HDB resale prices rise at a slower 1.5% pace in Q1: flash data
Meanwhile, resale volume is down 7.7% in tandem with slower market conditions
[SINGAPORE] Housing and Development Board (HDB) resale prices continued to rise in the first quarter of 2025, albeit at a slower pace of 1.5 per cent compared with the 2.6 per cent recorded in the fourth quarter.
Resale prices also rose slower than the average quarterly growth of 2.3 per cent in 2024, flash data from HDB indicated on Tuesday (Apr 1).
“We are seeing early signs of moderation in price growth across both the public and private housing markets,” said National Development Minister Desmond Lee in a Facebook post.
Price growth was dragged down by the record low number of about 8,000 flats that fulfilled the minimum occupation period (MOP) in the past 10 years and the largest Sale of Balance Flats (SBF) exercise in February, said Huttons Asia’s senior director of data analytics Lee Sze Teck.
The February SBF exercise launched more than 5,500 flats, some of which are already completed or have a shorter waiting time, pulling some buyers away from the resale market, he added.
Citing HDB caveat data, OrangeTee Group’s chief researcher and strategist Christine Sun said that price growth has slowed down for most flat types. The median price of four-room flats, for instance, crept up 1.9 per cent in Q1 – slower than the 2.2 per cent growth in Q4.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Transaction volumes of resale flats stood at 6,392 units as at Mar 27, down 7.7 per cent from the same period the previous year, marking the lowest quarterly volume since the second quarter of 2020, said Huttons Asia’s Lee.
The biggest drop in volume was seen in the executive/multi-generation segment, followed by the four- and five-roomers. “With a lower number of MOP flats, buyers have (fewer) options, thus resulting in a bigger drop in volume,” he added.
Million-dollar flats
The limited supply of resale units led to higher prices, with the average price of a million-dollar flat amounting to S$1.13 million in Q1, up 0.8 per cent from the previous quarter, said Huttons Asia’s Lee.
SEE ALSO
Million-dollar flat transactions fetched a new record, with 339 resale units sold in Q1, up 18.9 per cent from the previous quarter.
Analysts observed more demand in the mature estates. Huttons Asia’s Lee said that Toa Payoh had the highest number of million-dollar flats at 66, followed by Bukit Merah (50) and Queenstown (41).
PropNex’s head of research and content Wong Siew Ying said that more four-room flats were sold for at least S$1 million as compared to five-room units. She expects this trend to continue amid limited supply of five-room resale flats in attractive central locations.
Supply tightness to ease
In July, HDB will launch about 5,400 Build-To-Order (BTO) flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh and Woodlands.
It will also launch about 3,000 flats in the second SBF exercise in July this year. Together with the February SBF exercise, the combined annual supply will be about 8,500 flats, the largest since 2017, said Minister Desmond Lee.
HDB will release more than 50,000 BTO flats from 2025 to 2027, including 19,600 BTO flats to be put on the market this year. In total, about 130,000 flats will be rolled out from 2021 to 2027, increasing public housing stock by 11 per cent.
Demand for resale flats could ease as more BTO flats and units with shorter waiting times are launched, said Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors.
The increased supply of balance units could also absorb some demand from the resale market, he added, noting that the next SBF exercise will provide homebuyers opportunities to secure flats in well-located areas at more affordable prices compared to those for resale flats.
Minister Desmond Lee noted some supply tightness in the resale market currently. However, as more flats reach their MOP – from about 8,000 this year to 13,500 next year and 19,500 in 2028 – more resale units will be put on the market and “supply tightness will ease”.
From the July BTO sales exercise, the allocation quota for second-timer families buying three-room and bigger flats will be raised by five percentage points. The deferred income assessment scheme will also be expanded to cover young couples where only one party is a full-time student or national serviceman.
The new Family Care Scheme (Proximity) will give priority to homebuyers applying for a flat to live with or near their parents. HDB’s Fresh Start Housing Scheme will also be enhanced, with higher housing grants to enable more public rental households with children to attain home ownership.
Analysts expect resale prices to continue rising at a slower pace, between 3 and 8 per cent in 2025, amid robust demand and higher public housing supply. They also project transaction volumes to be between 26,000 and 29,000.
PropNex’s Wong expects sales to pick up in Q2 and the third quarter as some unsuccessful applicants turn to the resale market. She said that demand will be supported by various groups, including first- and second-timer families, as well as former private homeowners.
Minister Desmond Lee noted that the increased supply, amid global economic uncertainties, will continue to moderate the property market.
OrangeTee’s Sun expects the HDB resale market to remain robust amid global uncertainties. This is because Singapore’s public housing market is likely to be more significantly affected by domestic factors, such as a growing number of upgraders in the HDB sector and private homeowners downsizing to resale flats.
Copyright SPH Media. All rights reserved.
