Singapore’s Housing Development Board (HDB) has announced plans to launch over 50,000 Build-to-Order (BTO) flats between 2025 and 2027, surpassing its five-year flat launch target. This ambitious move comes as part of the government’s ongoing efforts to address housing demand and ensure affordability for Singaporeans. While this initiative is undoubtedly welcome news for prospective homebuyers, its implications for the HDB resale market in 2025 warrant closer examination.

Increased Supply and Its Effect on Resale Demand

With a significant influx of new flats entering the pipeline, the resale market may experience downward pressure on demand. Buyers who previously turned to resale flats due to long waiting times for BTO projects may now be incentivized to opt for new flats, particularly if waiting times are reduced and flats are launched in popular locations. This shift could result in a cooling effect on resale flat prices, especially for units located in less attractive or mature estates.

Price Segmentation in the Resale Market

However, not all segments of the resale market may be equally affected. Flats in prime locations or near key amenities such as MRT stations, reputable schools, and major shopping hubs may continue to command high prices due to their enduring desirability.

Additionally, resale flats with unique attributes—such as larger layouts catering to multi-generational families, high floors with scenic views, or those falling under the Prime Location Public Housing (PLH) model—may maintain strong demand and retain their value. This suggests a potential bifurcation in the resale market, where flats with attractive characteristics sustain high demand, while others, particularly those in less accessible or aging estates, experience a price correction due to softer interest from buyers.

Impact on Upgraders and Downgraders

The increased supply of BTO flats may also affect homeowners who are considering upgrading or downgrading. Upgraders looking to sell their current flats to purchase private property may face longer selling times or reduced offers, particularly if their flats are located in less desirable areas. Conversely, downgraders might find it easier to secure affordable resale flats, which could encourage more seniors to right-size their homes.

Upgraders: These are homeowners looking to sell their current HDB flats to purchase private properties
Downgraders: These are homeowners, often seniors, seeking to move into smaller or more affordable flats

Short-Term Disruptions vs. Long-Term Stability

In the short term, the anticipation of a large supply of new flats might create uncertainty in the resale market, as potential buyers and sellers adopt a wait-and-see approach. This could lead to a temporary slowdown in transaction volumes as stakeholders assess the market’s direction. Sellers may find themselves needing to adjust pricing expectations to attract interest, while buyers might delay purchases in anticipation of further price moderation.

However, in the long run, the additional supply is likely to stabilize the market by reducing speculative pressures and ensuring that resale flat prices remain more affordable and aligned with broader economic fundamentals, including wage growth and cost-of-living adjustments.

Policy Measures to Cushion the Impact

To mitigate potential disruptions, the government may need to complement the supply increase with targeted measures. These could include providing grants for first-time resale flat buyers, adjusting eligibility criteria for resale transactions, or introducing new cooling measures to prevent speculative activity.

Conclusion

The launch of over 50,000 new HDB flats between 2025 and 2027 is a significant step towards addressing Singapore’s housing needs. While this move is likely to have a moderating effect on the resale market, the extent of the impact will depend on factors such as location, flat attributes, and market sentiment.

Prospective buyers and sellers should stay informed about policy changes and market trends to navigate the evolving landscape effectively. Ultimately, this development underscores the government’s commitment to ensuring affordable and sustainable housing for all Singaporeans.

Over 50,000 HDB BTO flats to be launched from 2025 to 2027 - Its impact on HDB Resale Market in 2025