Where Are HDB Resale Prices Headed in 2025? Here’s the Forecast

After several years of aggressive price growth, the HDB resale market in 2025 is showing clear signs of moderation. But does this mean prices are finally going to dip—or are we simply entering a more stable, sustainable phase? With the Singapore housing market shaped by policy shifts, changing buyer behaviour, and uneven supply, it’s not a simple yes or no.

Where Are HDB Resale Prices Headed in 2025? Here’s the Forecast

This blog breaks down what’s really happening with Singapore HDB resale prices—and why 2025 might mark a turning point for both affordability and strategy in the public housing space.

Price Growth Is Slowing—But Not Reversing

The data is in: resale prices are still rising, but the pace has clearly eased. After a peak period in 2024 where HDB property prices surged by nearly 10%, 2025 has opened on a calmer note. The HDB resale market price saw only a modest increase of 1.6% in Q1 2025—down from 2.6% in the final quarter of last year.

Why is this significant? Because it suggests the market is not crashing, but cooling. For buyers, this could be the breathing space they’ve been waiting for. For sellers, it signals the end of runaway appreciation. Either way, the market is finding its footing again.

The Cooling Drivers Behind 2025's Slower Market

Several forces are working in tandem to temper the heat:

• More BTO flats are entering the pipeline, giving buyers additional options outside the resale market.

• Economic caution—with Singapore’s GDP growth forecast lowered to 0–2%—is encouraging more conservative home buying behaviour.

• The HDB loan interest rate, although stable at 2.6%, still feels high relative to pre-pandemic norms, nudging some buyers to wait or reduce borrowing.

Together, these elements are reshaping the HDB resale market in 2025—away from bidding wars and towards more considered decision-making.

Resale Demand Is Still Strong—But More Selective

Just because price momentum is slowing doesn’t mean demand has dried up. In fact, activity remains high, especially among these buyer segments:

1. First-Time Buyers

With rising rents and limited patience for BTO waiting periods, many young families and newlyweds continue to pursue HDB resale flats in Singapore. Government grants—such as the Enhanced CPF Housing Grant and Proximity Housing Grant—have helped reduce upfront costs, even as the HDB resale market price remains elevated.

2. Right-Sizers from Private Property

Private homeowners, especially older ones, are increasingly shifting to resale flats. Downsizing helps them unlock equity, avoid Additional Buyer’s Stamp Duty (ABSD), and settle into mature HDB estates with strong connectivity.

3. Upgraders Within the HDB Market

Instead of moving to private condos, some flat owners are choosing to upgrade to larger HDB units. Why? A 5-room resale flat in Bishan may cost $1M—but that’s still less than half the price of a city-fringe condo. Buyers prioritising space and convenience are helping keep premium HDB units in high demand.

The Supply Crunch Is Real—and Driving Prices Up

One of the most critical but overlooked factors in the HDB resale market 2025 is supply—or the lack of it. The number of flats reaching their Minimum Occupation Period (MOP) this year is just 8,000, the lowest in more than a decade.

This has two major effects:

• Tighter inventory: Buyers have fewer choices, especially in popular towns.

• Higher premiums: Recently MOP-ed flats are commanding top dollar due to their newer condition and longer remaining lease.

While prices aren’t climbing as sharply as before, they’re still being propped up by this shortage. According to property market news, we may not see significant supply relief until at least 2026, when more flats are projected to reach MOP.

BTO Competition Is Re balancing the Market

One of the main reasons for softening resale prices is the renewed competitiveness of the BTO segment. Thanks to policy improvements, some BTO flats now have waiting times as short as 2.5 years—making them a more attractive option for those who can afford to wait.

As more buyers shift back to BTOs, especially in non-mature estates, resale sellers in those areas are feeling the pinch. This dynamic could help moderate the HDB resale market price in areas with high BTO launch activity.

Interest Rates and Loan Affordability: A Mixed Bag

The HDB loan interest rate has held steady at 2.6% for years, but with floating-rate mortgages showing greater volatility, buyers remain cautious. Lending regulations are also tighter:

• Loan-to-Value (LTV) ratios for HDB loans are capped at 80%.

• The Mortgage Servicing Ratio (MSR) limits monthly payments to 30% of income.

These rules are designed to protect buyers, but they also restrict what many can afford—especially in the context of million-dollar resale flats. While buyers aren’t priced out completely, they’re now more mindful of long-term repayment obligations.

The Rental Undercurrent: A Short-Term Spike

Interestingly, the rental market for HDB resale flats in Singapore is booming. Delays in BTO construction, along with rising demand from expatriates and new citizens, have pushed up approvals and occupancy in the resale rental segment.

However, this trend is likely short-lived. As BTO completions ramp up in 2026 and beyond, demand for temporary rentals is expected to ease—bringing rental rates back down to earth.

What’s Next for HDB Resale Prices?

The outlook for Singapore HDB resale price in 2025 is cautiously stable. Here’s the consensus among analysts:

• Prices will continue to rise—but at a slower, healthier pace.

• Buyer demand will remain strong, but more selective.

• Supply pressures will keep prices elevated in key towns until more flats reach MOP in 2026–2027.

In short, this isn’t a buyer’s market or a seller’s market—it’s a rebalancing one. Buyers will need to be strategic, while sellers should temper expectations.

For most buyers, the question isn’t whether to buy—it’s when and where. If you’re planning to live in the flat long-term, today’s prices—though high—may still offer good value, especially when compared to private alternatives.

As always, the key is to align your purchase with your life stage, financial capacity, and risk appetite. Whether you’re entering the market for the first time or considering a strategic upgrade, understanding the current trends in the HDB resale market 2025 will help you make smarter, more confident decisions.