As the HDB resale market continues to navigate shifting economic conditions, signs of price resistance are becoming increasingly evident. The latest data indicates a noticeable slowdown in price growth, with an increase of only 1.6% recorded in the first quarter of 2025, a significant decline from the 2.7% growth seen in the final quarter of 2024. This marks the second consecutive quarter of decelerating growth, raising concerns among stakeholders regarding the future trajectory of the market.
Price resistance appears particularly pronounced in lower and mid-range segments. While affluent buyers remain active in the premium flat market, the enthusiasm for more affordable options seems to be waning. This divergence illustrates an emerging two-tier market, where high-end properties continue to flourish, buoyed by a specific demographic, while the bulk of buyers face increasing hesitance in making substantial financial commitments towards resale flats in less expensive segments.
The number of million-dollar flat transactions, however, has seen a significant uptick, with 384 such flats sold in the first quarter of 2025, compared to 285 in the previous quarter. This spike indicates that while some segments of the market are experiencing price resistance, others are thriving. The million-dollar flat sales highlight a strong demand among affluent buyers, evidencing a healthy appetite for high-value properties, even amidst a broader context of market caution.
Local performance varies significantly across different towns, with 19 towns witnessing price growth while seven areas reported declines. This localized price resistance suggests that factors influencing the resale market are not uniform but rather differ from one location to another. Buyers are becoming increasingly discerning, weighing the merits of various neighborhoods before making purchasing decisions. This trend underscores the complexity of the HDB resale market, where external economic factors intermingle with localized conditions.
Economic influences, particularly U.S. tariff policies and rising inflation, contribute to a cautious outlook for future resale price growth. Analysts project growth to moderate further, estimating a slowdown to 4% to 6% for 2025. Such economic headwinds create an environment where buyers are more likely to hesitate, fearing that entering the market may lead to overpaying amid uncertain future valuations.
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News Source: Edgeprop
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