Singapore’s HDB resale flat price growth continues to slow at 1.6% in Q1 2025

SINGAPORE: HDB resale flat prices in Singapore rose by 1.6% in the first quarter of 2025 (Q1 2025), slowing for the second straight quarter from the 2.6% growth in Q4 2024 and below the 1.8% quarterly increase recorded in Q4 2023, Singapore Business Review reported, citing the latest report by OrangeTee & Tie.

The report showed that while prices continued to climb for the 20th quarter in a row, the pace of growth has slowed down. Analysts pointed to a growing price resistance among buyers, especially among those mid-tier and lower-end segments.

The price growth was particularly slower for 4-room and 5-room flats, which recorded quarter-on-quarter increases of 1.9% and 2.1%, respectively, both below previous levels. Two-room flats also saw a dip, with a 1.5% rise, down from 2.3% in the previous quarter.

Meanwhile, 3-room flats saw a slight increase of 2.2%, while executive flats experienced a modest rise of 1.4%, up from 0.1% in the previous quarter.

Across the island, fewer towns posted price increases. Only 19 towns saw price growth, down from 20 previously, while the number of towns with falling prices went up to seven. The Central Area led the declines, with a sharp 18.5% drop, followed by Geylang at 7%.

In terms of transactions, 6,590 resale flats were sold in the first three months of 2025. This was a 2.6% rise from Q4 2024, but year-on-year, sales fell by 6.8%—the lowest first-quarter performance since the pandemic hit in Q1 2020.

The report attributed softer demand partly to heightened competition from newly launched Build-To-Order (BTO) and Sale of Balance Flats (SBF). Over 10,000 new flats were released under these exercises in February alone.

Still, demand for premium resale unit flats remains strong, with a record 348 million-dollar flats sold in Q1 2025, up from just 285 in Q4 2024. The most expensive flat sold was a DBSS unit in Toa Payoh Lorong 1A that went for S$1.6 million.

The number of flats sold for S$800,000 or more also increased to 1,183 units, with Tampines, Toa Payoh, Bukit Merah, Kallang/Whampoa, and Queenstown being the top areas for high-value transactions, which analysts said are likely driven by cash-rich private property owners looking to downgrade.

Looking ahead, OrangeTee forecasts resale price growth of 4% to 6% and sales volume between 25,000 and 27,000 units for the year, a decline from 2024’s total of 28,986 transactions. /TISG 

Read also: First Mount Pleasant BTO project to go on sale in October as part of 19,600 new flats

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