HDB resale flat prices continued their upward trajectory in 1Q2025, rising for a 20th consecutive quarter. Data released by HDB last month showed resale prices grew 1.6% in 1Q2025, bolstered by million-dollar resale flat deals, which reached a record high. The higher prices also came in tandem with higher volume, with 6,590 resale flats transacted in 1Q2025, up 2.6% q-o-q.
Read also: HDB resale price growth slows to 1.6% in 1Q2025 despite record number of million-dollar flats
Despite the “notable resilience” of flat prices and the sustained demand for premium flats, the resale market is showing signs of price resistance, says OrangeTee Group. In a May research report, the firm points out that resale flat price growth in 1Q2025 was slower compared to the 2.7% growth notched the previous quarter and represented a second consecutive quarter of slower growth.
“Furthermore, last quarter’s price growth was lower than the 1.8% recorded in 1Q2024 and is the slowest growth since 4Q2023 at 1.1%,” the report adds.
The narrower 1Q2025 growth was underpinned by slower price growth for several flat types. According to OrangeTee, two-, four- and five-room flats registered a quarterly price increase of 1.5%, 1.9% and 2.1% respectively in 1Q2025, easing from the 2.3%, 2.2% and 2.7% growth rates recorded in 4Q2024. Prices for three-room flats and executive flats bucked the trend, rising 2.2% and 1.4% last quarter, faster than the 1.9% and 0.1% recorded the quarter before.
At the same time, fewer towns saw flat prices grow in 1Q2025. Citing HDB data, OrangeTee’s report notes that 19 towns registered a growth in prices last quarter, while seven saw prices decline. In comparison, 20 towns saw price growth in 4Q2024, while six saw prices decline.
In addition, the towns that saw the biggest quarterly price gains in 1Q2025 (Clementi at 15.4% and Marine Parade at 7.2%) fared lower than the biggest gainers in 4Q2024 (Central Area at 25.6% and Toa Payoh at 12.1%).
Nonetheless, demand for premium flats grew, with 384 million-dollar flats sold in 1Q2025, up from 285 units the previous quarter. A total of 1,183 flats were transacted for at least $800,000, up from 1,115 units in 4Q2024. Tampines saw the highest number of such transactions (134 units), followed by Toa Payoh (120 units), Bukit Merah (115 units) and Kallang-Whampoa (77 units).
The robust activity in the upper end of the price spectrum indicates that affluent buyers remain willing to invest in premium flats, in contrast with buyers in the lower and mid-range market segments that may be more price resistant, says OrangeTee.
Looking ahead, the firm believes resale price growth could continue slowing in the upcoming months, amid an increasingly uncertain macroeconomic landscape stemming from US tariff policies and rising inflation. “Amid an atmosphere of heightened caution, many potential buyers may exercise greater restraint to avoid overstretching their budgets,” the report reads.
On the flip side, the firm notes demand remains steady, backed by domestic buyers, including budget-conscious upgraders and private homeowners downsizing to resale flats. For now, OrangeTee has maintained its resale price growth projection of 4% to 6% for 2025.
