In a bold announcement that could reshape Singapore's housing market, Minister for National Development Chee Hong Tat hinted at a significant shift in HDB resale flat prices. With a surge of new flats expected to reach their minimum occupation period (MOP) starting next year, prices could see a much-anticipated moderation!

During a recent visit to the Toa Payoh Ridge Build-to-Order (BTO) project, Chee discussed the growing concerns among Singaporeans regarding the rising costs of resale flats. He emphasized that the real issue lies in the dynamics of supply and demand. "We want to help address this concern; I believe this situation will improve, leading to a moderation in pricing," he said.

What’s Driving the Change?

The housing landscape faced major disruptions during the COVID-19 pandemic, resulting in construction delays that hindered supply. Former Minister Desmond Lee noted that this, paired with increasing demand driven by evolving social norms, contributed to steep price hikes in HDB resale flats.

In 2025 alone, approximately 19,600 new BTO flats are slated for launch, part of a broader strategy that sees around 102,300 units introduced between 2021 and 2025—exceeding the government's original commitment of 100,000.

Current Market Trends

Recent data reveals a slowing growth in resale prices, easing to just 1.6% in Q1 2025—the slowest pace since late 2023. Meanwhile, resale transactions saw a modest rise of 2.6%, with 6,590 transactions compared to the previous quarter. Yet, compared to last year, this figure signifies a 6.8% drop.

With 141 million-dollar flats changing hands in April—an unprecedented figure—questions about the impact of new flats reaching the MOP on market dynamics have surged.

Experts Weigh In

According to property analysts from OrangeTee, while the number of flats reaching their five-year MOP is projected to decrease significantly—plummeting from 30,920 in 2022 to only 6,974 in 2025—experts argue a dramatic rise in resale prices is unlikely given the anticipated influx of new BTO flats.

Government's Stance and Future Plans

Amid calls for potential interventions in the housing market, Chee reassured the public that the authorities would closely monitor developments, noting the recent easing of the resale price index. He highlighted plans to ramp up the supply of new BTO flats while allowing the market time to adapt to this increased availability starting in 2026.

Moreover, the implementation of a 15-month wait-out period for private property owners before purchasing non-subsidized HDB flats has already helped cool the high end of the resale market, a temporary measure aimed at curbing soaring prices.

Looking Ahead: VERS and Estate Revitalization

As discussions about the Voluntary Early Redevelopment Scheme (VERS) heat up, Chee revealed that the government would share updates at the right moment. This initiative—targeting older flats with 99-year leases—aims to offer compensation for early buybacks while facilitating residents' transitions to new homes.

Chee asserted the importance of revitalizing aging HDB estates to ensure they remain vibrant and livable for all generations. As Singapore navigates these changes, the future of its housing market appears poised for intriguing transformations.