Singapore’s Property Market Navigates Shifting Sands: HDB Resale Prices Rise as Private Home Sales Cool
Singapore’s real estate market continues to be a dynamic landscape, presenting both opportunities and challenges for Singaporean homeowners and investors. Recent data indicates a divergence in trends between the public and private housing sectors, with resale prices for Housing and Development Board (HDB) flats on the rise while new private home sales are expected to moderate [2, 13]. This evolving scenario warrants a closer examination of the factors shaping Singapore’s property market and their implications for Singaporeans.
HDB Resale Market: Continued Growth Amidst Affordability Concerns
The resale market for HDB flats has demonstrated remarkable resilience, with the Resale Price Index increasing by 1.57% quarter-on-quarter and 9.42% year-on-year in the first quarter of 2025 [2]. This sustained growth is narrowing the price gap between public and private housing, making HDB flats an increasingly attractive option for Singaporeans [2]. As of 2024, HDB units housed 77.4% of the country’s resident households, underscoring the vital role of public housing in Singapore [2].
However, the rising resale prices also raise concerns about affordability, especially for first-time homebuyers. While the government provides enhanced housing grants to eligible buyers, the increasing costs may still pose a barrier to homeownership for some Singaporeans [7].
Private Residential Market: Sales Dip Expected After August Surge
In contrast to the robust HDB resale market, the private residential sector is anticipating a slowdown in sales following a surge in August 2025 [13]. New private home sales in Singapore hit their highest level in nine months in August, with developers selling 2,142 units (ex. EC) [13]. New launches in August powered developers’ sales to the highest monthly sales since November 2024 [13]. However, this momentum is expected to moderate in September due to the Lunar seventh month (ghost month), a period when some buyers may refrain from making property purchases and developers tend to hold back launches [13].
Despite the anticipated slowdown, the underlying fundamentals of the Singapore private property market remain solid. Property prices in Singapore have been on a steady long-term uptrend, supported by strong local demand, limited land supply, and government policies that prevent excessive speculation [4]. Over the past five years, private residential prices have increased by 32%, with 2024 alone recording a 3.9% growth [4].
Factors Influencing Market Sentiment
Several factors are influencing the sentiment of buyers and investors in Singapore’s property market. Falling mortgage rates are expected to improve affordability, attracting more first-time buyers and upgraders [4]. Market confidence rebounded in Q3 2024, reflecting increased optimism among developers and buyers, according to the NUS Singapore Residential Price Expectations Index (NUS SRPI) [4].
However, limited private housing supply remains a concern. The number of new private residential units completed each year between 2025 and 2027 will remain significantly below the 10-year average [4]. This limited supply is expected to keep competition for available units tight, particularly in the Outside Central Region (OCR) and Rest of Central Region (RCR) segments, where most HDB upgraders seek to buy [4].
Singapore Real Estate Investment: A Long-Term Perspective
Despite short-term fluctuations, Singapore’s property market is generally regarded as a resilient and stable investment, attracting both local buyers and global investors [4]. The Singapore real estate market size was valued at USD 59.08 billion in 2024 and is expected to grow at a CAGR of 6.5% from 2025 to 2030 [3]. While property prices have risen steadily over the past five years, the market has proven its strength as a long-term wealth-building asset [4].
For Singaporeans considering real estate investment, it is essential to adopt a long-term perspective and carefully assess their financial situation and risk tolerance. Factors such as interest rates, government policies, and economic conditions should be closely monitored to make informed decisions.
Opportunities in a Changing Landscape
The evolving dynamics of Singapore’s property market present various opportunities for Singaporeans. The rising HDB resale prices offer potential gains for existing homeowners, while the anticipated slowdown in private home sales may provide opportunities for buyers to negotiate better deals [2, 13]. The co-living sector in Singapore has attracted $200m of transactions in August, which demonstrates a growing trend since the sector has recorded over $1.4b of transactions between 2022 and August 2025 [9].
Singaporeans seeking to invest in real estate should carefully research different property types and locations to identify opportunities that align with their investment goals. They should also consider seeking advice from experienced real estate professionals to navigate the complexities of the market.
Conclusion
Singapore’s property market is undergoing a period of transition, with diverging trends in the public and private housing sectors. While HDB resale prices continue to rise, new private home sales are expected to moderate in the near term. These shifts present both opportunities and challenges for Singaporean homeowners and investors. By carefully monitoring market trends, assessing their financial situation, and seeking professional advice, Singaporeans can make informed decisions and navigate the evolving landscape of Singapore real estate.
