Singapore Real Estate Investment: HDB Resale Price Surge and What It Means for Singaporeans
Singapore’s Housing and Development Board (HDB) resale market is experiencing notable trends that have significant implications for Singaporeans, especially those looking to invest in property or secure their first homes. The latest data reveals a continuous rise in resale prices, albeit at a moderated pace, along with a surge in million-dollar flat transactions [6, 16]. This article provides a data-backed summary of these developments and what they mean for Singaporeans navigating the real estate landscape.
HDB Resale Price Trends: A 21-Quarter Growth Streak
HDB resale prices have been on an upward trajectory, marking 21 consecutive quarters of growth as of Q2 2025 [6]. This is the longest streak on record, with resale prices climbing 54.3% since Q1 2020 [6]. In Q2 2025, resale prices rose 0.9% quarter-on-quarter (QoQ) and 8% year-on-year (YoY) [6]. While the growth continues, the pace has slowed compared to previous quarters, indicating a more sustainable and healthier market [18]. Analysts predict HDB resale prices to increase by 4% to 5.5% for the entire year of 2025 [6, 18].
This sustained increase is supported by Singapore’s stable economic fundamentals and declining interest rates [6]. However, increased flat supply in the medium to long term may temper significant price spikes [6].
Million-Dollar Flat Transactions: A Record Surge
The demand for higher-priced units has surged, with a record number of HDB flats being sold for at least S$1 million [6]. In Q2 2025, 415 flats were sold for S$1 million or more, a 75.8% increase compared to the same period in 2024 [6, 16]. These million-dollar flat sales comprised 168 units of 4-room flats, 129 units of 5-room flats, 116 units of executive flats, and two multi-generation flats [18]. The priciest flat sold in Q2 2025 was a Dawson Road loft for S$1.658 million [6]. This trend underscores the increasing value of public housing as an asset in Singapore [4].
Transaction Volumes and Supply
Resale transaction volume rebounded 7.8% from the previous quarter to 7,102 units in Q2 2025 [6]. However, this volume is still 3.4% lower YoY [6]. The HDB is on track to launch around 30,000 new flats in 2025, including a record 10,252 Sale of Balance Flats (SBF) units [6]. In July 2025, 5,547 flats were launched across seven towns [6].
Impact on Singaporeans
The HDB resale market trends have varying impacts on Singaporeans:
- First-Time Homebuyers: Rising resale prices may pose affordability challenges for first-time homebuyers [12]. However, the government’s efforts to increase the supply of new Build-to-Order (BTO) flats and SBF units provide more options [6, 21].
- Existing Homeowners: The increase in resale prices benefits existing homeowners looking to upgrade to private properties or move to different locations [4]. However, they may face higher prices when purchasing their next home.
- Property Investors: The HDB resale market offers investment opportunities, particularly in well-located flats [4]. However, investors should be aware of government cooling measures and potential policy changes [3, 13].
Government Measures and Market Outlook
The Singapore government actively manages the property market through various cooling measures to ensure sustainable price growth and affordability [4]. These measures include [2, 3]:
- Additional Buyer’s Stamp Duty (ABSD) adjustments
- Loan-to-Value (LTV) limits
- Total Debt Servicing Ratio (TDSR) requirements
- Seller’s Stamp Duty (SSD) revisions
The latest measure was implemented in July 2025, extending the holding period for private residential properties from three to four years and increasing SSD rates by 4 percentage points across all tiers [14]. These changes aim to curb speculative sub-sale transactions [14].
Looking ahead, analysts expect the HDB resale market to remain resilient, supported by strong demand, limited supply, and a stable economic environment [4, 7]. HDB resale prices are projected to rise by 4% to 5.5% in 2025 [6, 18].
Expert Perspectives
OrangeTee Group analysts expect public home resale prices to rise modestly for the remainder of the year, driven by stable economic fundamentals and declining interest rates, forecasting an annual rise of 4% to 5.5% [16].
Conclusion
The Singapore HDB resale market presents both opportunities and challenges for Singaporeans. While resale prices continue to rise, the government’s efforts to increase flat supply and implement cooling measures aim to ensure a stable and sustainable market. Singaporeans should exercise prudence when making property decisions, considering their financial situation and long-term goals [23]. Monitoring market trends and government policies is crucial for making informed investment decisions in Singapore’s dynamic real estate landscape [4].
