Hdb Resale Price Growth Slows 04 3q2025 Amid Easing Resale Transactions

HDB Resale Prices Slow Down with Only 0.4% Increase Quarter on Quarter in 3Q2025

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The prices of HDB resale flats have seen a gradual growth, with only a 0.4% quarter-on-quarter increase in the third quarter of 2025. This is a significant drop from the 0.9% growth seen in the previous quarter. It’s also the fourth consecutive quarter where the price growth has slowed down, making it the lowest recorded increase since the sluggish 0.3% rise in the second quarter of 2020.

However, Lee Sze Teck, senior director of data analytics at Huttons Asia, points out that there has been a steady rise in HDB resale prices since the second quarter of 2019, with a significant increase of 55.7%. This shows that despite the slow growth, prices have gone up by 54.4% from the period of the Covid-19 circuit breaker in the second quarter of 2020.

Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group echoes this observation, adding that the price surge could have created a wider gap between the expectations of sellers and the affordability of buyers. “With more sellers asking for record prices and buyers showing their resistance, the disparity in prices has resulted in longer negotiations and a generally more challenging resale market,” she says.

The third quarter of 2025 witnessed 15 out of 26 HDB towns recording an increase in prices. Clementi saw the highest quarter-on-quarter price spike of 7.8%, followed by Central Area with a 6.3% increase, and Geylang with a 5.0% increase. Sun further notes that most flat types saw a drop in average prices or a slower growth rate. By room type, two-room units experienced the highest growth in the third quarter of 2025, with an average price increase of 3.1% from $363,196 in the second quarter to $374,596 in the third quarter. This was followed by five-room units with a modest growth of 0.7%, and four-room flats saw an average price rise of 0.3% in the quarter.

According to Huttons’ Lee, this is the first time since the fourth quarter of 2023 that the resale prices of four- and five-room flats have seen a quarterly growth of less than 1%. Meanwhile, multi-gen and executive flats, as well as three-room units, experienced a decrease in average prices by 1.6% and 0.8% respectively, according to HDB caveats. “The slower pace of increase reflects a cooling 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 Realion’s Sun.

Resale Transactions Drop in 3Q2025

HDB resale transactions increased by 1.7% from 7,102 units in the second quarter to 7,221 units in the third quarter of 2025, according to data released by HDB. However, compared to the same period in 2024, there has been a decline of 7.3% in yearly transactions, with only 20,913 units sold.

Huttons’ Lee attributes this drop 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 3 years or less, diverting some of the demand from the HDB resale market,” he explains.

The top five most popular HDB towns among buyers in the third quarter of 2025 were Punggol, Sengkang, Tampines, Woodlands, and Yishun. These five towns accounted for around 36.2% of the total transactions in the quarter.

A Growing Million-Dollar Club

Despite the slower price growth in the third quarter of 2025, an estimated 480 flats were sold for a million dollars or more. This marks 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 office of ERA Singapore, notes that most of these million-dollar transactions were from flats in mature estates, emphasizing the strong demand for homes in central locations that offer more amenities.

According to data from Huttons’ Data Analytics, around 79 of these transactions were for flats 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 the million-dollar transactions were from mature estates, with Toa Payoh recording the highest number of million-dollar flats sold (92), followed by Bukit Merah (61), and Kallang/Whampoa (40).

However, Lim from ERA Singapore mentions that the million-dollar transactions only make up a small segment of the market, accounting for 6.6% of all resale transactions.

Market Outlook

“With the upcoming school holiday season in the fourth quarter of 2025, where many families tend to travel, we can expect a slight dip in resale activity, leading to a moderation in both transactions and prices,” predicts Lim. He also adds that the recent October BTO exercise, which offered the largest supply of flats in 2025 with 9,144 units, could draw potential buyers away from the resale market.

Huttons’ Lee agrees, saying that some buyers may choose to apply for these flats despite strict restrictions on resale. He predicts a slower pace of price growth of 3-4% and an estimated 26,000 to 28,000 resale HDB transactions by the end of 2025. He also expects at least 1,500 million-dollar transactions, which could make up more than 5% of the total market activity.

Realion’s Sun projects a 3-5% increase in prices for the year, with over 28,000 to 29,000 units sold. In comparison, ERA’s Lim forecasts a 3-6% price increase with a total of 26,000 to 27,000 transactions.