As the HDB resale market navigates through shifting economic currents, signs of price resistance have become increasingly apparent. Recent data reveals a notable slowdown in price growth, with an increase of just 1.6% recorded in the first quarter of 2025, down from 2.7% in the previous quarter. This decline marks the second consecutive quarter of reduced growth, indicating a potential shift in buyer sentiment amid fluctuating economic conditions.
In the first quarter of 2025, the market saw 6,590 resale flats transacted, reflecting a quarter-on-quarter increase of 2.6%. While transaction volumes appear robust, the overall market sentiment suggests a growing resistance to price increases, particularly within the lower and mid-range segments of HDB flats. This trend raises questions about the sustainability of current price levels, especially as economic factors such as inflation and international trade dynamics exert pressure on potential buyers.
Interestingly, despite this resistance in less expensive flats, the premium segment has demonstrated remarkable strength. A record high of 384 million-dollar flats was sold in the same quarter, indicating that demand for high-end properties remains undeterred. This contrasting performance underscores a bifurcated market where wealthier buyers continue to invest in premium real estate, while those in lower price brackets face more challenges in navigating rising costs.
Price changes across various flat types further illustrate the mixed performance within the market. Two-room flats recorded a modest increase of 1.5%, while four- and five-room flats saw slightly higher growth rates of 1.9% and 2.1%, respectively. In contrast, three-room flats experienced a more pronounced increase of 2.2%, while executive flats lagged behind at 1.4%. These discrepancies point to a nuanced landscape where different flat categories respond distinctly to economic pressures and buyer preferences.
The broader economic context plays a crucial role in shaping these market dynamics. Analysts at OrangeTee project a slowdown in resale price growth, forecasting an increase of only 4% to 6% for the entire year of 2025. Factors such as rising inflation and changing US tariff policies are expected to contribute to this tempered outlook, suggesting that buyers may adopt a more cautious approach to purchasing decisions.
NEW CONDO LAUNCH: RIVER GREEN
River Green is a newly launched condo project that blends modern amenities with natural surroundings, catering to various buyer needs with its diverse unit types.
The River Green floor plan offers options from compact apartments to spacious family units, ensuring there’s something for everyone.
Positioned strategically near transport links, it enhances accessibility while promoting sustainable living through eco-friendly designs.
For detailed information on pricing, project specifications, and to access the River Green e-brochure, interested buyers can explore further.
View RIVER GREEN ShowFlat & Get VVIP Discount. Register or contact 6100 8822 to book showflat appointment.
News Source: Edgeprop
Images are not actual photos. For illustration purpose only.