HDB resale prices up 0.9% in Q2, lowest quarter-on-quarter growth since 2020

SINGAPORE – Prices of Housing Board resale flats rose at a slower pace of 0.9 per cent in the second quarter of 2025 from the previous quarter, continuing a trend of moderating growth seen in recent quarters, early estimates from HDB showed on July 1.

The resale price index eased from the

1.6 per cent in the first three months of 2025

.

This marked the third consecutive quarter of slowdown in price growth, and is the lowest quarter-on-quarter growth since the second quarter of 2020, HDB said.

HDB resale volumes also dropped. A total of 6,981 flats were sold from April to June 29, down 5 per cent from the 7,352 transactions in the same period in 2024.

This softening in resale demand and prices comes amid broader economic uncertainties.

The Government has said that Singapore’s gross domestic product growth is expected to moderate in 2025, with global trade tensions and early signs of cooling labour demand weighing on sentiment.

“Given the highly uncertain macroeconomic outlook, households should continue to exercise prudence when purchasing properties and taking on mortgage loans,” HDB said in a statement.

Property analysts said the slower pace of growth reflects a mix of macroeconomic headwinds and the pull of new flats being launched.

“HDB resale flat prices continued to rise, but at a decidedly slower pace in the second quarter of 2025, which in our view is more sustainable and healthier for the HDB resale market,” said Ms Wong Siew Ying, head of research and content at PropNex Realty.

She revised the firm’s full-year forecast for HDB resale price growth to 4 per cent to 5 per cent, down from earlier estimates of between 5 per cent and 7 per cent.

Several analysts also pointed to Build-To-Order (BTO) and Sale of Balance Flats (SBF) launches, especially the July exercise, as drawing some demand away from the resale market.

ERA Singapore key executive officer Eugene Lim said buyers may adopt a wait-and-see approach, especially since new flats will be launched in popular areas.

“In July, new units will be launched in Bukit Merah, Clementi, Toa Payoh and, notably, Tampines (Simei), which will see its first BTO project in more than 10 years. Another SBF exercise will also take place in July alongside the BTO launch, despite one already being held in February,” said Mr Lim.

“Moreover, October’s launch is set to see the debut of Mount Pleasant’s maiden BTO project. Many buyers view Mount Pleasant as an extension of Toa Payoh, which itself is a popular location.

“This upcoming BTO project will comprise around 1,500 units, and its completion is expected to coincide with the opening of Mount Pleasant MRT station.”

About 5,500 BTO flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh and Woodlands will be released in July.

Another 3,000 flats will be offered concurrently under the SBF exercise

. Combined with the 5,590 SBF units launched in February, this brings the total SBF supply in 2025 to over 8,500 units, said HDB.

Ms Christine Sun, chief researcher and strategist of real estate company Realion Group, noted that executive flats defied the slowdown in price growth in the second quarter. Prices of such resale units jumped 3.8 per cent in the second quarter, up from 1.5 per cent in the previous three months.

In June, a five-room, 1,313 sq ft resale flat in Dawson Road in Queenstown changed hands for a record $1.659 million across all resale flats.

Data retrieved on July 1 showed 415 flats resold for at least $1 million from April to June, up 19 per cent from 348 units in the previous three months, noted PropNex’s Ms Wong.

This is a fresh quarterly high, forming about 6 per cent of overall HDB resale flat transactions in the second quarter, she added.

Despite this, analysts say the broader trend points to a stabilising market, with price growth likely to remain moderate for the rest of the year.

PropNex expects resale volume to reach about 27,000 to 28,000 flats by the year end.

With the ongoing price moderation, it could be “timely for the Government to seriously consider removing the

15-month wait-out period

this year, which will help former private home owners to right-size to an HDB resale flat”, Ms Wong said.

Currently, private home owners looking to buy a non-subsidised resale HDB flat must wait 15 months after selling their property.