HDB resale price growth to slow amidst buyer caution

Prices rose by 1% in January.

HDB resale prices grew 1% in January, a slight uptick from 0.2% in December, suggesting a shift in bargaining power towards buyers and growing spending caution after prices in many areas saw record high growth, Luqman Hakim, Chief Data & Analytics Officer at 99.co said.

HDB resale prices in Mature Estates and Non-Mature Estates increased by 0.7% and 1%, respectively. In terms of room types, 3-room prices, 4-room prices, 5-room prices, and Executive prices increased by 1.1%, 1.3%, 1.1%, and 0.5%, respectively.

According to the SRX Property Price Index for HDB Resale, the year-on-year, overall price increase was 9.3% from January 2024. 3-room increased by 10.1%, 4-room by 10.4%, 5-room by 7.7%, and Executive by 5.2%.

Both Mature and Non-Mature Estate prices increased by 8.9% and 9.3%, respectively, from a year ago.

A total of 2,329 HDB resale flats were transacted in January 2025, representing a 9.4% increase from December 2024.

Meanwhile, YoY resale volumes in January 2025 were 11.4% lower than the previous year.

Breaking it down by room type, in January 2025, 25.5% of the HDB resale volumes came from 3-room, 45.5% from 4-room, 23.4% from 5-room, and 5.6% from Executive.

Breaking it down by estate, 59.8% of the resale volumes in January 2024 came from Non-Mature Estates. The remaining 40.2% in the month was from Mature Estates.

The highest transacted price for a resale flat in the month was $1.6m for a 5-room flat at Lor 1A Toa Payoh.

Hakim said that resale prices are projected to rise by 4% to 6% in 2025, a more moderate pace compared to the 9% increase in 2024.

“On the other hand, million-dollar flat transactions are expected to remain strong, with the potential to surpass 1,000 units again this year. This is especially for larger homes, such as lofts and maisonettes, as they will likely continue to drive these high-value deals as buyers prioritise spacious living. In January alone, the number of million-dollar flat transactions was just one sale shy of the all-time high (ATH), comprising 5.1% of the total resale volume for the month,” Hakim added.

Meanwhile, the upcoming launch of more Build-To-Order (BTO) flats this year is expected to ease pressure on the resale market, helping to moderate price growth, although global economic uncertainties, including the recent US tariffs, may pose potential headwinds to broader market stability.