The Housing Development Board (HDB) resale market experienced a modest increase in transaction volume during the third quarter (Q3) of 2025, with 7,157 units sold—up 0.8% from the second quarter (Q2). However, this figure represents a 10.9% decline compared to the same period last year, according to Huttons’ latest data.
The year-on-year slowdown is attributed to the simultaneous launch of Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises, alongside a significant policy change in July 2025. HDB’s offering of 1,396 BTO flats with a Shorter Waiting Time (SWT) of less than three years, and over 4,600 SBF flats, including 1,733 completed units, likely diverted demand from the resale market. Additionally, anticipation for the October 2025 BTO exercise, featuring flats in desirable locations such as Bishan and Greater Southern Waterfront, may have influenced buyer behaviour.
The allocation of BTO flats to second-timer families increased by 5 percentage points in July, easing demand for larger resale flats. Consequently, demand for 4-room, 5-room, and executive flats stabilised, with changes ranging from -0.2% to 0.9% in Q3, compared to 7.4% to 16.5% in Q2.
Resale flat prices rose by 0.4% in Q3 2025, marking the slowest quarterly growth since Q2 2020. The average price of million-dollar flats decreased slightly by 0.2% to $1,138,829, with over 90% of these transactions occurring in mature estates like Toa Payoh and Bukit Merah.
Looking ahead, the HDB resale market may face further slowing in Q4 2025 due to the upcoming BTO exercise and year-end holidays. Resale flat transactions for 2025 are projected to range between 26,000 and 28,000, with prices expected to grow at a slower pace of 3% to 4%.
