Signs of price resistance are emerging in the HDB resale market as flash estimates show a slowdown in resale price growth in the first quarter of 2023. the 0.9 per cent increase was the smallest in the past 10 quarters.

Data released by the Housing and Development Board on Monday showed that the Resale Price Index (RPI) rose 0.9 per cent to 173.4, down from a 2.3 per cent increase in the fourth quarter of 2022.

Resale volumes for the year to March 30 were 6,880, 1 per cent higher than the 6,810 resales recorded in the same period last year.

Ms Christine Sun, senior vice president of research and analysis at OrangeTee & Tie, said price increases may have slowed as smaller flats accounted for a higher proportion of sales in the last quarter, climbing from 69.7 per cent to 71.5 per cent by 2023. Smaller flats typically command lower prices.

"As housing affordability comes into focus, smaller resale flats will continue to be popular with buyers," Ms Sun said. "Rising interest rates, inflationary pressures and high resale prices have weakened buyers' purchasing power."

Analysts predict that prices will continue to be moderate this year. Resale prices will continue to rise, but at a slower rate of 5 to 8 per cent, compared with 10.4 per cent in 2022 and 12.7 per cent in 2021, Ms Sun said.