SINGAPORE, April 1 — Prices of Housing and Development Board (HDB) resale flats rose by 1.5 per cent in the first quarter of 2025, marking the slowest pace of growth in five quarters.

Minister for National Development Desmond Lee attributed this to the sustained supply of Build-to-Order (BTO) flats and the largest-ever Sale of Balance Flats (SBF) exercise in February.

"This can be attributed to the sustained supply of Build-to-Order (BTO) flats, as well as the largest-ever Sale of Balance Flats (SBF) exercise in February 2025,” Lee said in a Facebook post today, as reported by CNA.

According to flash estimates released by HDB, the resale price index increased by 1.5 per cent in the first quarter, down from the 2.6 per cent rise in the previous quarter and lower than the average quarterly growth of 2.3 per cent in 2024.

Resale volume also declined, with 6,392 transactions recorded up to March 27, representing a 7.7 per cent drop compared to the same period last year.

Lee said there are "early signs of moderation in price growth” for both public and private housing markets.

"We are currently seeing some supply tightness in the resale market,” he said, noting that fewer flats had reached the minimum occupation period (MOP) in recent years due to Covid-19 construction delays.

However, he said the number of new flats reaching MOP will rise significantly from 8,000 this year to 13,500 next year, before increasing to 19,500 in 2028.

"This means that more resale flats are entering the market soon, and the supply tightness will ease,” he added.

The government is also ramping up the supply of new HDB flats, with more than 50,000 BTO units to be launched from 2025 to 2027, as previously announced.

Analysts expect HDB resale prices to rebound in the second quarter.

"While the dip in transaction volume was expected due to the seasonal lull along with the BTO and SBF launches, we anticipate a rebound in (the second quarter) as unsuccessful applicants eventually return to the resale market,” ERA’s key executive officer Eugene Lim said.

"At the same time, the shrinking supply of MOP flats will continue to lend support to prices, especially for newer HDB flats in centrally located and mature estates.”

Huttons’ senior director for data analytics Lee Sze Teck said resale flat prices may "pick up pace” in the second quarter, adding that Singapore is facing its "lowest supply of MOP flats in 10 years.”

Private home prices increased by 0.6 per cent in the first quarter, slowing from the 2.3 per cent growth in the last quarter of 2024, according to flash estimates from the Urban Redevelopment Authority (URA).

The price growth for non-landed properties slowed across all market segments, accompanied by a 15 per cent decline in total sale transaction volume compared to the previous quarter.

Prices of non-landed properties rose by 0.6 per cent, a "significant moderation” from the 3 per cent increase in the previous quarter, URA said.

Landed property prices increased by 0.6 per cent, compared with the 0.1 per cent decrease in the fourth quarter of 2024.

Flash estimates are based on transaction prices from contracts submitted for stamp duty payment and data on units sold by developers until mid-March.

"This positive price appreciation reflects resilient market demand, supported by a steady stream of new project launches in the first quarter,” said Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc.

OrangeTee Group chief researcher and strategist Christine Sun noted that uncertainties remain over interest rate trends.

"Possible trade wars triggered by the United States’ tariff policies could increase inflation, potentially causing interest rates to remain elevated for a longer period,” she said.

"This is despite many countries, including Singapore, implementing rate cuts since mid-2024 in response to declining inflationary pressures.”

She said Singapore’s property market is unlikely to experience significant effects from potential trade wars and interest rate fluctuations in the near term, unless these issues persist over a prolonged period.

"The private residential market is currently driven by domestic buyers, particularly HDB upgraders, who are financially supported by the strong proceeds from the sale of their flats in a robust HDB market,” she said.

"If employment remains stable, income continues to grow, and the HDB market continues to thrive, consumer confidence and spending are expected to remain favourable, which will in turn benefit the private residential market.”