Singapore HDB Resale Prices Soar in July 2025

The Housing and Development Board (HDB) resale market in Singapore has witnessed a remarkable trend in 2025, with 120 flats transacting at $1 million or more in July alone, a 25 per cent increase from June’s 96 units. This figure represents 3.9 per cent of the month’s total resale volume, a significant share that underscores the growing allure of premium HDB flats. Notably, the tally of million-dollar sales in the first seven months of 2025 has already surpassed the 470 recorded for the entire year of 2023, with 543 such transactions by July. This surge is driven partly by flats in newer projects like Ghim Moh Edge and McNair Towers hitting the resale market after their five-year minimum occupancy period, reflecting a shift toward high-value public housing in prime locations.

In Singapore, where homeownership rates hover around 90 per cent, housing is a pivotal component of personal financial planning. The HDB resale market’s upward trajectory, with a 7.6 per cent year-on-year price increase and specific spikes in four-room (8.7 per cent) and five-room (7.6 per cent) flat prices, reflects both opportunity and challenge. For many Singaporeans, purchasing a high-value HDB flat represents a significant investment, often funded through a combination of Central Provident Fund (CPF) savings, HDB loans, or bank financing. The allure of million-dollar flats, particularly in mature estates, lies in their potential for capital appreciation and their role as a stable asset in a volatile global economy.

The CPF system, a cornerstone of Singapore’s personal finance framework, plays a critical role in enabling homeownership but also demands strategic management amid rising HDB prices. Singaporeans can use their CPF Ordinary Account (OA) to fund up to 100 per cent of an HDB flat’s purchase price, subject to valuation limits, but the 2.5 per cent interest rate on OA savings means that depleting these funds for housing reduces retirement nest eggs. The 39.6 per cent surge in resale volumes to 3,049 flats in July suggests heightened market activity, with many buyers likely tapping CPF savings to capitalize on perceived investment opportunities in premium flats. However, this approach risks over-leveraging, particularly for younger buyers facing 25- to 30-year loan tenures.

The rising prevalence of million-dollar HDB flats amplifies affordability concerns for younger and lower-income Singaporeans. With three-room flats seeing a modest 0.3 per cent price increase and five-room flats dipping slightly by 0.1 per cent in July, the market remains dynamic but increasingly out of reach for some. The 59.5 per cent share of transactions from non-mature estates indicates that buyers are exploring more affordable options, yet even these areas saw a 7.5 per cent year-on-year price hike. This environment demands robust financial discipline, as households must navigate higher down payments, stricter loan-to-value ratios, and rising interest rates, which climbed to around 3.5 per cent for HDB loans in mid-2025.

The HDB resale boom reflects a broader shift in Singaporeans’ investment mindsets, with public housing increasingly viewed as a dual-purpose asset for living and wealth preservation. The 48.3 per cent year-on-year increase in resale volumes compared to July 2023 suggests that more Singaporeans, including private property downgraders, are reallocating capital into HDB flats to diversify their portfolios or optimize cash flow. This trend aligns with Singapore’s broader economic stability, with GDP growth projected at 2.5 per cent for 2025, but it also highlights the need for informed investment decisions in a high-cost environment where inflation, at 2.4 per cent in mid-2025, erodes purchasing power.

The HDB resale market’s trajectory in 2025, marked by record-breaking million-dollar transactions and robust price growth, signals both opportunity and caution for Singaporeans navigating their personal finances. As housing costs rise, particularly in sought-after mature estates, individuals must prioritize financial literacy to make informed decisions about homeownership. Younger buyers, in particular, should assess their CPF usage carefully, ensuring they retain sufficient savings for retirement while meeting housing aspirations. For those eyeing premium flats, stress-testing financial plans against potential interest rate hikes or economic downturns is essential to avoid over-leveraging.