The Housing Development Board (HDB) resale market in Singapore has demonstrated resilience, with prices rising for the 20th consecutive quarter. However, the pace of growth has slowed, with a 1.6% increase in the first quarter of 2025, down from 2.6% in the previous quarter, according to the latest public housing data. This marks the slowest growth since Q4 2023, when prices rose by 1.1%.
The number of towns experiencing quarterly price growth decreased slightly from 20 in Q4 2024 to 19 in Q1 2025. Meanwhile, towns with price declines increased from six to seven.
Clementi, Marine Parade, Bukit Merah, and Queenstown saw the most significant price increases, although smaller than the previous quarter’s gains in the Central Area and Toa Payoh. Conversely, the Central Area and Geylang experienced the largest price declines in Q1 2025.
Resale volume increased by 2.6% from 6,424 units in Q4 2024 to 6,590 units in Q1 2025. However, this represents a 6.8% decline compared to Q1 2024, marking the lowest Q1 volume since the onset of the pandemic in 2020. The market faced competition from the primary market, with over 10,000 new flats introduced during the Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises in February 2025.
Rental demand also surged, with approved applications to rent out HDB flats rising by 12.3% from Q4 2024 to Q1 2025. Year-on-year, rental applications increased by 2.8%. The rise in foreign students and expats returning to Singapore, coupled with a stable employment outlook, contributed to this demand.
Looking ahead, the market’s stability will depend on factors such as job security, household income growth, and mortgage rate fluctuations. The ongoing trade war and rising inflation could lead to sustained elevated interest rates, potentially impacting buyer behaviour. Sellers of premium flats may need to adjust their price expectations to remain competitive in a cautious market.
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