Singapore Property Market Shows Signs of Stabilising, Says Desmond Lee
Public and private housing prices are rising at a slower pace, with fresh supply and post-pandemic recovery supporting a more balanced market.
SINGAPORE – Singapore’s housing market is beginning to show clear signs of stabilisation, according to National Development Minister Desmond Lee. Speaking at a press conference on April 15, Mr Lee attributed this trend to a significant increase in public and private housing supply and a maturing pipeline of HDB flats that will become eligible for resale after meeting their Minimum Occupation Period (MOP) from 2026 onward.
Cooling Price Growth in Both Public and Private Sectors
According to preliminary figures released by the Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA), HDB resale prices grew by an estimated 1.5% in the first quarter of 2025, while private residential prices rose by around 0.6%. Both figures represent slower growth compared to the previous quarter, suggesting that Singapore’s red-hot housing market is finally cooling.
The moderation comes on the back of sustained efforts by the Government to rebalance supply and demand—efforts that began in earnest following the Covid-19 pandemic, which had disrupted construction timelines and created bottlenecks in housing development.
Major Boost in Public Housing Supply
To address this, the Government has ramped up public housing supply in a big way. Mr Lee reaffirmed that more than 50,000 Build-To-Order (BTO) flats will be launched between 2025 and 2027. Of these, 12,000 flats will come with shorter waiting times—less than three years—providing quicker access for home buyers.
In 2025 alone, HDB will release about 19,600 new flats, marking one of the largest single-year supply injections in recent memory.
Additionally, Mr Lee noted that all 75,800 flats delayed during the pandemic—across 92 public housing projects—have now been successfully delivered. The final delayed project was completed in January 2025, closing a difficult chapter that had left many families in limbo.
“Ever since the supply-demand imbalance created by Covid-19, we have worked hard to stabilise the construction sector,” Mr Lee said. “That has been critical to ensuring both public and private housing projects could resume and be completed.”
Private Sector Supply Also on the Rise
It’s not just public housing that is receiving attention. On the private front, housing supply through the Government Land Sales (GLS) programme is also being scaled up.
In the first half of 2025, the GLS programme will supply 8,505 private residential units, up from 8,140 in the second half of 2024. This move is expected to help meet sustained demand from both homebuyers and investors, while discouraging runaway price increases.
Resale Market Set for More Activity from 2026
Another factor expected to influence market dynamics is the wave of HDB flats reaching the end of their five-year Minimum Occupation Period (MOP) starting in 2026. These flats, completed in the early years of the decade, will soon enter the resale market—boosting supply and offering more options for buyers who prefer move-in ready units.
This influx is likely to play a key role in easing pressure on both new launch and resale flat prices.
Policy Changes: Prime, Plus and Standard Flats
Beyond supply-side measures, the Government has introduced structural changes to the public housing model. From October 2024, all new BTO flats are classified into Standard, Plus, or Prime categories, based on their location and proximity to amenities.
- Prime and Plus flats, located near MRT stations and other key facilities, are subject to stricter resale conditions—including a 10-year MOP and subsidy clawback on resale profits.
- Standard flats, located in less central areas, maintain the traditional five-year MOP with no clawback.
These policies aim to ensure affordability and promote inclusivity, while also preventing speculative activity in highly desirable areas.
“Hot-Button Issues” Ahead of Election Season
Mr Lee, who was speaking during the announcement of the People’s Action Party (PAP) slate for West Coast–Jurong West GRC—where he is the anchor minister—highlighted that housing, along with jobs and the cost of living, will be key concerns for voters in the upcoming General Election.
“These are not new issues,” he said. “In almost every GE, they are hot-button issues because they affect so many people—especially now, as we deal with the aftermath of the pandemic.”
He added, “While some would wish the property market cycle follows political cycles, that should not be the way. As stewards of resources, we need to ensure that supply and demand are addressed sensibly.”
Outlook: Balanced Market on the Horizon
With a combination of increased flat launches, policy tweaks, and completed backlog units, the outlook for Singapore’s property market is turning more optimistic. Market observers expect further price moderation and improved accessibility, especially as a growing number of flats reach resale eligibility from 2026 onward.
The Government’s approach to balancing affordability, supply, and stability reflects a long-term vision, one that many hope will keep home ownership within reach for future generations of Singaporeans.
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