Singapore's Apartment Market Shifts: Prices Drop, Impacting Homebuyers Now

Singapore's Apartment Market Shifts: Prices Drop, Impacting Homebuyers Now

HDB resale prices have shown only a 2.88% annual growth in Q4 2025, the lowest since 2019, while salaries outpaced prices for the first time in six years. Will affordability improve?

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The HDB Resale Price Index (RPI) has revealed a modest increase of just 2.88% over the past year, marking the lowest annual growth since 2019. The latest figures show that the index for Q4 2025 is projected at 203.6, with no change from the previous quarter. This stagnation indicates a significant shift in the housing market, especially as salaries in Singapore have increased by 5%, outpacing housing price growth for the first time in six years.

Compared to the previous year, the RPI reflected a notable slowdown, with a 2.6% rise recorded between Q3 and Q4 in 2024. As a result, the affordability of HDB apartments is improving, which may continue into 2026. Predictions suggest that property values could appreciate between 3% and 4% this year, but those estimates seem optimistic given the current trends.

As incomes gradually recover from inflationary pressures, there is potential for resale prices to stabilize or even decline in real terms, easing the financial burden on home buyers in the second-hand market. Observations indicate a positive outlook, with the expectation that trends will continue to favor affordability in the near future.

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