Resale Prices | Modest Growth

HDB resale price growth posted its smallest quarterly gains in nearly five years, as the market slowed down in the third quarter. According to the HDB public housing data, the resale price index rose at a modest pace of 0.4 per cent in Q3 2025, down from the 0.9 per cent growth in Q2 2025 and 1.6 per cent in Q1 2025 (Figure 1). This marks the fourth consecutive quarter of slower price growth, and the lowest quarterly increase since the 0.3 per cent recorded in Q2 2020 amid the pandemic. On a year-on-year basis, prices rose by 5.6 per cent in Q3 2025.

Year-to-date, resale prices increased by 2.9 per cent, which is less than the 3.8 per cent and 6.9 per cent growth over the same periods in 2023 and 2024, respectively. Nevertheless, the market has now recorded 22 consecutive quarters of increases from Q2 2020 to Q3 2025 – the longest uninterrupted uptrend on record to date.

The more gradual pace of increase reflects a cooling in demand for resale flats, as buyers turn to new BTO and SBF (sale-of-balance flats) launches, with around 30,000 new units offered this year. Over 9,000 new flats, with many in choice locations, were released in the October BTO (build-to-order) sales exercise. It marks the inaugural launch of new flats in Mount Pleasant and Greater Southern Waterfront.

Furthermore, prices have surged by 54.9 per cent over the span of 23 consecutive quarters from Q1 2020 to Q3 2025 – resulting in wider gaps between seller expectations and buyer affordability.  With more sellers asking for record prices and buyers showing resistance, the rising price disparities have led to slower deal negotiations and a generally more challenging resale market.

According to data.gov.sg, average prices either decreased or rose at a slower pace for most flat types (Figure 2). For instance, prices of 5-room flats increased modestly by 0.7 per cent quarter-on-quarter (q-o-q) in Q3 2025 compared to the 1.2 per cent growth in Q2 2025. Similarly, prices increased by a marginal 0.3 per cent for 4-room flats in Q3, down from 1.4 per cent growth in Q2. 

Resale Volume | Increased Modestly

Resale volume rose modestly by 1.7 per cent from 7,102 units in Q2 to 7,221 units in Q3 2025 (Figure 3). The increase was smaller than the 7.8 per cent q-o-q growth observed in Q2 and 2.6 per cent in Q1. Year-to-date, 20,913 units were sold, which is 7.3 per cent lower than the 22,562 units transacted in the corresponding period of 2024. 

The slower sales may be attributed to the cumulative release of more than 100,000 BTO flats since 2021. Of these, around 39,000 BTO units (excluding Sale of Balance Flats) were released in 2024 and 2025 alone, which significantly diverted demand from the resale market. Moreover, more BTO flats with shorter construction periods were sold. This will directly compete with the resale market, as the waiting period for new flats is not significantly longer, and they are highly subsidised. 

Popular towns with the highest transactions in Q3 2025 were Sengkang (551 units), Tampines (488 units), Punggol (476 units), Yishun (472 units), Woodlands (454 units), and Jurong West (441 units).

Premium Flats | Record Million-Dollar Flats

At the upper end of the resale market, demand for premium flats continued to strengthen as more private homeowners fulfilled their 15-month wait-out period. These buyer are flushed with cash after selling their private properties. 

According to HDB caveat data from data.gov.sg, the number of resale flats sold for at least S$800,000 increased for a third consecutive quarter to 1,506 units in Q3 2025, up from 1,480 units in Q2 and 1,182 units in Q1. Toa Payoh clocked the highest transactions in Q3 at 148 units, followed by Tampines at 126 units, Bukit Merah at 120 units, Sengkang at 104 units and Kallang/Whampoa at 103 units. 

The number of million-dollar transactions jumped by 15.7 per cent from 415 units in Q2 2025 to 480 units in Q3 2025, inking another quarterly record. 

