Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie, noted that more BTO flats - around 8,500 units - were launched in the first six months of this year compared with the previous five years' average of 7,000 units.
"Given the rising HDB resale prices over the past two years, cash-strapped Singaporeans may feel that they are increasingly priced out of the HDB resale market given that prices at many locations have risen by more than double digits and hit new record highs," she said.
The launch of the prime location public housing (PLH) model flats in popular mature locations, such as Bukit Merah and Rochor, have also given buyers more options, she added.
"As there will be more choice BTO flats to be released in the next few sales launches, price growth of HDB resale flats may slow down given the increased competition from the BTO market," she said.