Public, private property price growth shows signs of moderation

Slower Q1 price increase attributed partly to greater housing supply in both markets

- Grace Leong

Prices of resale Housing Board flats and private homes grew at a slower pace in the first quarter of 2025, according to flash estimates released by the authorities on April 1, in what could be early signs that property prices are moderating.

Minister for National Development Desmond Lee attributed the slower price growth to an increase in housing supply in both the public and private markets, and a drop in overall private home transaction volumes.

Flash estimates show that the HDB resale price index (RPI) grew by 1.5 per cent in the first quarter of 2025, down from 2.6 per cent in the fourth quarter of 2024. It is the lowest growth in the past five quarters.

The RPI has risen for 20 consecutive quarters, but the pace of growth has slowed in the last six months. Analysts cited a 7.7 per cent drop in resale volume in the first quarter of 2025 from a year ago.

In a Facebook post on April 1, Mr Lee attributed the slower price growth to the sustained supply of Build-To-Order (BTO) flats, and the largest-ever Sale of Balance Flats (SBF) exercise in February.

On the private housing front, flash estimates for the private residential price index showed a smaller increase of 0.6 per cent in the first quarter of 2025 compared with a 2.3 per cent increase in the preceding three months, as the price momentum for non-landed properties eased across all market segments.