Singapore Real Estate: Cooling Measures Moderate Market as HDB Resale Growth Slows
Singapore’s property market is navigating a period of moderation in 2025, influenced by cooling measures, increased housing supply, and global economic uncertainties. While overall prices continue to rise, the pace of growth has slowed, particularly in the HDB resale market, impacting Singaporeans across different housing segments.
HDB Resale Market: Slowing Price Growth
The Housing Board (HDB) resale market, a key indicator of public housing affordability, has experienced a notable slowdown in price growth. In the first quarter of 2025, HDB resale prices grew by 1.6% quarter-on-quarter (QOQ), a significant decrease from the 2.6% increase in the fourth quarter of 2024. This marks the slowest quarterly increase in five quarters, signaling a moderation in the previously rapid price appreciation.
- Q1 2025 Growth: 1.6% QOQ
- Q4 2024 Growth: 2.6% QOQ
- Average Quarterly Growth in 2024: 2.3%
Despite the slower price growth, resale transactions saw a slight increase, rising by 2.6% from 6,424 cases in Q4 2024 to 6,590 cases in Q1 2025. However, compared to the first quarter of 2024, resale transactions were 6.8% lower, indicating a cooling in overall market activity.
Several factors contribute to this moderation: Increased housing supply, with the government on track to deliver 100,000 Build-To-Order (BTO) flats by 2025, provides more options for prospective buyers. Macroeconomic uncertainty, including slower global and regional trade and heightened economic policy uncertainty, has also led to more cautious buyer sentiment.
Impact on Singaporeans: Affordability and Options
The slowing price growth in the HDB resale market has several implications for Singaporeans:
- First-time buyers: Benefit from more stable prices and a wider range of options, particularly with the launch of new BTO flats.
- HDB upgraders: May find it more challenging to sell their existing flats at premium prices, impacting their ability to upgrade to private properties.
- Private homeowners: The 15-month wait-out period for private property owners purchasing non-subsidized HDB resale flats continues to impact demand in this segment, reducing the proportion of million-dollar flat buyers from 34% to 12%. This measure is expected to remain until the market stabilizes.
Private Residential Market: Moderate Price Increases
The private residential market also experienced a moderation in price increases. The Urban Redevelopment Authority’s (URA) overall private home price index grew at a slower pace of 0.8% in Q1 2025, compared to a 2.3% gain in the previous quarter. This slower growth was primarily driven by smaller price gains for non-landed properties across all market segments.
- Overall Private Home Price Index Growth (Q1 2025): 0.8%
- Previous Quarter Growth: 2.3%
New home sales in the prime Core Central Region (CCR) rose to 192 units in Q1 2025, marking the strongest showing since Q4 2023. This increase suggests a resurgence in luxury real estate, driven by local buyers taking advantage of narrower price gaps between CCR and Rest of Central Region (RCR) properties.
Rental Market: Signs of Stabilization
Singapore’s rental market is showing mixed signals, with some sources indicating a decline in rents while others report slight increases. Private residential rents experienced a decline in 2024, with a 1.9% decrease in Q1 2024 and a 2.1% drop in the previous quarter. This was attributed to an increased supply of completed private homes, leading to higher vacancy rates, particularly in the Core Central Region (CCR).
However, recent data indicates a potential stabilization. The private rental index rose slightly by 0.4% in Q1 2025, reflecting a modest uptick amid economic uncertainty. Savills forecasts flat rents in 2025 due to reduced new completions and higher property taxes, which deter landlords from lowering rents.
Government Measures and Future Outlook
The Singapore government remains committed to maintaining a stable and sustainable property market. Minister for National Development Desmond Lee has emphasized the importance of letting current cooling measures take effect before making further adjustments. The government is also ramping up housing supply to ease market pressures, with a commitment to deliver 100,000 BTO flats by 2025.
Looking ahead, the Singapore property market is expected to navigate a period of moderate growth. While uncertainties remain in the global economic landscape, strong local demand, limited land supply, and government policies are expected to support price resilience. Homebuyers and investors are advised to exercise prudence and focus on long-term investment potential rather than short-term speculation.
The HDB will launch about 5,400 Build-To-Order (BTO) flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands in July 2025. Additionally, HDB plans to launch more than 50,000 BTO flats from 2025 to 2027, including approximately 19,600 BTO flats in 2025.
