resale prices and transaction volumes exhibit signs of softening.

The HDB resale price index’s gradual increase reflects a broader context of economic caution. According to the Ministry of Trade and Industry, Singapore’s gross domestic product (GDP) growth is anticipated to moderate this year, largely due to global trade tensions and early indicators of a cooling labor market. The HDB stressed the importance of exercising prudence in property purchases amid these uncertainties, advising households to carefully assess their financial situations before committing to mortgage loans.

Data released by the HDB indicated that a total of 6,981 flats were sold between April and June 2025, a decline of 5% from the 7,352 transactions recorded during the same period in 2024. This downturn in resale activity underscores the changing dynamics within the housing market, as potential buyers adopt a wait-and-see approach in light of upcoming new flat launches.

Ms. Wong Siew Ying, head of research and content at PropNex Realty, indicated that the slower growth rate is more sustainable and healthier for the HDB resale market. Wong has revised the firm’s full-year forecast for HDB resale price growth down to between 4% and 5%, a decrease from the previous estimate of 5% to 7%. She noted that the anticipated launches of Build-To-Order (BTO) flats and Sale of Balance Flats (SBF) are likely to divert some demand away from the resale market.

Eugene Lim, key executive officer at ERA Singapore, echoed these sentiments, emphasizing that buyers are likely to be more selective and cautious, especially with new developments in popular locations like Bukit Merah, Clementi, Toa Payoh, and Tampines, where significant BTO projects are set to be launched. He stated, “The upcoming BTO project in Mount Pleasant is particularly noteworthy, as it represents the first offering in that area in over a decade, coinciding with the opening of the Mount Pleasant MRT station.”

In July alone, around 5,500 BTO flats will be made available, along with 3,000 units under the SBF exercise. This influx of new supply is expected to further influence market dynamics.

Despite the overall slowdown in price growth, certain segments demonstrated resilience. Ms. Christine Sun, chief researcher and strategist at Realion Group, reported a notable 3.8% increase in prices for executive flats during the second quarter, compared to a modest 1.5% increase in the previous quarter. Furthermore, a record sale of a five-room resale flat in Dawson Road reached $1.659 million, contributing to a total of 415 flats sold for over $1 million from April to June 2025, marking a 19% increase from the previous quarter.

Analysts predict that the HDB resale market will continue to stabilize throughout the remainder of 2025. PropNex anticipates total resale volumes to hit between 27,000 and 28,000 flats by year-end. In light of the current price moderation, Wong suggested that it may be timely for the government to reconsider the 15-month wait-out period currently imposed on former private home owners wishing to purchase HDB resale flats. This policy, in place to regulate market access, may be adjusted to facilitate smoother transitions for those looking to downsize.

As the HDB resale market navigates through these economic challenges, stakeholders are urged to remain vigilant and responsive to ongoing developments. The implications of these changes could reverberate throughout the broader property landscape in Singapore, affecting both buyers and sellers in the months ahead.