How BTO & SBF Exercises Impacted the HDB Resale Market in February

The HDB resale market experienced a modest slowdown in February, influenced largely by a surge in new flat supply from the latest build-to-order (BTO) and sale of balance flats (SBF) exercises. With thousands of new units on offer, many buyers began weighing their options between brand-new flats and established resale properties. Here’s a deeper dive into what happened, why it matters, and what it might mean for future market trends.

A Shift in Buyer Interest

In February, the HDB launched a total of 10,622 flats under BTO and SBF exercises. This significant number – which included 40% of the 5,590 SBF flats being completed units – clearly provided prospective buyers with an attractive alternative to the resale market. With eight in 10 BTO flats having waiting times of four years or less, many buyers found themselves balancing the benefits of purchasing a new flat against the immediate availability of a resale property.

Resale Market Trends: Volume and Price Movement

Despite the influx of new flats, the resale market remained active. However, the total number of resale transactions slipped by 9.5% from January to February – with 2,102 HDB flats transacted in February, down from 2,322 units in the previous month. On a year-on-year basis, the decline was marginal at 1%, indicating a relatively stable market despite the temporary pull towards new units.

Interestingly, while the number of transactions dipped, the average resale price actually rose by 1.2% month-on-month – moving from $636,265 in January to $644,050 in February. Compared with the same period last year, the average resale price saw a 10% increase from $585,636. This steady price appreciation suggests that the resilience of the resale market is driven by robust buyer demand, particularly for larger and more sought-after flats.

Flat Type Performance: Mature vs Non-Mature Estates

Digging deeper into the data reveals nuanced trends across different flat types and estate classifications:

• Mature Towns:The average price for 5-room flats in mature estates surged by 4.6% month-on-month to reach $926,547. Meanwhile, 3-room flats experienced a 3.6% increase, positioning them as an appealing option for first-time buyers.

• Non-Mature Towns:In these areas, executive flats witnessed a steeper price growth at 2% month-on-month. Notably, the average price for 5-room resale flats in non-mature estates finally broke the $700,000 barrier, reflecting increased buyer interest despite stronger competition in the new flat segment.

The Rise of Million-Dollar Resale Flats

A remarkable trend in February was the record-breaking number of resale flats that fetched at least $1 million. With 121 million-dollar transactions – a slight rise from the 119 units in January – this figure surpassed previous monthly records and underscored the growing demand for premium HDB flats. Among these, 5-room flats dominated, with a new monthly high of 51 such units being sold for over a million dollars. Areas like Bukit Merah, Toa Payoh, Queenstown, and Kallang Whampoa led this trend, indicating strong buyer confidence in prime locations.

Table 2: Top 10 HDB resale flats sold in February 2025 by Transacted Price

Town	Type	Street	Storey range	Floor area (SQ M)	Lease start date	Resale price	PSF ($)
TOA PAYOH	5 ROOM	LOR 1A TOA PAYOH	31 TO 33	117	2012	$1,558,000	$1,237
CENTRAL AREA	5 ROOM	CANTONMENT RD	43 TO 45	106	2011	$1,550,000	$1,358
TOA PAYOH	5 ROOM	LOR 1A TOA PAYOH	34 TO 36	117	2012	$1,500,000	$1,191
ANG MO KIO	5 ROOM	ANG MO KIO ST 52	28 TO 30	119	2011	$1,480,000	$1,155
BUKIT TIMAH	EXECUTIVE	TOH YI DR	10 TO 12	146	1988	$1,460,000	$929
QUEENSTOWN	5 ROOM	DAWSON RD	25 TO 27	107	2020	$1,455,000	$1,263
BISHAN	5 ROOM	BISHAN ST 24	16 TO 18	120	2011	$1,440,000	$1,115
BUKIT MERAH	5 ROOM	BOON TIONG RD	10 TO 12	112	2016	$1,420,000	$1,178
KALLANG/WHAMPOA	5 ROOM	BOON KENG RD	28 TO 30	107	2011	$1,388,880	$1,206
CLEMENTI	5 ROOM	CLEMENTI AVE 4	37 TO 39	113	2017	$1,370,000	$1,126

What’s Next for the HDB Resale Market?

While the recent BTO and SBF launches have introduced fresh dynamics into the property market, the sustained resilience of resale prices and the continued appetite for premium units suggest that the HDB resale market is far from stagnant. Buyers are now more strategically considering their options, with the market segmentation between new and resale flats becoming even more pronounced.

For prospective buyers, this means weighing the benefits of lower waiting times and potentially more modern designs in new launches against the established location advantages and immediate occupancy offered by resale flats. Sellers, on the other hand, might need to adjust their expectations given the shifting market dynamics.

Final Thoughts

February’s data points to an evolving property landscape where new supply channels like BTO and SBF exercises are influencing buyer behavior in the resale segment. The slight drop in transaction volume, coupled with steady price growth, underscores a market that remains dynamic and resilient. As the competition intensifies—particularly in popular segments like 5-room flats—both buyers and sellers will have to navigate a more complex decision-making process, one that balances new opportunities with established market trends.

For more detailed data and insights, be sure to check out the full report on PropNex’s website.

Source: PropNex Research and data.gov.sg

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