The priciest transaction was a 5-room flat at Pinnacle @ Duxton sold for S$1.6 million in August 2025. This is the third flat transacted for at least S$1.6 million historically. The other two transactions took place earlier this year in Toa Payoh and Queenstown.

Rental | Demand Rebounded

HDB rental demand rebounded in Q3 as more tenants rushed to secure accommodation before the year-end holidays. The non-residential population has also increased over the past year, with a jump in foreign workforce across all pass types, from work permit holders to employment pass holders – further supporting demand for HDB rental housing. 

According to HDB Public Housing Data, the number of approved applications to rent out HDB flats rose modestly by 0.6 per cent q-o-q, from 10,066 units in Q3 2025 to 10,123 units in Q3 2025 (Figure 4). Year-to-date, rental volume totalled 29,851 units. Year-on-year, rental volume jumped by 11 per cent from 9,118 units in Q3 2024. 

HDB rents climbed at a slightly faster pace. According to the SRX-99.co, HDB rental price index, rents increased by 0.8 per cent q-o-q in Q3 2025, faster than the 0.5 per cent growth in the preceding quarter (Figure 5). 

Rental demand may soften in the months ahead, as the ongoing economic uncertainties continue to weigh on business and manpower expansionary plans. Many companies are still grappling with high manpower costs and are likely to maintain current headcounts rather than pursue aggressive expansionary plans.

The final quarter of the year will likely see a further slowdown in rental demand due to year-end holidays. For the whole of 2025, rental prices may rise modestly by up to 2 per cent, while rental transaction volume is expected to reach between 37,000 and 39,000 units.

BTO | New Features And Shorter Wait Times 

HDB launched over 9,000 new flats in the third and final BTO sales exercise of the year, featuring ten new projects across eight different towns (Figure 8). This BTO sales exercise was keenly watched by both private homeowners and new flat applicants, as this marks the inaugural launch of public housing in the newly developed areas at the Greater Southern Waterfront and Mount Pleasant.

For the new flats launched at the Greater Southern Waterfront along Telok Blangah Road, Singaporeans were enticed by the good location – within walking distance to the Telok Blangah and Labrador MRT stations. Residents can conveniently reach Harbourfront Centre and VivoCity by car or public transport. There are several parks nearby, including Labrador Nature Park and Mount Faber Park. 

At Mount Pleasant, the Mount Pleasant Crest BTO project was popular as it is situated next to the upcoming Mount Pleasant MRT station. Applicants will have the option to choose a “white flat” layout, which is an open concept design that allows homeowners the flexibility to customise their living spaces. This project is close to many reputable schools like Raffles Girls’ School, Raffles Institution, CHIJ Primary and Secondary schools and SJI International School which may attract strong interest from families. 

Yishun, Chencharu attracted many buyers despite being a new area. The strong demand could be due to the excellent location – close proximity to schools and within walking distance to the MRT station. The project also has a short waiting time and five-year MOP. This means that the buyers could potentially collect the keys earlier and exit the market faster when compared to other homeowners who purchased Prime and Plus flats. 

Competition from the primary market will continue to be stiff as more flats offer shorter wait times. This presents a significant threat to resale flats, which were deemed to be attractive for their immediate occupancy. Furthermore, certain BTO projects provide integrated facilities, including pre-schools within the BTO projects, which will appeal to young couples who can enjoy easy drop-off and pick-up after work. Others are near medical and healthcare facilities that aid families with elder parents. 

Outlook | Slowdown in Q4

HDB resale prices are expected to remain stable or experience a slight decline in the fourth quarter, as demand typically falls during the year-end holidays. Sales could also be affected by the increase in BTO supply, with over 9,000 new flats released in October. 

Interest rates are anticipated to decline further in the next few months. The US Federal Reserve has lowered rates by a quarter point in September, and there could be one or two more cuts by end of the year. However, the impact on the resale market may be limited, as many buyers have opted for HDB loans in recent years. Those who are taking private loans have likely locked in fixed rates for one or two years.