Baby boomers’ cash to prop up prices of HDB resale market

Prices are expected to rise about 3% in 2026.

HDB resale demand may moderate in the coming quarter, but liquidity from the baby boomer generation’s savings and stock market gains is expected to lift prices by about 3% in 2026, according to Savills Singapore.

The firm’s Q3 Residential Sales Report showed strong signs of recovery in the private housing sector, with new home sales nearly tripling from 1,212 units in Q2 2025 to 3,288 in Q3 2025—a 183.4% year-on-year surge. The Outside Central Region (OCR) accounted for the largest share of transactions at 39.4%, followed by the Rest of Central Region (RCR) at 33.2% and the Core Central Region (CCR) at 27.5%.

Secondary market sales also gained momentum, rising 5.1% quarter-on-quarter to 4,116 units, the highest quarterly increase since Q2 2024. The CCR led growth with a 12.5% rise to 737 units, whilst the RCR and OCR saw gains of 4.6% and 3%, respectively.

Savills attributed the uptick in resale activity to lower interest rates, high HDB resale prices, and the appeal of larger, older units compared to newer launches.

Foreign and local buying interest also strengthened. Non-landed home purchases by Singaporeans surged 52.9% quarter-on-quarter to 5,661 units, whilst transactions by permanent residents and foreigners rose 13.9% and 70.9%, respectively. Despite the rebound, foreign buying remains subdued compared to pre-2023 levels, before the higher Additional Buyer’s Stamp Duty (ABSD) rates took effect.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, said that whilst sales momentum is likely to moderate, liquidity from older households and strong financial market performance will continue to support prices.

He added that robust October sales reflected sustained strength, driven by accumulated wealth from the baby boomer generation, higher HDB resale prices encouraging upgrades to private housing, and gains from equity markets.

Cheong noted that next year, 80% to 100% sell-out rates for new launches may be harder to achieve.