Is the HDB market currently experiencing an oversupply situation

The HDB market in Singapore is not currently in an oversupply situation. Here are some key points that support this:

- The number of HDB flats reaching their Minimum Occupation Period (MOP) in 2025 is expected to be the lowest in 11 years, at just 6,974 units. This limited supply of resale HDB flats is likely to keep resale prices firm and maintain demand pressure.

- Despite the HDB planning to launch over 50,000 Build-To-Order (BTO) flats between 2025 and 2027, these new launches do not immediately alleviate the current shortage in the resale market. The construction of these BTO flats takes time, typically 3-5 years, which means the short-term supply of resale flats will remain constrained.

- The demand for HDB resale flats remains strong, driven by factors such as steady GDP growth and employment data, which encourages more individuals and families to seek new housing. This strong demand, combined with the limited supply, is expected to continue driving up resale prices.

Therefore, the current scenario indicates a balance tilted towards demand rather than oversupply in the HDB market.