The Housing and Development Board (HDB) resale market experienced a notable deceleration in the second quarter of 2025, with prices climbing by a modest 0.9% quarter-on-quarter, marking the slowest quarterly growth since Q2 2020 and the third consecutive quarter of diminishing price increases. This tepid growth follows a more robust 1.6% increase recorded in Q1 2025, contributing to a cumulative price index uptick of 2.5% for the first half of 2025, considerably lower than the 4.2% growth observed during the same period last year.
Transaction volumes showed marginal improvement with 7,102 HDB resale flats changing hands in Q2 2025, representing a 7.8% increase from the previous quarter’s 6,590 units. However, the year-on-year comparison reveals a 3.4% decline from the 7,352 transactions recorded in Q2 2024.
Alternative data sources indicate approximately 6,981 resale transactions were recorded up to June 29, 2025, confirming the general trend of a 5% annual reduction in market activity. The sustained price growth has contributed to the million-dollar segment expansion, with 415 resale flats selling for $1 million or more in Q2 2025. The HDB Resale Price Index shows a significant YOY increase of 8.0% compared to Q2 2024, despite the slowing quarterly growth rate.
PropNex has revised its full-year growth forecast to a more conservative 4% to 5% range, down from their earlier projection of 5% to 7%.
The moderating growth trend has been attributed to broader economic factors, including escalating global trade tensions, softening labour demand, and property cooling measures implemented by authorities. Despite the slowdown, larger flats and units in more affordable towns continue to attract solid interest, sustaining overall market resilience amid economic uncertainties.
Economic pressures and cooling measures slow market growth, yet larger flats in affordable areas maintain appeal despite uncertainties.
In response to market conditions, the HDB has scheduled the launch of 5,500 Build-to-Order flats in July 2025, distributed across Bukit Merah, Clementi, Tampines, and Woodlands. An additional Sale of Balance Flats exercise will introduce approximately 3,000 units, with total SBF supply for 2025 projected to exceed 8,500 units.
The HDB resale market‘s performance contrasts with private residential trends, where prices rose by 0.5% in Q2 2025 but transaction volumes experienced a much steeper decline of approximately 40% quarter-on-quarter.
Analysts caution that further market cooling appears inevitable, emphasizing the necessity for realistic seller expectations and prudent purchasing decisions as competition from upcoming BTO launches intensifies amid persistent economic headwinds.
