As Singapore's HDB resale market moves into 2025, prices are expected to maintain an upward trajectory, with an estimated 4% to 6% growth projected by OrangeTee. The key driver? A tightening supply of flats reaching their Minimum Occupation Period (MOP).
📉 Shrinking Supply, Rising Prices
The number of MOP flats is set to decline for the third consecutive year, dropping from 30,920 units in 2022 to just 6,974 in 2025—the lowest in 11 years. With fewer flats entering the resale market, competition among buyers is likely to intensify, supporting price appreciation.
📈 Longest Price Growth Streak in History
According to OrangeTee, if no major economic shocks or cooling measures occur, HDB resale prices will have grown for 23 consecutive quarters by the end of 2025. While this sounds dramatic, the overall increase of 58% over this period is still less aggressive than past property booms, such as in the 1990s.
🏡 Government Measures to Balance Demand
Despite rising prices, a big price surge is unlikely as the government plans to launch over 50,000 new BTO flats between 2025 and 2027. Additionally, efforts to reduce BTO waiting times to under three years could shift some buyers towards new flats instead of resale.
Market Trends to Watch
- Resale Transactions: 2024 saw 28,986 flats transacted, slightly lower than previous years but higher than 2023’s 26,735 units.
- Bigger Flats in Demand: While sales of five-room and executive flats dipped 22.2% quarter-on-quarter, annual demand remains strong—8,468 units sold in 2024, up 11.5% from 2023.
- Buyer Sentiment: End-of-year sales traditionally slow down due to school holidays and travel, but demand for larger flats remains resilient, driven by upgraders and private property downgraders.
✅ Summary Highlights:
✔ HDB resale prices expected to rise 4% to 6% in 2025 📈
✔ Lowest number of MOP flats in 11 years, tightening supply 🔥
✔ Government to launch 50,000+ BTO flats between 2025-2027, moderating demand 🏗️
✔ Larger flats remain in demand, despite short-term transaction dips 🏡
The HDB resale market remains dynamic and competitive. Whether you're buying, selling, or just exploring options, it's essential to stay informed.
📩 Reach out today to get the latest updates and insights on the market!