Intense competition arising from the Build-To-Order (BTO) market, prevailing macroeconomic uncertainties, and a weaker hiring outlook have affected the HDB resale market. In the second quarter of this year, overall prices dipped at a slightly faster pace, on the back of a decline of average prices across many towns. Transaction volumes were also lower year-on-year, reflecting a general market slowdown.  

According to public housing data released by HDB, resale prices posted their second consecutive price decline in 2026, dipping by 0.3 per cent quarter-on-quarter. In the first half of 2026, overall prices dipped by 0.4 per cent – a strong reversal from the 2.5 per cent and 4.2 per cent price gains observed in the first halves of 2025 and 2024, respectively.

As prices held steady, declined or posted marginal growth in many places, demand rose slightly on a QoQ basis. The increase could also be seasonal, as observed historically. However, on a YoY basis, volumes fell across most flat types, indicating that the market is inherently weaker when compared to a year ago.

According to HDB public housing data, resale volume rose marginally by 1.8 per cent from 6,285 units in Q1 2026 to 6,396 units in Q2 2026. This is the lowest Q2 transaction volume since 3,426 resale flats were sold in Q2 2020 during the pandemic.    

Resale transactions rose QoQ across all flat types, with 2-room flats at 3.6 per cent, followed by 5-room flats at 2.9 per cent, 3-room flats at 2.6 per cent, executive flats at 1.9 per cent, and 4-room flats at 0.5 per cent.The total number of 1-room flats increased from 3 units to 5 units. 

On a YoY basis, total volume fell by 9.9 per cent. Volumes fell across most flat types, except for 1-room flats. 2-room and 3-room flat transactions dipped the most by 22.3 per cent and 12.3 per cent respectively, possibly impacted by the surge in 2-room flexi flat supply which may have drawn some buyers away. 

HDB rental demand rose in Q2 due to the seasonal increase as tenants returned from their spring break, or to renew or sign leases before some international schools start their academic year in Q3.

 

According to HDB Public Housing Data, the number of approved applications to rent out HDB flats rose by 4.9 per cent, up from 9,535 units in Q1 2026 to 10,002 units in Q2 2026. Year-on-year, volumes were lower than the 10,066 leases in Q2 2025, indicating stable demand.

The HDB rental market may continue to face pressure, as the public housing stock is poised to rise over these three years. For the whole of 2026, HDB rental prices are forecasted to hold steady at 1 to 3 per cent. Leasing volume may reach 36,000 to 39,000 units in 2026.

Price growth in the HDB resale market may continue to be subdued in the second half of the year, hampered by the macroeconomic uncertainties and dimmer job outlook. Layoffs have been rising in some sectors affected by AI and tech automation, while fewer companies are in expansionary mode.

Flight to affordability will continue to drive buyers to the BTO market. HDB will be launching nearly 8,000 more flats across seven projects in Bedok, Geylang, Sembawang, Tengah, Toa Payoh and Yishun in October. A total of around 24,000 new flats (comprising BTO and SBF flats) would have been launched this year, and the high volume of new flat supply will impact demand for resale flats. The increased competition will place some downward pressure on prices, where price corrections have already been observed in many estates.  

Overall HDB resale prices may enter negative territory, trending between -1 per cent and 2 per cent for the whole of 2026.