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 flash estimates released by HDB, resale prices posted their second consecutive price decline in 2026, dipping by 0.3 per cent quarter-on-quarter (q-o-q) after slipping 0.1 per cent in the first 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.  

The HDB resale market is highly influenced by domestic economic indicators, such as employment level and income growth.  Even as the overall labour market conditions stayed largely resilient, total employment growth slowed and retrenchments rose in the first quarter of this year. The dimmer job market and hiring outlook may have prompted buyers to exercise greater caution, resulting in fewer transactions and price falls.

Across the different towns, price declines outnumbered gains. 16 towns registered quarterly price declines, with the largest falls seen in Serangoon (-7.9 per cent), Marine Parade (-7.6 per cent), Geylang (-6.9 per cent), Ang Mo Kio (-5.1 per cent), Sembawang (-3.3 per cent) and Yishun (-2.7 per cent).

Conversely, 10 towns had quarterly price gains, with the majority registering less than 5 per cent growth. The most significant price gains were in Central Area (19.7 per cent), Clementi (4.5 per cent), Jurong East (4 per cent), Queenstown (4 per cent) and Woodlands (3 per cent).  

Price trends rose across most flat types. According to the caveat data from data.gov.sg downloaded on 1 July 2026 (8am), average prices of 2-room (-0.3 per cent) flats registered quarterly price declines in Q2 2026. The other flat types had marginal gains – 3-room flats (0.1 per cent), 4-room flats (0.5 per cent) and 5-room flats (0.3 per cent). The other flat types had positive gains, such as 1.8 per cent for 1-room flats and 1.4 per cent for executive flats.  

Although the HDB market is less affected by global conflicts such as the Middle East war, other macroeconomic uncertainties could impact buying sentiment in the upcoming months. For instance, the hiring outlook has dimmed, as layoffs picked up in certain sectors facing structural changes from AI and tech automation while fewer companies are on expansionary mode. The softer job market and structural layoffs may instill greater prudence in homebuyers, as any changes can impact buyers’ financial confidence and borrowing capacity.

Flight to affordability may continue to impact the HDB resale market, as more buyers pivot away from pricey new flats in mature estates towards more affordable BTO or older resale flats. Fewer buyers will be willing to pay high Cash-Over-Valuation, which will  further slow down the pace of price growth . Deals may also take longer to close. Moreover, the supply of flats remains high with a substantial number of flats reaching MOP in the next three years.

Overall, we have adjusted our price projections down for this year – HDB resale prices may trend between -1 per cent and 2 per cent for the whole of 2026.