SINGAPORE: Singapore’s HDB resale prices have slipped for the first time in nearly seven years. The drop is slight, just 0.1 per cent in the first quarter of 2026, but it marks a change in direction after years of steady climbs.
The dip follows five quarters of slowing growth. Property observer Lee Nai Jia sees this as a sign the market is settling into a more balanced state, rather than heading for a downturn, Channel NewsAsia (CNA) reports.
A slowdown shaped by policy and supply
The cooling didn’t come out of nowhere. It demonstrates a build-up of policy moves since 2021.
Loan limits were tightened in August 2024, reducing how much buyers can borrow. More flats were set aside for first-time families. Singles also got wider access to public housing options.
At the same time, supply has increased. More Build-to-Order (BTO) flats have been launched, including units in prime areas and projects with shorter waiting times.
In October 2025, over 3,000 flats with waiting times under three years were offered in Bedok, Sengkang and Yishun. That appears to have pulled some buyers away from the resale market. Transactions that month fell sharply, both month-on-month and year-on-year.
New Prime and Plus flats have also changed buyer choices. These homes come with extra subsidies and stricter resale rules, including a 10-year minimum stay. Still, they appeal to buyers willing to think long term.
The result is that the demand that once flowed into resale flats is now being spread across more options.
Not all flats are created equal
Even in a softer market, some flats will hold their ground as homes near MRT stations, schools and amenities still attract strong interest. Newer flats with longer leases also show better price support.
Data from early 2026 backs this up. Flats with 50 to 59 years left on their lease saw prices dip slightly. Those with 60 to 69 years remaining recorded gains of over 3 per cent.
This signals that buyers are becoming more selective, not absent.
Global risks still in the background
External factors are also shaping sentiment. Tensions in the Middle East and wider economic concerns are making buyers more cautious. Some are willing to trade location or size for affordability.
At the same time, uncertainty can push private homeowners to downsize. This could increase demand for larger resale flats, especially in good locations.
A similar pattern appeared in 2022 during the Russia-Ukraine war. That period saw more million-dollar HDB flats and stronger demand in certain towns.
Policy has also stepped in before. The 15-month wait-out rule for private homeowners buying HDB flats was introduced to cool demand at the higher end of the market. That rule remains in place, and there is little sign it will be lifted soon.
What this means for buyers and sellers now
The market seems to be catching its breath now. Sharp price drops usually come with economic stress or a sudden fall in demand.
Current signals point to stability, with small ups and downs rather than a slide.
For buyers, the pressure to rush is easing. Prices are not expected to fall sharply, so waiting for a big bargain may not pay off. A more sensible approach is to focus on affordability and the flat’s quality.
For sellers, expectations need a reset. Pricing will depend more on location, lease and condition than on broad market momentum.
A steadier path ahead
The bigger picture is one of control, not crisis. Policies are doing what they were designed to do: spread demand, increase supply and reduce excessive price jumps.
From where most stand, this is a healthier phase. A market that moves too fast leaves too many people behind. A slower, steadier pace gives both buyers and sellers room to think.
Housing decisions are long-term commitments. In times like this, restraint beats urgency.
