2025 a year to buy resale or should wait

In 2025, the Singapore property market is expected to be influenced by several key factors that could impact your decision to buy a resale property or wait.

Resale Market Dynamics

• The HDB resale market is anticipated to see moderate price growth of 4 to 6%, driven by a constrained supply of flats reaching their Minimum Occupation Period (MOP). The number of MOP flats is expected to hit an 11-year low in 2025, which will likely keep prices elevated.
• Private resale property prices are also expected to rise, albeit at a slower pace of 3 to 4%, due to high land and construction costs, as well as sustained demand from buyers who may be priced out of new launches.

Interest Rates and Financing

• There is a possibility of further easing in interest rates, which could reduce mortgage financing costs and enhance affordability. This could encourage more buyers to enter the market, potentially driving prices up.

Supply and Demand

• The supply of new HDB flats through the Build-To-Order (BTO) program will continue, but the number of resale flats available will remain limited. This imbalance is likely to keep resale prices firm.
• In the private market, developers are expected to launch around 8,000 to 9,000 new homes in 2025, but high launch prices may push buyers towards the resale market, maintaining demand and prices.

Economic Outlook

• The overall economic outlook for Singapore is positive, with a strong labor market, healthy household balance sheets, and a robust currency. These factors are expected to support housing demand and prices.

Given these factors, if you are looking to purchase a resale property, 2025 might not be the best year to wait, as prices are likely to continue rising due to strong demand and limited supply. However, if you are sensitive to price increases, you might want to monitor the market closely for any potential adjustments in interest rates or changes in government policies that could impact prices.