The Housing Development Board (HDB) resale market experienced its first decline since 2019, with prices dropping by 0.1% in the first quarter of 2026. This decrease is attributed to a steady supply of Build-To-Order (BTO) flats over the past four years, some with waiting times of three years or less, and the Sale of Balance Flats (SBF) exercises offering alternatives to resale flats.
Transaction volumes for HDB resale flats reached 6,258 in Q1 2026, marking a 4.6% decrease compared to the same period in 2025. This represents the lowest first-quarter volume since 2021, likely influenced by the concurrent launch of BTO and SBF exercises in February 2026, which drew demand away from the resale market. February’s BTO launch saw 4,692 flats attracting over 13,000 applicants, whilst the SBF exercise garnered more than 15,000 applicants.
Despite the overall decline, some areas remained popular. Punggol, Sengkang, Tampines, Woodlands, and Yishun accounted for 35.5% of total transactions in Q1 2026. However, prices in 10 out of 26 HDB towns contracted, with Clementi experiencing the largest decline at 6.9%.
The number of million-dollar flat transactions increased, with 412 units sold for at least $1m in Q1 2026, a 17.4% rise from the previous quarter. The average price of these flats was $1.151m, slightly lower than the previous quarter’s $1.165m.
Looking ahead, the HDB resale market may face a soft landing in 2026, with around 6,900 BTO flats set to be offered in June. The influx of new flats, particularly in desirable locations like Bedok, Queenstown, and Toa Payoh, may continue to impact the resale market, potentially increasing the number of million-dollar transactions. Resale flat prices are expected to fluctuate between -2% and 2% throughout the year.
