421 views
Photo by Ryan Lau via Unsplash.

HDB resale prices may rise up to 6% in 2025

Price growth may surpass the 20-month record streak that has stood since 1996.

HDB resale prices are on track to achieve its longest growth streak in 2025, according to OrangeTee.

If no additional property cooling measures or unforeseen macroeconomic uncertainties are introduced, prices are projected to rise a further 4% to 6% in 2025, averaging a 1% to 1.5% growth per quarter.

Resale prices rose 2.6% in Q4 2024, the 19th consecutive quarterly rise, and just one quarter shy of the record 20-quarter streak of price raises from Q1 1991 to Q4 1996.

Consequently, prices are expected to reach their most prolonged continuous growth of 23 quarters by the end of this year, said Christine Sun, chief research & strategist for OrangeTee Group.

Whilst this is the longest streak, it is not the highest, thanks to cooling measures that curbed rapid price increases.

From Q4 1991 to Q4 1996, prices nearly quadrupled, surging 294.4% over 20 quarters or an average of 14.7% per quarter.

In contrast, the estimated cumulative increase from Q1 2020 to Q4 2025 will be 58%.

Whilst prices are set to increase, resale volumes are expected to dip as a result of a limited supply of MOP flats.

Resale volume is estimated to reach 25,000 to 27,000 units in 2025, according to Sun.

The number of flats obtaining their 5-year MOP is projected to fall for the third consecutive year to 6,974 units in 2025 from 30,920 units in 2022. This is the lowest MOP number in 11 years, according to Sun.

Efforts to reduce waiting times for BTO flats under three years may also encourage more potential buyers to purchase BTO flats instead.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Senja Close EC site draws 2 to 6 bids with $715 psf forecast
The site is expected to yield about 295 residential units and is the first EC plot in the area.
Fu Yu receives board change request from shareholder Victor Lim
Fu Yu Corporation Limited has received a new request from shareholder Mr. Victor Lim to propose board changes at its upcoming Annual General Meeting (AGM).
Manufacturing
Chocolate Finance processes all March redemptions on schedule
The company said 100% of requests made during that period were paid out in full by the end of Friday, 21 March.
Stoneweg European REIT starts unit buyback programme
The buyback serves as a flexible, cost-effective capital management tool to enhance returns on equity and NAV per unit.