As the HDB resale market navigates a period of uncertainty, signs of price resistance have emerged, evidenced by a notable slowdown in price growth. The latest data reveals that price growth in the HDB resale market has decreased significantly, falling from 2.7% in the fourth quarter of 2024 to just 1.6% in the first quarter of 2025. This marks the second consecutive quarter of diminished growth rates, suggesting that the market may be reaching a tipping point where buyers are less willing to meet rising price expectations.
In the first quarter of 2025, a total of 6,590 resale flats were transacted, a figure that indicates ongoing activity in the market. However, the data also suggests a growing resistance to price increases, particularly among lower and mid-range flats, where potential buyers appear to be more cautious. This trend highlights a shift in buyer sentiment, as individuals in these segments are likely reevaluating their investments in light of broader economic factors.
In contrast, the premium segment of the market is exhibiting a different pattern. Notably, 384 million-dollar flats were sold in the first quarter of 2025, an increase from 285 in the previous quarter, indicating that affluent buyers remain undeterred by the general market conditions.
Furthermore, the number of flats transacted at or above $800,000 rose to 1,183 units in the same quarter. This uptick in high-value transactions suggests that while lower-end buyers are experiencing price resistance, those with greater financial means are still actively engaging in the market. The divergence in buyer behavior between these segments reflects the economic complexities at play, as rising inflation and tariffs imposed by the United States contribute to an atmosphere of caution.
Potential buyers are increasingly aware of these economic pressures, prompting them to be more discerning in their purchasing decisions. Rising inflation, in particular, has created a climate of uncertainty that influences consumer behavior. As costs for goods and services continue to climb, many buyers are reevaluating their budgets and financial commitments.
This has led to increased scrutiny of property prices, especially in the lower and mid-range segments, where buyers are more price-sensitive. In this context, the slowdown in price growth may be seen as a natural response to the economic environment, as buyers push back against escalating costs.
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News Source: Edgeprop
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