Singapore, 03 Apr 2023 The HDB resale market is seeing signs of price resistance setting in, said analysts on Monday (Apr 3), as flash estimates showed that resale prices grew at a slower pace in the first quarter of 2023.
The 0.9 per cent increase is the smallest rise in the last 10 quarters.
The Housing and Development Board released data on Monday that showed the Resale Price Index (RPI) rising 0.9 per cent to 173.4, slower than the 2.3 per cent increase in the fourth quarter of 2022.
Ms Christine Sun, senior vice president of research & analytics at OrangeTee & Tie, said price increases may have slowed as smaller flats made up a higher proportion of sales last quarter, climbing from 69.7 per cent to 71.5 per cent in 2023. Small flats usually fetch lower prices.
"As housing affordability takes centre stage, small resale flats will continue to find favour with buyers," said Ms Sun. "Rising interest rates, inflationary pressures and high resale prices have crimped buyers’ purchasing power."
Prices will continue to moderate over the year, the analysts predicted. Ms Sun said resale prices will continue to go up but at a slower pace of 5 per cent to 8 per cent, compared to 10.4 per cent in 2022 and 12.7 per cent in 2021.