Have you considered enough before setting your mind on buying a resale flat?

Singaporeans buy a resale flat for a variety of reasons.

It could be due to family or personal circumstances, or preferences for certain locations or unit layouts. It could also be simply due to the fact that you are not eligible for BTO flats.

But the resale prices are rather high now, and home purchase is a huge financial commitment. Then, how?

History has shown that the property market moves in cycles, so housing prices won’t go up indefinitely. Especially in light of the current global economic uncertainties, it’s better to be prudent than sorry.

So before you make this huge decision, make sure you have the latest information as part of your research.

Here are some updates you need to know before buying a resale flat, in case they get missed out in the flurry of daily news.

More resale flats entering the market in the next 3 years

The current resale prices are high, partly due to a tighter supply of flats reaching the Minimum Occupation Period (MOP) in 2025, as a result of Covid-19 delays.

However, this trend is unlikely to continue as more flats are expected to enter the market in the next three years.

There are early signs of moderation in price growth in the resale market, based on the recent Resale Price Index. Comparing the first quarter in 2025 to the last quarter in 2024, the prices grew by 1.6 per cent in Q1 2025 versus 2.6 per cent in Q4 2024.

Looking ahead, the number of new flats reaching the MOP will increase from around 8,000 in 2025 to 19,500 in 2028. This means the supply of resale flats is expected to more than double in the next three years.

This increase, along with the ramp up of new flat supply and cooling measures implemented, is likely to temper the rise in resale flat prices.

This means homebuyers have more options, in terms of location, unit layout and price. More likely to find your perfect home, maybe?

Is BTO waiting time the reason why you look at resale flats?

Is waiting time a concern for you? Fret not.

Out of 19,600 new flats slated to launch this year, 3,800 have a waiting time of two plus years.

Overall, 12,000 of such flats will be launched from 2025 to 2027. This is more than the total number of flats with shorter waiting times launched in the past five years combined.

Upcoming BTO launch in July 2025

In July, one can also look forward to the launch of about 5,400 BTO flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh and Woodlands. This includes a project in Simei – part of Tampines town – which is a first in 10 years.

3,000 balance flats will also be launched in July. Together with the first sale of balance exercise in February, the combined supply of 8,500 balance flats in 2025 will be the largest annual supply since 2017.

Maybe you would be able to find a unit that checks your boxes from this BTO launch?

With more BTO flats available, the chances of first-timer applicants to receive an invite to choose a flat will be higher. Overall application rate for first-timer families was 1.5 times in the February 2025 BTO exercise.

For second-timer applicants, you will have a better chance in July’s launch because the quota for second-timer applicants will increase by five per cent, since there’s a decline in first-timer applications.

Make sure you check the application rates, which are updated regularly on the HDB website, when applying for BTO or Sale of Balance flats. The application rates are also broken down to groups such as first-timer families, first-timer singles, and second-timer families. This will help you get a better sense of your chances in getting a flat for different projects.

Be prudent

With more supply of flats in the next few years, one can expect a more balanced supply and demand for HDB flats.

On the demand side, measures are also implemented to discourage buyers from stretching beyond their means. After all, buying a flat is a huge financial decision.

The loan-to-value (LTV) limit for HDB loans was reduced from 80 per cent to 75 per cent last August to encourage cautious borrowing.

The LTV limit is the maximum one can borrow from HDB or financial institutions to fund their housing purchase. The reduction made in August 2024 was the third time LTV has been lowered in the last four years, in a bid to stabilise the resale market.

That said, families who wish to buy their first homes are further supported with the Enhanced CPF Housing Grant (EHG). Under this grant scheme, first-timer families applying for BTO flats can receive up to S$120,000 in grants, while those purchasing resale flats can receive up to S$230,000 in grants.

Speaking to two resale flat Millennial owners, affordability was top of mind for both but grants and the ability to use CPF to pay the remainders helped give them a peace of mind after buying their flats.

“When my fiancee and I were looking at buying a resale flat in 2023, one concern we had was affordability. Thankfully, we managed to find a place close to our parents, which qualified us for the HDB Proximity Grant, and also got a fair bit of subsidy from the HDB Resale Grant for families. Also, our monthly housing loan payments for the remainder is covered by our CPF with no cash outlay. This really helped give us peace of mind as new homeowners and we’re able to focus on settling in and preparing to start a family.”

So, think carefully and consider all options before making your property purchase.

This branded article is brought to you by the Ministry of National Development.

Top image by Alan Wee/Google Photos