Singapore HDB resale prices dip 0.1%, first fall in 7 years, amid rise in million-dollar flat sales

Singapore’s public housing resale market recorded its first price decline in nearly seven years, even as high-value transactions continued to climb.

According to flash estimates released by the Housing and Development Board on 1 April 2026, the Resale Price Index (RPI) fell by 0.1% in the first quarter of 2026.

The index stood at 203.4, down slightly from the fourth quarter of 2025.

The dip follows five consecutive quarters of slower or stagnant growth, signalling a cooling trend after years of sustained increases.

This marks the first decline since the second quarter of 2019, suggesting a potential turning point in the resale market after a prolonged period of expansion.

Transaction volumes and supply pressures

Resale transaction volumes also reflected moderation during the quarter.

A total of 6,179 flats were resold as of 30 March 2026, representing a 4.5% decline compared with the 6,473 units transacted during the same period in 2025.

Analysts attribute the softer performance to increased supply and more cautious buyer sentiment amid economic uncertainty.

According to commentary from OrangeTee & ETC Group, the marginal price decline was driven by a combination of rising supply and competition from new Build-To-Order (BTO) launches.

More flats reaching their Minimum Occupation Period (MOP) have entered the resale market, expanding available inventory and exerting downward pressure on prices.

The agency noted that price trends varied across towns, with most areas recording minimal changes or slight declines, while a few locations saw notable gains.

Million-dollar flats continue to rise

Despite the broader moderation, demand for premium flats remained strong.

Data from PropNex showed that at least 412 resale flats were sold for S$1 million or more in Q1 2026.

This represents an increase of nearly 18% compared with the 350 such transactions recorded in the previous quarter.

The million-dollar deals included 190 four-room flats, 143 five-room flats, 78 executive flats, and one multi-generation unit.

Approximately 15% of these transactions involved flats with a remaining lease of 94 years or more, indicating that many had recently met the five-year MOP requirement.

These units were located in developments such as Northshore StraitsView in Punggol, SkyParc @ Dawson, and projects in the Bidadari estate.

Record-breaking transactions across towns

Several towns recorded new peak resale prices during the quarter, despite the overall decline in the index.

Nine towns saw all-time high prices, including Bukit Batok, Bukit Merah, Clementi, Pasir Ris, Punggol, Queenstown, Sembawang, Sengkang and Tampines.

A notable transaction involved a five-room flat in Dawson Road, which was sold for S$1.7 million in February 2026.

This deal set a new benchmark not only for its flat type but also across the entire HDB resale market, based on government transaction data.

In addition, a two-room flat at SkyParc @ Dawson achieved a record price of S$695,000 during the same month.

These transactions highlight continued demand for well-located and newer flats, even amid broader market moderation.

Analysts point to market stabilisation

Wong Siew Ying, Head of Research and Content at PropNex, described the price dip as potentially significant.

She noted that if confirmed by final figures, it could mark the end of a prolonged period of continuous price growth.

Wong added that the market appears to be transitioning into a more sustainable phase, supported by government cooling measures and increased housing supply.

She also emphasised that demand is likely to remain firm for desirable flats, particularly those in prime locations or with newer leases.

Outlook for 2026

Looking ahead, analysts expect the resale market to remain stable with moderate growth.

PropNex projects that total resale transactions could reach between 26,000 and 27,000 units in 2026, supported by an increase in flats reaching MOP.

Approximately 13,500 units are expected to enter the market this year, compared with 8,000 units in 2025.

Overall resale prices are forecast to grow modestly, with estimates ranging between 2% and 3% for the full year.

OrangeTee & ETC Group similarly expects price growth of around 2% to 4%, citing ongoing economic uncertainties and cautious buyer behaviour.

Upcoming BTO exercise and buyer guidance

The Housing and Development Board also reiterated plans for a new BTO exercise in June 2026.

Around 6,900 flats will be offered across Ang Mo Kio, Bishan, Bukit Merah, Sembawang and Woodlands.

Flat buyers are required to obtain a valid HDB Flat Eligibility (HFE) letter before submitting applications.

Applicants are encouraged to complete their submissions by 15 May 2026 to ensure timely processing.

Caution amid economic uncertainty

The authority warned that the macroeconomic outlook remains uncertain.

Households are advised to exercise prudence when purchasing property and taking on mortgage loans.

This caution reflects broader concerns about global economic conditions and their potential impact on housing affordability.