HDB resale flat prices to grow slower in 2025

Huttons estimates HDB resale transactions at 26,000 to 28,000 in 2025.

HDB resale flat prices are expected to grow at a slower pace of 5% to 8% in 2025, compared to 10% in 2024, amidst constrained supply, Huttons said.

In a note, Huttons said HDB resale flat transactions are estimated to be between 26,000 to 28,000.

It said the number of flats meeting the Minimum Occupation Period (MOP) is set to drop further, and Build-To-Order (BTO) launches are expected to decrease to 17,290 units, 12% fewer than in 2024.

The introduction of Standard, Plus, and Prime classifications for BTO flats has added uncertainty to the market, likely tilting demand towards resale flats due to the absence of restrictions.

“While the Standard and Prime flats are easy to identify, buyers are in the dark on which BTOs will fall under the Plus category,” Huttons said.

Despite the expected slowdown in growth, the million-dollar flat market is forecasted to remain active, with transactions stabilizing at around 900 to 1,200 units in 2025.

Huttons also noted that potential lower interest rates could encourage buyers to take on larger loans, sustaining demand for executive condominiums and high-value resale flats.