Rising supply of HDB flats, global uncertainty set stage for more moderate resale price growth: Analysts

BTO LAUNCHES

A key factor moderating the resale market is the significant ramp-up in public housing supply.

Mr Mohan Sandrasegeran, SRI’s head of research and data analytics, said that while demand will remain due to household formation and lifestyle needs, the expanded pipeline of flats – both new and resale – is expected to keep price growth in check.

“The continued ramp up in BTO (Build-to-Order) housing supply, particularly within mature estates, is expected to play an important longer-term role in anchoring price stability in the resale market,” said Mr Sandrasegeran.

“The introduction of new public housing projects within such areas reflects a deliberate effort to broaden access to highly sought-after locations while supporting a more balanced market outcome.”  

The government plans to launch around 19,600 BTO flats in 2026, including more than 4,000 flats with shorter waiting times of less than three years. 

In the June BTO exercise alone, about 6,900 flats will be offered across various towns, including Ang Mo Kio, Bishan, Bukit Merah, Sembawang and Woodlands.

“This will help to meet the underlying demand for new HDB flats in these areas,” said Mr Eugene Lim, key executive officer at ERA Singapore.

Upcoming BTO projects in prime areas like Upper Thomson and Pearl’s Hill are also likely to draw significant interest and provide a more accessible way for buyers willing to wait to enter popular neighbourhoods, he added. 

This year’s BTO exercises will substantially grow Singapore’s housing supply, diversify options and support more stable resale price growth, he said. 

Separately, the reintroduction of multiple Sale of Balance Flats (SBF) exercises and the availability of shorter waiting-time flats have further broadened options for buyers, reducing the urgency to enter the resale market, said Mr Sandrasegeran.