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SINGAPORE: Housing and Development Board (HDB) resale prices are expected to grow at a more measured pace in 2026, due to an expanding supply of flats, said property analysts.<\/p>\n
Global uncertainties could also weigh on demand, they added.<\/p>\n
This comes as the market showed further signs of moderating. According to flash estimates released by HDB on Wednesday (Apr 1), the resale price index for the first quarter fell by 0.1 per cent – the first quarterly drop in almost seven years.<\/p>\n
It follows five consecutive quarters of slower or flat price growth.<\/p>\n
Analysts said the data suggests that the market is transitioning towards a more sustainable phase, projecting growth of between 2 per cent and 5 per cent.<\/p>\n
A key factor moderating the resale market is the significant ramp-up in public housing supply.<\/p>\n
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.<\/p>\n
\u201cThe 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,\u201d said Mr Sandrasegeran.<\/p>\n
\u201cThe 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.\u201d \u00a0<\/p>\n
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.\u00a0<\/span><\/p>\n 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.<\/span><\/p>\n “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.<\/span><\/p>\n Upcoming BTO projects in prime areas like Upper Thomson and Pearl\u2019s 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.\u00a0<\/span><\/p>\n This year’s BTO exercises will substantially grow Singapore’s housing supply, diversify options and support more stable resale price growth, he said.\u00a0<\/p>\n 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.<\/p>\n<\/div>\n