SINGAPORE: Prices for public resale flats rose at a slower pace of 0.9 per cent in the second quarter of 2025, according to flash estimates from the Housing and Development Board (HDB) on Tuesday (Jul 1).
This marks the third consecutive quarter of moderating price growth, and is the lowest quarter-on-quarter growth since Q2 2020.
The resale price index for Q2 2025 eased from 1.6 per cent in the previous quarter and 2.6 per cent in the fourth quarter of 2024.
HDB said that the resale volume for the quarter stood at 6,981 transactions up to Jun 29, 5 per cent lower than the 7,347 transactions recorded during the same period last year.
It also advised households to be prudent in their property decisions, noting that Singapore’s GDP growth for 2025 is expected to moderate from last year.
“Against this backdrop of slowing economic growth and increasing headwinds arising from escalating global trade conflicts, there are also early signs of moderating labour demand,” it added.
“Given the highly uncertain macroeconomic outlook, households should continue to exercise prudence when purchasing properties and taking on mortgage loans.”
Ms Christine Sun, chief researcher and strategist at Realion Group, said that the HDB resale price growth is expected to continue rising modestly for the rest of the year because of “stable economic fundamentals and declining interest rates”.
“However, significant price spikes may be tempered in the longer term, as the overall flat supply is poised to rise in the coming years, leading to more competition among sellers,” she added.
UPCOMING FLATS
July will see the launch of around 5,500 Build-to-Order (BTO) flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands.
A concurrent Sale of Balance Flats (SBF) exercise of about 3,000 flats will also be conducted.
With the 5,590 SBF flats launched in February, the total SBF supply in 2025 will exceed 8,500 flats, HDB said.
The increase in BTO supply may have slowed down the pace of price growth in the secondary market as buyers now have more housing options, said Ms Sun.
“The continual ramp-up in the number of Sale of Balance Flats will also compete for buyers with the resale market since these flats are closer to completion or are already completed,” she added.
Ms Sun also added that a slowdown in the market is anticipated due to the heightened geopolitical tensions in the Middle East and the ongoing global trade war.
“Due to the push back of the mid-year BTO exercise from June to July, we may only see buyers returning to the resale market in later months,” said Mr Eugene Lim, Key Executive Officer at ERA Singapore.
“With the ongoing headwinds and slowing economic growth, all of these compelling BTO options on the horizon, HDB buyers may take a wait-and-see approach to evaluate their options fully,” he added.
Details on the new flats will be shared at the July 2025 BTO and SBF exercises, HDB said.
