Singapore, April 2025 — Resale flat prices in Singapore increased by 1.6% in Q1 2025, showing a slower pace of growth compared to the previous quarter. Meanwhile, resale transactions rose 2.6%, reflecting steady demand in the public housing market despite global economic uncertainties.

The Resale Price Index (RPI) climbed to 201.0, down from the 2.6% quarter-on-quarter increase in Q4 2024 and below the 2.3% average growth per quarter seen in 2024.

Key Factors Behind the Slower Growth in HDB Prices

According to HDB, several factors contributed to the slowdown:

• The largest Sale of Balance Flats (SBF) exercise in February 2025 offered more housing options, easing demand pressure.

• Buyer preferences are gradually shifting toward Build-To-Order (BTO) flats due to shorter waiting times and more affordability.

• Economic headwinds and interest rates—though lower than in 2023—remain relatively high compared to the last decade. “The evolving economic conditions call for prudence when it comes to property purchases and borrowing,” HDB stated.

Q1 2025 Resale Transactions and Rental Data

 Government’s Housing Supply Plans

• HDB will launch 5,400 BTO flats in July 2025 in areas such as Bukit Merah, Clementi, Tampines, and Woodlands.

• A total of 130,000 flats will be launched between 2021 and 2027, boosting Singapore’s public housing stock by 11%.

• The number of flats reaching Minimum Occupation Period (MOP) is expected to grow:

  • 2025: ~8,000 units

  • 2026: ~13,500 units

  • 2028: ~19,500 units “The rise in supply through the BTO and SBF schemes is likely to draw demand away from the resale market,” said Mohan Sandrasegeran, Head of Research at Singapore Realtors Inc (SRI).

Private Residential Market: Cooling Continues

According to the Urban Redevelopment Authority (URA):

• Private home prices rose by 0.8% in Q1 2025, down from 2.3% in the previous quarter.

• Rental prices in the private sector increased by 0.4%, mainly due to reduced supply and a steady stream of foreign renters.

• Landed property rentals rose by 0.3%, while non-landed properties saw a 0.5% rental increase. “Singapore remains a safe haven for ultra-high-net-worth individuals, some of whom are relocating and renting luxury homes,” said Lee Sze Teck, Huttons’ Senior Director.

Conclusion

The Singapore property market remains active, with HDB resale prices rising at a more modest pace and transaction volume growing in Q1 2025. With upcoming BTO and SBF launches offering more supply, resale demand may ease further. Buyers are advised to evaluate their financial readiness and avoid over-leveraging as the market adjusts.

Frequently Asked Questions (FAQ)

Q: Why did HDB resale price growth slow in Q1 2025?
A: Increased supply through the SBF exercise gave buyers more choices, reducing upward pressure on prices.

Q: Is now a good time to buy a resale HDB flat?
A: If you need a home immediately, there are plenty of options. However, be cautious and avoid buying at peak prices.

Q: Will this trend continue in the rest of 2025?
A: With more flats entering the market and economic uncertainty, price growth is expected to stay moderate.

Q: What is an HFE letter and why do I need it?
A: The HDB Flat Eligibility (HFE) letter is required to apply for BTO and SBF flats. Apply early before the May 15 deadline to qualify for the July sales launch.