HDB resale prices dip for second straight quarter, private home prices rise at slower pace

SINGAPORE – Prices of Housing Board resale flats have declined for the second consecutive quarter, with fewer flats sold compared with the same period in 2025.

Early estimates released on July 1 showed that HDB resale prices fell by 0.3 per cent. In contrast, the first three months of the year saw a 0.1 per cent decline, the first such dip in close to seven years.

There were 6,268 transactions in the second quarter of this year, down 10.2 per cent from 6,981 units in the same period in 2025.

But prices in the private home market rose 0.5 per cent in the second quarter, down from the 0.9 per cent growth in the previous quarter.

Across all areas in Singapore, prices of non-landed properties dipped 0.1 per cent in the second quarter, compared with the 1.3 per cent rise in the previous quarter.

But price movements were mixed across regions, with those in the core central region rising by 2 per cent, a quicker pace compared with the 0.6 per cent increase in the previous quarter.

Prices in the city fringe were down by 1.4 per cent, and those in the suburbs decreased by 0.2 per cent.

Transaction volume was on a par with the previous quarter’s at 5,420 units.

Buyers diverted to BTO flats

Property analysts attributed the decline in HDB resale prices to macroeconomic uncertainties and a strong pipeline of Build-To-Order (BTO) flats.

Christine Sun, chief researcher and strategist at property firm Realion (OrangeTee & ETC) Group, said buyers could have pivoted away from pricey HDB resale flats in attractive locations to more affordable BTO flats or older resale units.

She added that the softer job market and structural layoffs could have led to greater prudence, “as any changes can impact buyers’ financial confidence and borrowing capacity”.

Mohan Sandrasegeran, head of research and data analytics at real estate agency Singapore Realtors, said more flats with shorter waiting times – meaning less than three years – could also have helped redistribute demand to the BTO market.

“Buyers who may have previously turned to the resale market due to time constraints now have viable alternatives,” he said.

In the recent BTO sales exercise in June, 2,520 BTO flats with wait times of around three years were offered in Sembawang and Ang Mo Kio.

Sandrasegeran noted that the June exercise recorded a median first-timer family application rate of 1.4 for three-room and larger flats – a slight increase from 0.9 during the sales launch in February.

Despite resale prices decreasing, the number of million-dollar flat transactions rose to 491 in the second quarter of 2026, up from 411 in the previous quarter.

Lee Sze Teck, senior director of data analytics at real estate agency Huttons Asia, said the increase in such transactions was led by five-room flats in projects such as Bedok South Horizon and Hougang RiverCourt that have reached their minimum occupation period.

Bedok South Horizon will be linked to the upcoming integrated transport hub at Bedok South MRT station, while Hougang RiverCourt has units with waterway views and is near the upcoming Defu MRT station on the Cross Island Line, he noted.

Most million-dollar transactions were in Toa Payoh, Queenstown and Bukit Merah, he added.

On the private housing market, Leonard Tay, research head of real estate consultancy Knight Frank Singapore, said recent launches in the city fringe and suburbs were “priced sensitively with buyers in mind”, leading to the slight easing of prices in non-landed private homes.

“This is characteristic of the transition from the rapid post-pandemic expansion towards a more sustainable and balanced phase of growth from 2024,” he said.

Eugene Lim, key executive officer of property agency ERA Singapore, said Hudson Place Residences in one-north launched in May with a median per square foot (psf) price of $2,465 – 6.5 per cent lower than the median of $2,643 psf in the city fringe over the past six months.

“This highlights the underlying demand for affordably priced homes in the city fringe, particularly among young families that hold jobs in one of one-north’s emerging industries,” he added.

The Urban Redevelopment Authority (URA) said 4,745 private homes will be launched under the Government Land Sales programme in the second half of 2026.

This will bring the confirmed supply for the whole year to 9,320 units, over 50 per cent higher than the average number of units launched each year over the past 10 years.

In total, around 61,000 private homes, including executive condominiums, are expected to be completed in the next few years, it added.

HDB and URA said the macroeconomic outlook remains highly uncertain, and advised households to exercise prudence when purchasing property and taking out mortgage loans.

“The Government will continue to monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market,” HDB added.

In October, HDB will roll out about 7,960 flats in Bedok, Geylang, Sembawang, Tengah, Toa Payoh and Yishun.

Assisted living flats, also known as community care apartments, will also be offered in Toa Payoh. These flats come with senior-friendly fittings, such as wheelchair-accessible bathrooms and other health and community services.

The board advised buyers who are keen to participate in the October exercise to apply for an HDB Flat Eligibility Letter by Sept 5.