HDB Resale and Private Property Prices in Singapore Slow Down Amid Economic Uncertainty

Singapore, Q1 2025 – After an impressive 20-quarter bull run, Singapore’s property market is showing clear signs of moderation. Both HDB resale flats and private home prices recorded slower growth in the first quarter of 2025, driven by increased housing supply and shifting market dynamics.

HDB Resale Price Growth Slows to 1.6%

HDB resale flat prices rose by just 1.6% in Q1 2025 — the slowest growth since Q4 2023 (1.1%). In comparison, Q3 and Q4 2024 saw stronger growth of 2.7% and 2.6%, respectively.

According to OrangeTee, only 19 HDB towns registered price gains this quarter (down from 20), while 7 towns saw price declines (up from 6).

One key reason? Increased competition from new HDB launches. In February 2025 alone, over 10,000 new BTO and Sale of Balance Flats (SBF) were released, drawing potential buyers away from the resale market.

Resale Volume: A Mixed Picture

Quarter-on-quarter, resale transactions climbed 2.6% to 6,590 units. However, year-on-year, the volume fell by 6.8%, marking the lowest first-quarter transaction volume since Q1 2020.

OrangeTee’s Christine Sun notes that demand could remain stable if job security and income growth persist. Buyers may also continue to shift from the private sector or upgrade within the HDB market.

ERA Singapore’s Eugene Lim predicts a potential rebound in Q2, as failed BTO applicants return to the resale market. Upcoming launches in Clementi, Tampines, and Toa Payoh are expected to be in high demand.

Private Home Prices Also Slow Down

URA’s Private Residential Property Index rose just 0.8% in Q1 2025 — far below the 2.3% growth recorded in the previous quarter. Here’s the breakdown:

• Non-landed homes: +1.0% (vs +3.0% in Q4 2024)

• Landed homes: +0.4% (vs -0.1%)

• By region:

  • City fringe (RCR): +1.7%

  • Core central region (CCR): +0.8%

  • Suburbs (OCR): +0.3%

Developers sold 3,375 new private homes (excluding ECs), slightly down from 3,420 units in Q4. Suburban projects like Parktown Residence and Lentor Central Residences drove strong sales, making it the highest suburban sales figure in over a decade.

Rental Market: HDB Sees Strong Growth

The HDB rental market surged in Q1 2025 with 9,662 approvals, the highest in five quarters, up 12.3% from Q4.

Driving this demand:

• Families waiting for BTO flats

• Foreign workers and international students

• Limited supply of flats that have fulfilled the Minimum Occupation Period (MOP)

Meanwhile, the private home rental market remained modest, growing by only 0.4% amid cautious business expansion and reduced housing allowances for expats.

What Does This Mean for Buyers and Investors?

If you’re planning to buy an HDB resale flat or invest in private property, this is the time to watch market signals closely. While prices are still rising, the slower pace reflects growing resistance from buyers and a more cautious economic climate.

That said, underlying demand remains healthy — especially for more affordable options in the resale and EC markets. Making smart, data-driven decisions will be key to navigating the property market in 2025.