Government housing plays a crucial role in Singapore's housing landscape, catering to the majority of national residential needs. Recent data indicates a 1.7% quarter-on-quarter increase in resale prices for HDB flats, marking the highest quarterly growth since late 2022. Concurrently, transaction volumes have also grown by 5.5% year-on-year, indicating robust consumer demand. The HDB market is expected to maintain stability in the second half of the year, with prices likely to plateau compared to the first half, driven by both supply constraints and increased consumer purchasing power.

While overall price indices have shown some increase, the pace has notably slowed down. Private residential prices in Singapore saw a modest 1.1% quarter-on-quarter rise, slightly lower than the previous quarter's increase, suggesting reduced acceptance of high-priced properties in the market. High interest rates and economic uncertainties have heightened buyer caution, with full-year price increases for private residences expected to remain between 3% to 4%. Residents are increasingly making cautious and rational choices in real estate investments.

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The government has implemented proactive measures to regulate the market, including raising Additional Buyer's Stamp Duty on residential properties to curb overheating. This policy has significantly impacted the market, contributing to a record low in new private residential sales volumes in the first half of this year. However, amid a softening private residential market, resale private properties have shown relatively strong performance, with both transaction volumes and prices seeing increases, highlighting a preference for mid to low-priced, second-hand properties.

Meanwhile, Singapore's landed residential market has maintained stable transaction activity, particularly with active transactions in premium landed homes seeing an 8% quarter-on-quarter increase in total transaction value. This reflects ongoing attractiveness of high-end residential properties in specific areas, continuing to appeal to buyers.

On the office rental front, uncertainties in the international economic outlook and resistance from some tenants against high rents are expected to lead to a slowdown or even stagnation in office rental increases in the second half of this year. Rental stability serves as a crucial market signal for both commercial tenants and investors alike.