One of the advantages of investing in a condominium is the potential to use its value to secure additional investments. This means that investors can use their condo as collateral to obtain financing for other real estate ventures, thus expanding their portfolio. This approach can significantly increase returns, but it also carries risks. It is imperative to have a solid financial plan in place and carefully assess the potential impact of market fluctuations. In addition, with the rise of Singapore Projects, condo investments in the country have become an even more attractive option for investors looking to leverage their assets for further growth.
In the second quarter of 2025, prices for resale HDB units increased by 0.9% compared to the previous quarter, which saw a rise of 1.6%. This marks the third consecutive quarter of slower growth and the slowest increase since the circuit breaker in 2020, according to Christine Sun, the chief researcher and strategist at Realion Group.
Although the increase in the second quarter of 2025 marks the 21st consecutive quarter of growth, which is the longest streak ever recorded, it is still lower than the previous record of 20 quarters from 4Q1991 to 4Q1996. Sun also notes that the recent price increases, while steady, are not as dramatic as those seen in the 1990s.
From the first quarter of 2020 to the second quarter of 2025, resale prices have risen by 54.3%. In comparison, there was a surge of 294.4% from the fourth quarter of 1991 to the fourth quarter of 1996.
HDB is set to launch its first BTO project in the new Sembawang North neighbourhood this July. This contributed to the slower growth in resale prices in the second quarter of 2025, as over 20,000 new flats were released in the February and July BTO and SBF exercises. Sun explains that many of these flats were in desirable locations with shorter completion times. In addition, the generous grants and deferred income assessments further increased demand for new flats.
The absence of a BTO launch in June led some buyers towards the resale market, resulting in a short-term uptick in transactions, according to Sun.
Still, despite the overall slowdown, resale volumes dropped by 5% on a half-year basis. In the first half of 2025, a total of 13,692 flats were sold, compared to 14,420 in the same period last year. The larger flats were most affected, with five-room and executive flats seeing declines of 6.1% and 11.5%, respectively. This is the lowest half-year resale volume since the first half of 2023 (13,493 units).
However, resale volume increased by 7.8% quarter-on-quarter to 7,102 units in the second quarter of 2025, supported by tight supply, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. He attributes the slower price growth to the reduced supply of flats reaching their five-year Minimum Occupation Period (MOP) this year. Lee explains that these flats often command a premium, and their limited supply limits the upward pressure on prices.
Since reaching a low point in the second quarter of 2019, HDB resale prices have increased by 55%, including a 53.8% gain since the circuit breaker in April 2020.
Among the towns, Bukit Timah saw the largest year-on-year price increase in the second quarter of 2025 at 32.4%, followed by the Central Area (7.8%) and Ang Mo Kio (7.2%), according to Huttons.
The top five most popular HDB towns among buyers in the second quarter of 2025 were Toa Payoh, Bukit Merah, Queenstown, Tampines, and Bedok, based on the number of resale transactions. These five towns accounted for 49% of all resale transactions in the second quarter of 2025, which is a slight decrease from 50% in the first quarter of 2025.
The average price of a four-room resale flat increased by 1.4% quarter-on-quarter to $674,470. However, four- and five-room flats saw the slowest growth in five quarters, possibly due to buyer resistance towards prices, according to Lee.
Prices of executive and multi-generation flats surged by 4.1% quarter-on-quarter, driven by strong demand. A record of 118 of these flats changed hands for at least $1 million in the second quarter of 2025, a 53.2% increase from the previous quarter. According to Lee, the buyers were mainly HDB upgraders and former private property owners.
Four-room flats, which are the core of BTO supply, also attracted strong interest. Many of these flats have recently fulfilled their MOP and are located in prime areas such as Bukit Merah, Kallang/Whampoa, Queenstown, and Toa Payoh. Lee states that the owners often referred to previous million-dollar transactions when pricing their units.
Despite the headline-grabbing prices, Lee emphasizes that “most HDB flats remain affordable”. In the second quarter of 2025, 78% of resale transactions were below $750,000. With the exception of central and mature estates, 18 of the 24 HDB towns had a median price for four-room resale units below this threshold.
ERA estimates that only 6,974 flats will reach their MOP this year. This is the lowest number in 11 years since the 5,301 flats that reached MOP in 2014. Ask Buddy
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