Hdb Resale Price Growth Slows 04 3q2025 Amid Easing Resale Transactions
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In the third quarter of 2025, prices of HDB resale flats increased by just 0.4% from the previous quarter, a slower pace compared to the 0.9% growth seen in the second quarter of 2025. This marks the fourth consecutive quarter of slowing growth and the slowest increase since the slight 0.3% rise in the second quarter of 2020. However, according to Lee Sze Teck, senior director of data analytics at Huttons Asia, HDB resale prices have still risen by 55.7% since hitting a low in the second quarter of 2019, and have increased by 54.4% since the Covid-19 circuit breaker period in the second quarter of 2020. Christine Sun, chief research and strategist at Realion (OrangeTee & ETC) Group, also points out that the significant price surge may have resulted in larger gaps between seller expectations and buyer affordability. “With more sellers asking for record prices and buyers showing resistance, the widening price disparities have led to slower negotiations and an overall more challenging resale market,” she says.
The third quarter saw 15 out of 26 HDB towns recording price gains. Clementi experienced the highest quarter-on-quarter price increase of 7.8%, followed by Central Area with a 6.3% increase and Geylang with a 5.0% increase. Sun notes that most types of flats saw decreases in average prices or slower growth. Two-room units saw the highest growth in the third quarter of 2025, with average prices rising by 3.1% from $363,196 in the second quarter to $374,596 in the third quarter. Five-room units also saw a modest growth of 0.7%, followed by four-room flats with an average price increase of 0.3% during the quarter. According to Lee from Huttons, this is the first time since the fourth quarter of 2023 that resale prices of four- and five-room flats have increased by less than 1% in a quarter. Meanwhile, multi-gen and executive flats and three-room units saw average prices decrease by 1.6% and 0.8%, respectively, according to HDB caveats. “The slower pace of increase reflects a cooling in demand for resale flats, as buyers turn to new built-to-order (BTO) and sale-of-balance flats (SBF) launches, with around 30,000 new units offered this year,” observes Sun from Realion.
Resale transactions dip in the third quarter of 2025, with a slight increase of 1.7% from 7,102 units in the second quarter to 7,221 units. On a yearly basis, 20,913 units were transacted, a decline of 7.3% from the 22,562 units sold in the corresponding period in 2024. According to Lee from Huttons, the lower year-on-year volume is due to the launch of over 10,000 flats in the July 2025 BTO and SBF exercise. “More than 3,900 flats were either completed or had a shorter waiting time of three years or less, drawing demand away from the HDB resale market,” he says. The top five most popular HDB towns among buyers in the third quarter of 2025 were Punggol, Sengkang, Tampinese, Woodlands, and Yishun, making up around 36.2% of total transactions during the quarter.
The growing million-dollar club saw an estimated 480 flats sold for prices exceeding one million dollars in the third quarter of 2025, a 15.9% increase from the previous quarter and the highest number of million-dollar transactions ever recorded in a single quarter. Eugene Lim, key executive officer of ERA Singapore, notes that most of these transactions were in mature estates, highlighting the strong demand for homes in central locations with extensive amenities. According to data from HDB and Huttons Data Analytics, 79 of these transactions were units that had just reached their five-year Mandatory Occupation Period (MOP), a 25.4% increase from the previous quarter. In the third quarter of 2025, 90% of million-dollar transactions were in mature estates, with Toa Payoh recording the highest number of million-dollar flats sold at 92, followed by Bukit Merah with 61, and Kallang/Whampoa in third place with 40 transactions. However, although the growing number of million-dollar transactions has caught attention, it still makes up a small segment of the market, accounting for only 6.6% of resale transactions, according to Lim from ERA Singapore.
Looking ahead, Lim believes that with the upcoming school holiday season in the fourth quarter of 2025, which typically sees a decrease in resale activity, HDB transactions and prices are expected to moderate slightly. He adds that the recent conclusion of the October 2025 BTO exercise, which offered the largest supply of such flats this year at 9,144 BTO units, could draw prospective buyers away from the resale market. Similarly, Lee from Huttons expects HDB resale prices to rise at a slower pace of 3-4%, with 26,000 to 28,000 resale HDB flat transactions by the end of 2025. He also estimates at least 1,500 million-dollar transactions, which could make up more than 5% of total market activity. Sun from Realion projects an increase in prices of 3-5% with over 28,000 to 29,000 transactions, while Lim from ERA forecasts a 3-6% increase in prices across 26,000 to 27,000 transactions.