HDB resale prices have continued their upward trajectory for the 21st consecutive quarter, with a 0.9% increase in Q2 2025, according to Christine Sun’s, Chief Researcher & Strategist, Realion Group, analysis of the latest public housing data. This marks a slowdown from the 1.6% rise in Q1 2025 and reflects a broader trend of decelerating price growth. The year-on-year increase is also lower than the 2.3% recorded in Q2 2024.
The slower pace of price growth is attributed to a substantial increase in the supply of new flats, with over 20,000 new build-to-order (BTO) and sale-of-balance flats (SBF) launched in February and July. Many of these new flats are in desirable locations and offer shorter completion times, alongside generous grants and deferred income assessments for eligible buyers.
Despite the slowdown, the current streak of price growth is the longest ever recorded, surpassing the 20 consecutive quarters from Q4 1991 to Q4 1996. However, the recent increases are modest compared to the dramatic spikes of the 1990s, when prices surged by 294.4%.
Resale volume also saw a rise, increasing by 7.8% from 6,590 units in Q1 2025 to 7,102 units in Q2, likely due to the absence of BTO launches in the second quarter. Year-on-year, however, resale volume declined by 3.4%.
HDB rental demand is recovering, with a 4.2% increase in approved rental applications from Q1 to Q2 2025. As private rents become more competitive, rent prices are expected to rise modestly by 1 to 2% for the year.
Looking ahead, HDB resale price growth is expected to continue modestly, driven by stable economic fundamentals and declining interest rates. Prices may rise by 4 to 5.5% for the whole of 2025, with 27,000 to 28,000 resale homes anticipated to be transacted. The Draft Master Plan 2025 could boost interest in areas like Bishan, Dover, and Sengkang, as new community hubs and amenities are developed.
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