Singapore’s Housing Board Market Hits New Heights
Well, it turns out that the resale market for Housing Board (HDB) flats is on a roll, spiking for the sixth quarter in a row and even surpassing the peak of 2013 by a modest 0.7 %. For the July‑September stretch, prices climbed 2.7 %—just a smidge less than the 3 % gains seen earlier this year—while the year‑on‑year rise clocks in at a hefty 12.3 %.
Why Prices Keep Climbing
The pandemic knocked the economy sideways, but it also created a nasty bottleneck in the housing supply chain: manpower scarcities, disrupted deliveries, and a handful of construction companies going out of business. These hiccups have pushed demand for resale flats higher than supply can keep up.
In the words of Nicholas Mak, head of research at ERA Realty, “The backlog and shortages in the construction sector are tightening the market and are expected to keep pushing resale prices up for the near term.” Yet, the 2.7 % uptick this quarter might be a hint that the rally could be leveling out.
Crunching the Numbers
- Monthly growth at 3 % outlook is unsustainable given wages and the population growth lag.
- Year‑to‑date hike sits at 8.9 % vs. 14 % post‑circuit breaker.
- Since the last low in Q2 2019, we’ve seen a 15 % increase.
What’s Fueling the Boom?
There are two major streams feeding the surge:
- BTO drift to resale – Couples are taking the route of completed homes because BTO timelines felt like waiting for a slow‑moving toddler.
- Upgrades – As households grow and remote work proves to be the new normal, buyers are snapping up bigger flats that still sit below private housing prices.
Christine Sun from OrangeTee & Tie emphasizes that private housing is on the rise while the supply of megacities shrinks. This forces many to look at HDB flats as still the (relatively) affordable option.
Million‑Dollar Momentum
Dr. Tan Tee Khoon from PropertyGuru adds that the number of million‑dollar HDB transactions is climbing. Last quarter, we saw 67 such high‑priced deals, with the most expensive being a five‑room flat in Bishan that traded for US $1.295 million in July.
New BTO Flavors on the Menu
HDB announced the forthcoming launch of around 4,400 BTO flats in spots like Choa Chu Kang, Hougang, Jurong West, Kallang/Whampoa, and Tengah. These projects are in the review stage, but once green‑lit, more details will be unfurled.
- Overall 17,000 BTO units are on track for this year, beating last year’s 16,800 and the 2019 figure of 14,600.
- Again, some balance flats earmarked for Sale of Balance Flats and open booking will sweeten the pot.
- February of next year will welcome an extra 2,000‑3,000 BTO units in Geylang, Tengah, and Yishun.
With HDB staying vigilant—“Keeping an eye on demand and tweaking plans when needed”—the market remains nimble.
What to Expect in the Remainder of 2025
- Resale prices could push 11‑12% ahead—one of the fastest climbs since 2010.
- Estimated 3rd‑quarter transactions rise 19.8% from the previous quarter.
- Fourth‑quarter price growth projected at 2‑2.5%, nudging the annual gain past 11%.
- Full‑year volume forecast lands between 28,000 and 29,000 flats.
