As the market continues to evolve, HDB resale flat prices saw a modest increase of 0.9% quarter-on-quarter in the second quarter of 2025, marking the lowest growth rate since early 2020. This latest growth represents the 21st consecutive quarter of rising resale flat prices, although it indicates a slowdown when compared to the previous quarterly increases of 1.6% and 2.6%.
The trend of diminishing growth has raised questions among stakeholders about the future trajectory of the market and the factors contributing to this deceleration. Since the beginning of 2025, overall resale flat prices have increased by 2.5%. Analysts project that the full-year growth for 2025 could range between 4% to 6%.
Such projections suggest that while the current quarter reflects a slowdown, the overall outlook remains positive, indicating that the market is still on an upward trend, albeit at a more tempered pace. The data indicates a cooling off after a period of more vigorous price increases, suggesting a potential recalibration of buyer expectations and market dynamics.
Diving deeper into the specifics of the price variations, different flat types have experienced diverse growth rates. Two-room flats recorded a growth of 1.4% quarter-on-quarter, while three-room flats saw a slightly higher increase of 2.1%.
These figures suggest that smaller flats continue to attract demand, possibly due to affordability considerations in a changing economic landscape. Notably, executive flats exhibited a remarkable increase of 3.8% quarter-on-quarter, with approximately one-third of these units selling for at least a million dollars.
This segment’s performance indicates a strong appetite for larger, premium units even amidst a general trend of slowing growth. The variations in growth rates among flat types also hint at shifting buyer preferences and demographics.
While two-room and three-room flats remain popular among young families and first-time buyers, the increasing sales of executive flats may reflect an emerging trend among affluent buyers seeking spacious accommodations. These dynamics underscore the complexity of the HDB resale market, where different categories of flats are driven by distinct demand factors.
Despite the slower growth rate, the sustained increase in prices over an extended period suggests a robust underlying demand for HDB resale flats. This demand may be influenced by several factors, including limited supply, government policies, and the general economic environment.
Buyers continue to view HDB flats as a viable investment, contributing to the resilience of this segment of the property market.
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News Source: Edgeprop
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