Looking back, the COVID-19 pandemic had more than just an impact on Singapore’s public health. One of the most significant disruptions arising from the crisis were construction delays, which stalled HDB flat completion and created a shortage of homes. With supply unable to keep up with demand, more buyers turned to the resale market, and this applied further upward pressure on prices.
Since then, the resale HDB market has not looked back, exhibiting an unbroken upward trend that has seen prices rise consistently for 22 straight quarters as of 1Q 2025.
While this status quo is expected to continue in the near term, price growth could moderate this year. In 2Q 2024, the HDB resale price index was 187.9. This index rose to 202.8 in 2Q 2025. It was projected that this index would increase at a gentler pace of 3 – 6% year-on-year (y-o-y) in 2025. Additionally, the number of million-dollar flats rose from 419 transactions in 1H 2024 to 763 transactions in 1H 2025.
On the supply side, HDB has launched over 5,000 new Build-to-Order (BTO) flats, as well as another 5,590 Sale of Balance Flats (SBF) in February 2025’s BTO exercise. HDB plans to release a further 19,600 units this year. Not only will this incoming supply provide flat buyers with a more affordable option, but it may also put downward pressure on existing resale prices.
In 2H 2024, the average price of 4- and 5-room flats experienced a consistent overall increase, along with a notable rise in the number of transactions valued at a million dollars or more. Although this might seem intimidating, another way to understand it is that for every million-dollar flat sold, approximately 43 other flats were sold at lower prices. 2H 2024 also saw the general price growth of 4- and 5-room flats remain stable.
Table 1: 1H 2024 vs 1H 2025 HDB Resale Comparison
Source: Data.gov.sg as of 1 July 2025, ERA Research and Market Intelligence
The number of flats transacted at $1 million and above in 1H 2025 accounts for only 4.3% of all transacted flats, meaning that the other 95.7% of flats were transacted below the million-dollar mark.
However, amid these market shifts, one question remains: Are there still affordable flats available now, especially 4-room and 5-room units? The answer is “yes” – and here’s where they can be found.
Affordable 4 Room Flats
The lowest-priced 4-room flat in 1H 2025 was in Tampines, costing $300,000. Of the 4-room flats transacted in 1H-2025 (5,628 transactions), 3,555 were below the average price of $670,000, making up 63.2% of all 4-room flat transactions.
The table below shows the towns with the lowest average price transacted for a 4-room flat.
Table 2: Towns with the lowest transacted average price for a 4 Room Flat in 1H 2025
Reflecting on our findings in 1H 2024, most of the affordable 4-room flats still appear in satellite towns within non-mature estates. This is because there are more HDB estates in these areas, and homes here are usually sold at lower prices than those nearer the Central Region, due to the high demand for housing closer to the centre.
If the size of your home is a major factor in your purchase, most older flats in these areas tend to be larger, especially those built in the 80s and 90s. Woodlands and Yishun feature jumbo flats, which are essentially unsold 3- and 4-room flats combined to create larger units. These units range from 147 to 199 square metres and provide a more spacious living area. This offers buyers greater value for money. However, you might miss out on a potentially longer lease as HDB has stopped building these flats since the 90s.
In 1H 2024, we observed that most 4-room flats sold for under $650k had a remaining lease of 15 years or less. A breakdown of 4-room flats sold in 1H 2025 below the average price of $670,000 showed that the shortest lease among sold flats was 44 years, and most of these flats had between 36 and 45 years remaining.
Chart 1: Breakdown of 4-room resale HDB flats sold for under $669,000 in 2H 2024 by flat age
Affordable 5 Room Flats
Moving on to affordable 5-room flats, data collected showed that Jurong East had the lowest transacted price for a 5-room flat in 1H 2025, with a price tag of $445,000 ($398 psf). Although this may seem appealing at first glance, the remaining lease on this unit was just over 50 years, suggesting that its age may have influenced the price.
The total number of transactions below the average price of a 5-room flat ($775,000) was 1,836 transactions. This accounts for 61.1% of all 5-room transactions (3,005 transactions) in the first half of 2025, which essentially means that the majority of 5-room flats transacted in this period are considered “affordable”. Below are the towns offering the lowest prices for 5-room homes:
Table 3: Towns with the lowest transacted average price for a 5 Room Flat in 1H 2025
Source: Data.gov.sg as of 1 July 2025, ERA Research and Market Intelligence *Rounded to the nearest thousand[/caption]
Again, we observe that the top 5 towns with the lowest average transacted price of 5-room units are in non-mature estates. This may be because, generally, estates like Woodlands and Sembawang are newer and have more land available. The high land supply keeps the prices of these units lower.
Newer estates often lack amenities, requiring residents to travel further for essential necessities. This can be inconvenient, especially for older residents. Consequently, it discourages buyers from opting for more accessible areas with better amenities, which are usually found in mature estates.
Unlike non-mature estates, mature estates like Queenstown and Ang Mo Kio provide accessibility and a wide range of amenities that are usually within 10 minutes of a resident’s home, which is why the demand for these homes is so high.
Although these affordable flats are generally located further from the Central Region, their lease prices are usually higher compared to those in mature estates or closer to the Central Region. Flats in non-mature estates are newer, allowing buyers to see the long-term value of their purchase as more amenities and transport facilities are added over time. Additionally, towns such as Jurong West and Sembawang typically offer larger flats compared to other newer estates, making them appealing to families seeking spacious yet affordable options.
Chart 2: Breakdown of 5-room resale HDB flats sold for under $775,000 in 2H 2024 by flat age
Ultimately, this means that flats are largely still affordable for Singaporeans.
If you are currently searching for an affordable resale flat, starting with non-mature estates is a good first step. With fewer amenities and developments, there is a decent supply of flats with lower demand, which could be priced within your budget.
However, if location is fairly important for your home, there are several flats nearer the central area within older estates that have fewer years remaining on their leases.
