Is the HDB resale market currently experiencing an oversupply situation?

The HDB resale 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 contributes to the constrained market conditions.

- Despite the government's plans to launch a significant number of Build-To-Order (BTO) flats between 2025 and 2027, these new launches do not immediately alleviate the current shortage in the resale market. BTO flats take several years to complete, which means the short-term supply of resale flats remains constrained.

- The demand for HDB resale flats remains robust, driven by strong broad-based demand and some supply tightness in the market. This demand, combined with the limited supply, is expected to keep resale prices firm.

- Analysts forecast that HDB resale prices will continue to rise, albeit at a slower pace than in 2024, with predictions ranging from 3.5% to 8% for 2025. This indicates that the market is still experiencing pressure from demand outpacing supply.

Overall, the current dynamics suggest that the HDB resale market is characterized by a shortage rather than an oversupply of units.