Singapore’s public housing resale market showed clear signs of cooling in 2025, with price growth moderating sharply amid weaker transaction volumes and an improving supply outlook.

According to the Housing and Development Board’s (HDB) flash estimates, resale flat prices rose by 2.9 per cent in 2025, a significant slowdown from the 9.7 per cent increase recorded in 2024. This marks the slowest annual price growth since 2019, underscoring a shift towards a more stable and balanced market.

The HDB resale price index remained virtually unchanged at 203.6 in the fourth quarter of 2025, compared with 203.7 in the previous quarter. Notably, this is the first time resale prices have stayed flat on a quarter-on-quarter basis since the first quarter of 2020. HDB attributed this to four consecutive quarters of decelerating price growth, with the last three quarters of 2025 seeing increases of less than 1 per cent each.

Resale Volumes Decline Sharply

Transaction activity also softened over the year. In the fourth quarter of 2025, resale volume fell to 5,129 transactions, an 18.8 per cent drop from the 6,314 units sold in the same period a year earlier. This marked the second straight quarter of double-digit year-on-year declines in resale volume.

For the full year up to Dec 30, 2025, total resale transactions stood at 26,042 units, down 9.8 per cent from 28,876 in the corresponding period in 2024. The last annual decline in resale volume was recorded in 2023, when transactions fell by 4.2 per cent year-on-year—less than half the pace of the current downturn.

More Supply Expected as MOP Flats Enter the Market

Looking ahead, property analysts expect resale price growth to remain moderate in 2026, largely due to a surge in flats reaching their five-year minimum occupation period (MOP).

More than 13,000 flats are projected to reach MOP in 2026—nearly double the number in 2025. This influx is expected to add a significant number of newer flats into the resale market, offering buyers more choices with longer remaining leases and easing the supply tightness seen in recent years.

Demand Drivers May Cushion Market Impact

The lower bank mortgage rates, healthy income growth and continued population expansion could support buyer demand.

Government Outlook and Upcoming Supply

On the supply front, HDB will launch about 4,600 Build-to-Order (BTO) flats in Bukit Merah, Sembawang, Tampines and Toa Payoh in February 2026. This will be complemented by a concurrent Sale of Balance Flats exercise offering around 3,000 units.

Reiterating its commitment to market stability, HDB said the government will continue to monitor the property market closely and adjust policies where necessary to ensure a stable and sustainable housing market. In view of global economic uncertainties, households were also advised to remain prudent when purchasing properties and taking on mortgage loans.

Overall, while the HDB resale market has clearly cooled from the rapid price escalation of recent years, a combination of rising supply and resilient demand is expected to keep the market on an even keel in 2026.