HDB resale prices rise 1% in January, indicating growing buyer caution

SINGAPORE: The Housing Development Board (HDB) resale market saw a 1% increase in prices in January, marking a slight acceleration from December’s 0.2% growth.

This trend suggests a shift in bargaining power towards buyers and a more cautious approach to spending, following a period of record-high price increases in many areas, 99.co’s Chief Data & Analytics Officer Luqman Hakim told Singapore Business Review (SBR).

Resale prices in both Mature and Non-Mature Estates experienced upward movement in January. Prices in Mature Estates rose by 0.7%, while Non-Mature Estates saw a 1% increase. Across different flat types, prices recorded the following growth rates: 3-room flats increased by 1.1%, 4-room flats by 1.3%, 5-room flats by 1.1%, and Executive flats by 0.5%.

On a year-on-year (YoY) basis, the overall HDB resale price index showed a 9.3% increase compared to January 2024. Among different flat types, 3-room and 4-room flats led the price growth, with 10.1% and 10.4% increases, respectively. 5-room and Executive flats followed with 7.7% and 5.2% growth, respectively. For estates, Mature and Non-Mature Estates recorded YoY price increases of 8.9% and 9.3%, respectively.

A total of 2,329 HDB resale flats were transacted in January 2025, reflecting a 9.4% increase from December 2024. However, YoY resale volumes in January were 11.4% lower compared to the same period last year, indicating a slowdown in transactions.

Breaking it down by flat type, 3-room flats made up 25.5% of transactions, 4-room flats accounted for 45.5%, 5-room flats represented 23.4%, and Executive flats comprised 5.6%. By estate classification, Non-Mature Estates accounted for 59.8% of all resale transactions, while Mature Estates made up 40.2%. The highest resale transaction for the month was a 5-room flat at Lor 1A Toa Payoh, which sold for $1.6 million.

Looking ahead, Mr Hakim told SBR that he projects a 4% to 6% increase in HDB resale prices for 2025, a more moderate growth pace compared to the 9% rise recorded in 2024.

“Million-dollar flat transactions are expected to remain strong, with the potential to surpass 1,000 units again this year. This is especially true for larger homes such as lofts and maisonettes, as buyers continue to prioritise spacious living,” he said.

He added that in January alone, million-dollar transactions accounted for 5.1% of total resale volume, with the number of such sales just one transaction shy of the all-time high (ATH).

The upcoming launch of more Build-To-Order (BTO) flats in 2025 is expected to help ease pressure on the resale market, potentially moderating price increases. However, global economic uncertainties—including the recent US tariffs—may pose risks to market stability.