Singapore Property Market 2025: HDB Resale Prices to Grow at Slower Pace Amid More BTO Launches and Private Market Shift

The HDB resale prices in Singapore are expected to increase at a slower pace in 2025, according to top property analysts. The moderation comes as the government ramps up Build-to-Order (BTO) flat launches and lower housing loan interest rates attract more buyers to the private property market.

HDB Resale Prices Forecast 2025

After a strong 9.7% surge in 2024, experts now predict that HDB resale price growth will range between 3.5% and 8% in 2025.

• Christine Sun, Chief Researcher at OrangeTee Group, forecasts a 4% to 6% rise.

• Mohan Sandrasegeran from Singapore Realtors Inc expects 3.5% to 5.5% growth.

• Lee Sze Teck of Huttons projects a 5% to 8% increase.

This slower growth trend reflects shifting demand, driven by policy changes and alternative housing options.

More BTO Flats with Shorter Waiting Times

In 2025, 19,600 BTO flats will be launched, including 3,800 flats with a waiting time of under 3 years, announced National Development Minister Desmond Lee. This shorter waiting time is expected to divert demand from the resale market, especially as fewer flats (6,974 units) reach the Minimum Occupation Period (MOP) – the lowest in 11 years.

Additionally, the upcoming Sale of Balance Flats (SBF) exercise in February 2025 will offer over 5,500 flats, with around 40% already completed. These ready-to-move-in units provide a highly attractive option for homebuyers seeking immediate occupancy, further cooling demand for resale flats.

HDB Resale Transactions and Policy Cooling Measures

Despite strong price growth, HDB resale transactions dropped by 21.1% in Q4 2024 compared to the previous quarter. However, overall resale volume rose by 8.4% for the full year, reaching 28,986 units.

The government’s cooling measure in August 2024 – lowering the loan-to-value (LTV) limit – is also expected to temper resale price growth. Analysts believe this intervention supports a stable and sustainable market for the long term.

Private Property Market Outlook 2025

On the private residential property front, prices rose 2.3% in Q4 2024 and 3.9% for the full year, slowing from 6.8% in 2023, according to the Urban Redevelopment Authority (URA).

For 2025, private property prices in Singapore are projected to grow between 3% and 7%, fueled by:

• New project launches (22 launches expected, 12,400 units)

• Limited resale supply

• Strong HDB upgrader demand

• Lower interest rates

Major new launches like Bagnall Haus and The Orie in early 2025 received strong take-up rates, signaling solid buyer confidence.

Additionally, only 10,600 private units were completed in 2024, with 55,500 units projected to come online over the next few years – potentially keeping upward pressure on prices due to short-term supply tightness.

Buyers Advised to Stay Prudent

While the market outlook remains positive, analysts caution buyers to be financially prudent.

“Avoid over-leveraging and focus on long-term affordability,” said Mr. Sandrasegeran. “The evolving macroeconomic conditions and interest rate changes require careful planning.”

Summary of Key Singapore Real Estate Trends in 2025:

• HDB resale prices to grow 3.5%–8%, slower than in 2024.

• BTO flats with shorter wait times are a strong alternative.

• SBF 2025 offers completed units, increasing supply.

• Private property prices to grow 3%–7%, driven by new launches and low completions.

• Buyers urged to be cautious amid rate uncertainty.

For updated insights on Singapore property market trends, including HDB prices, BTO launches, and private condo sales, stay tuned to our real estate news and guides.