Hdb Resale Price Growth Slows 04 3q2025 Amid Easing Resale Transactions
In the third quarter of 2025, HDB resale prices experienced a marginal increase of 0.4% from the previous quarter, in contrast to the 0.9% growth seen in the second quarter. This marks the fourth consecutive quarter of slowing growth, with the last time such a slow increase was seen back in the second quarter of 2020.
Senior director of data analytics at Huttons Asia, Lee Sze Teck, points out that despite the slower growth, HDB resale prices have still increased by 55.7% since bottoming out in the second quarter of 2019. This is also a substantial increase of 54.4% from the period of the Covid-19 circuit breaker in the second quarter of 2020.
Chief researcher and strategist at Realion (OrangeTee & ETC) Group, Christine Sun, shares the same sentiment and adds that the surge in prices could have created a larger gap between the expectations of sellers and the affordability of buyers. She notes, “With sellers asking for record prices and buyers showing resistance, the rising price discrepancies have resulted in slower negotiations and a more challenging resale market.”
Out of the 26 HDB towns, 15 saw a growth in prices in the third quarter. The town of Clementi saw the highest quarterly price increase of 7.8%, followed by the Central Area with a 6.3% increase and Geylang with a 5.0% increase.
Sun also points out that most flat types showed a decrease in average prices or a slower growth. By room type, two-room units saw the highest growth 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 modest growth of 0.7% for five-room units and a 0.3% increase for four-room flats in the same quarter.
Lee notes that this is the first time since the fourth quarter of 2023 that four- and five-room flats have shown a quarterly growth of less than 1%. Meanwhile, multi-gen and executive flats, as well as three-room units, saw a decrease in average prices of 1.6% and 0.8% respectively, according to HDB caveats.
Sun observes that the slower pace of increase is due to a cooling demand for resale flats, as buyers turn to new built-to-order (BTO) and sale-of-balance (SBF) flats, with approximately 30,000 new units being offered this year.
Resale transactions decreased in the third quarter of 2025, rising by only 1.7% from 7,102 units in the second quarter to 7,221 units in the third quarter, according to data released by HDB. On a yearly basis, 20,913 units were sold, a decline of 7.3% from the 22,562 units sold in the same period in 2024.
Lee attributes the lower yearly volume 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, taking away some 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, making up approximately 36.2% of total transactions in the quarter.
Despite the slowing price growth in the third quarter, an estimated 480 flats were sold for seven-figure sums, an increase of 15.9% from the previous quarter and marking the highest number of million-dollar transactions ever recorded in a single quarter.
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Eugene Lim, key executive officer of ERA Singapore, notes that majority of these million-dollar transactions were flats in mature estates, highlighting the strong demand for homes in centrally located towns with extensive amenities. Out of the million-dollar flats, around 79 were recently eligible for sale after reaching their five-year Mandatory Occupation Period (MOP), an increase of 25.4% from the previous quarter.
In the third quarter of 2025, 90% of the million-dollar transactions were in mature estates, with Toa Payoh recording the highest number of such transactions at 92. This was followed by Bukit Merah with 61 flats and Kallang/Whampoa with 40 flats.
However, Lim notes that while million-dollar transactions make up a small segment of the market, accounting for only 6.6% of all resale transactions, the number is still significant.
Looking ahead, Lim predicts that with the upcoming school holiday season and the recent conclusion of the October BTO exercise, which offered the largest supply of new flats this year, resale activity and prices are expected to moderate slightly. He also anticipates at least 1,500 million-dollar transactions, making up more than 5% of total market activity.
Realion’s Sun forecasts a price increase of 3-5% over the next year, with 28,000 to 29,000 units sold, while ERA’s Lim predicts a 3-6% price increase across 26,000 to 27,000 transactions. Huttons’ Lee projects a slower price increase of 3-4%, estimating around 26,000 to 28,000 resale HDB flat transactions by the end of 2025.