In the second quarter of 2025, HDB resale flat prices saw a modest quarter-on-quarter increase of 0.9%, marking the slowest growth rate since the second quarter of 2020. This latest growth reflects a continued trend of appreciation in the resale market, albeit at a decelerating pace. Notably, this 0.9% rise represents the 21st consecutive quarter of growth in resale flat prices, a streak that has persisted despite the gradual slowing of the market.
In comparison, previous quarters had reported growth rates of 1.6% and 2.6%, indicating a clear downward trend in the momentum of price increases. Since the beginning of 2025, overall resale flat prices have seen a cumulative increase of 2.5%. This growth, however, signals a shift in the dynamics of the market, as analysts expect this moderate trend to continue for the remainder of the year.
Forecasts suggest that the full-year growth rate for HDB resale flat prices may settle between 4% and 6%, reflecting a more conservative outlook amid broader economic considerations. Examining specific categories of flats reveals a varied performance among different sizes. In the second quarter, average prices for four-room and five-room flats rose by 1.3% and 1.2% respectively, demonstrating a steady demand for larger units.
Meanwhile, two-room and three-room flats experienced increases of 1.4% and 2.1%, respectively, indicating a robust interest in smaller, more affordable housing options. This varied growth across different flat types underscores the complexity of the resale market and the diverse needs of homebuyers. The current growth trajectory raises questions about the sustainability of the price increases and the factors influencing buyer sentiment.
Analysts suggest that a combination of market saturation, economic uncertainties, and changing consumer preferences could contribute to the moderated growth rates observed in recent months. As potential homebuyers weigh their options, the recent price increases may lead to a more cautious approach in purchasing decisions, particularly for those navigating a market that has seen significant price appreciation over an extended period.
While the data indicates a slowdown, it is essential to recognize that the long-term trend remains upward, with the resilience of the HDB resale market evident despite fluctuations in growth rates. The continued demand for HDB flats, coupled with a limited supply, suggests that prices may stabilize rather than decline.
As the market evolves, stakeholders will be keenly observing how these trends unfold, particularly in light of external economic factors that may influence buyer confidence and investment strategies.
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News Source: Edgeprop
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