A deceleration in price growth was observed for some flat types. Based on HDB caveat data from data.gov.sg, 4-room flats posted a quarterly price increase of 1.9 per cent in Q1 2025, lower than the 2.2 per cent growth observed in the previous quarter (Chart 2). 5-room flats experienced a quarterly growth rate of 2.1 per cent in Q1 2025, compared to 2.7 per cent in Q4 2024, while 2-room flats registered a growth of 1.5 per cent, down from 2.3 per cent across the same period. Conversely, 3-room flats registered a faster pace of growth of 2.2 per cent, up from 1.9 per cent, while executive flats rose by 1.4 per cent, up from 0.1 per cent over the same period. 

The number of towns registering a quarterly price growth dipped from 20 in Q4 2024 to 19 in Q1 2025 (Table 1). Meanwhile, the number of towns experiencing a quarterly price decline rose from six to seven over the same period. Last quarter, the most substantial price increases were observed in Clementi (15.4 per cent), Marine Parade (7.2 per cent), Bukit Merah (6.2 per cent) but they were smaller than the highest gains in the Central Area (25.6 per cent) and Toa Payoh (12.1 per cent) in Q4 2024. 

In the first quarter of 2025, the resale volume rose by 2.6 per cent from 6,424 units sold in the fourth quarter of 2024 to 6,590 units in the first quarter of this year (Chart 3). When compared to the first quarter of 2024, the total resale volume declined by 6.8 per cent from 7,068 units. This is the lowest Q1 volume since Q1 2020 when 5,893 units were transacted during the onset of the pandemic.

Despite the lower sales volume compared to the same period last year, the overall performance of resale flats in the first quarter of this year is considered remarkable. The resale market faced intense competition from the primary market, as HDB introduced more than 10,000 new flats during the BTO and SBF sales exercise in February 2025, coinciding with a continued price increase observed in the previous quarter.

At the upper end of the price spectrum, demand for premium flats increased. The number of resale flats transacted for at least S$800,000 rose from 1,115 units in Q4 2024 to 1,183 units in Q1 2025. This is also higher than the 876 transactions registered year-on-year. Tampines (134 units) recorded the highest number of such transactions in Q1 2025, followed by Toa Payoh (120 units), Bukit Merah (115 units), Kallang / Whampoa (77 units), and Queenstown (74 units) in Q1 2025. 

Moreover, the number of million-dollar transactions rose from 285 units in Q4 2024 to 348 units in Q1 2025, which was a record number of such flats sold in a quarter. The highest priced resale flat was transacted in January 2025 at S$1.6 million for a 117 sqm DBSS unit at Toa Payoh Lorong 1A. Transactions that were at least S$1.3 million increased marginally from 42 units in Q4 2024 to 43 units in Q1 2025.

Demand for premium flats remains strong, even as price growth has been steadily slowing across the overall HDB resale market. The trend indicates that potential buyers in the lower and mid-range market segments may be more price resistant, whereas affluent buyers appear unfazed and are willing to invest in premium flats. Anecdotally, some million-dollar flat transactions, particularly 4-room flats, were purchased by private home downgraders who are cash-rich after selling their private properties. 

The macroeconomic landscape is likely to face increased uncertainties due to trade wars stemming from tariff policies enacted by the United States and rising inflation, which could lead to sustained elevated interest rates. Demand for resale flats may hold steady as the market is primarily bolstered by domestic buyers.

The market stability will hinge on several factors, such as job security, household income growth and mortgage rate fluctuations. Moreover, the market will continue to be supported by budget-conscious buyers upgrading within the same HDB sector, as well as private homeowners downsizing to resale flats that offer greater affordability compared to private properties.

However, the mid-term outlook is dependent on how the ongoing trade war might escalate. Amid an atmosphere of heightened caution, many potential buyers may exercise greater restraint to avoid overstretching their budgets.

Therefore, the conservative approach to home buying may continue to slow the pace of price growth in the upcoming months. Sellers of certain flats may face limited price increases and might need to adjust their expectations to remain competitive in a cautious market. These include less attractive flats, such as those located in less ideal locations, that have shorter balance leases or lack unique product features.