Overall price trend
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, 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. 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.
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.
Price by flat type
According to data.gov.sg, average prices either decreased or rose at a slower pace for most flat types. 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.
Conversely, flat prices declined by 0.4 per cent for 1-room, 0.8 per cent for 3-room, 1.5 per cent for executive and 6.2 per cent for multi-generation, reversing positive gains in the preceding quarter. 2-room flats were the exception, with a 3.1 per cent q-o-q increase, faster than the 1 per cent increase in Q2.
Resale volume
Resale volume rose modestly by 1.7 per cent from 7,102 units in Q2 to 7,221 units in Q3 2025. 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 (453 units), and Jurong West (441 units).
Rental
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. 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.
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.
Outlook
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.
Moreover, the income ceiling for couples applying the BTO flats, as well as the minimum age of 35 for singles purchasing flats, will be reviewed. Should more buyers become eligible to buy BTO flats, some demand could be diverted from the resale market. This may result in slower price growth or even temporary price stagnation.
Prices are expected to rise 3 to 5 per cent for the whole of 2025, with total resale flats transactions may reach around 28,000 to 29,000 units.