The Housing Development Board (HDB) has reported a 0.9% increase in resale prices for the second quarter of 2025, a deceleration from the 1.6% rise in the first quarter. This marks the third consecutive slowdown in price growth, with the latest figures also trailing behind the 2.3% increase recorded in Q2 2024.
According to Christine Sun, Chief Researcher and Strategist at Realion Group, the slower price growth is evident across most flat types. For instance, 4-room flats saw a 1.3% quarter-on-quarter increase, down from 2% in Q1 2025. Similarly, 5-room flats grew by 1.2%, and 3-room flats by 2.1%, both showing a decline from the previous quarter’s growth rates.
Conversely, executive flats experienced a significant price jump of 3.8% in Q2, up from 1.5% in Q1. Notably, 116 out of 414 executive flats were sold for at least a million dollars, indicating a robust demand in this segment. The number of executive flat transactions rose to 414 units in Q2 2025, compared to 362 in Q1 2025.
The increase in Build-To-Order (BTO) supply is believed to have contributed to the slower price growth in the secondary market, offering buyers more options. HDB plans to launch 5,500 BTO flats in July, with high interest expected in areas such as Clementi, Toa Payoh, Tampines, and Bukit Merah.
Looking ahead, HDB resale prices are anticipated to continue rising modestly, supported by stable economic fundamentals and declining interest rates. However, significant price spikes may be tempered as the overall flat supply increases, providing buyers with a wider array of housing choices. Areas like Bishan, Dover, Sengkang, Woodlands, and Yio Chu Kang may see increased interest due to new developments and amenities.
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