HDB resale price growth slows to 1.6% as buyer caution rises: report

Resale prices rose by 1.6%, marking the second consecutive quarter of deceleration following 2.6% growth in Q4 2024.

Singapore’s HDB resale market continued its upward trajectory in the first quarter of 2025, but at a noticeably slower pace, signaling growing price resistance among buyers.

According to the latest report by OrangeTee & Tie, resale prices rose by 1.6%, marking the second consecutive quarter of deceleration following 2.6% growth in Q4 2024.

This is the slowest quarterly increase since Q4 2023 and falls short of the 1.8% rise recorded in the same period last year. Whilst the market remains resilient — with prices rising for the 20th straight quarter — signs of caution are emerging, particularly among buyers in the mid-tier and lower-end segments.

The price slowdown was most evident among 4-room and 5-room flats, which saw QoQ growth of 1.9% and 2.1% respectively, both below previous levels. 2-room flats also experienced weaker growth at 1.5%, down from 2.3%.

In contrast, 3-room flats saw an uptick to 2.2%, whilst executive flats registered modest improvement at 1.4%, up from just 0.1%.

At the town level, fewer areas experienced price growth — 19 towns compared to 20 in the previous quarter. Meanwhile, the number of towns posting price declines increased to seven. The Central Area led the downturn with an 18.5% drop, followed by Geylang at 7%.

A total of 6,590 resale flats changed hands in Q1 2025, a 2.6% increase from Q4 2024. However, this figure represents a 6.8% YoY decline, making it the lowest Q1 transaction volume since the pandemic-hit first quarter of 2020.

The softer demand is partly attributed to intense competition from new public housing launches. In February 2025 alone, more than 10,000 new flats were released under HDB’s BTO and SBF exercises.

Despite the overall cooling, demand for premium flats remained robust. A record 348 million-dollar flats were sold in Q1 — up from 285 in the previous quarter. The most expensive transaction reached $1.6m for a DBSS flat in Toa Payoh Lorong 1A.

The number of flats sold at or above $800,000 also rose to 1,183 units, with Tampines, Toa Payoh, Bukit Merah, Kallang/Whampoa, and Queenstown among the top-performing areas for big-ticket deals. Analysts noted that many of these transactions were likely driven by cash-rich private home downgraders.

Looking ahead, OrangeTee projects resale price growth of 4% to 6% and sales volume of 25,000 to 27,000 units for the full year — a dip from 2024’s 28,986 transactions.