(Bloomberg) -- Private home prices in Singapore are expected to grow by up to 3% this year, according to research provider OrangeTree.

While prices may “flatline” to start the year due to new cooling measures, rising interest rates and inflation, the overall supply of new homes is projected to drop 17%-20% from 2019-2020 numbers.

As fewer projects will be launched, new home sales may slip and some buyers may turn to the secondary market driving prices up.

Private home prices increased 5% in the fourth quarter, with rentals seeing a gain of 2.6%, data reported by Urban Development Authority show.

Singapore’s rental market is seen recovering as hiring in healthcare, technology, logistics, transportation and digital-related sectors will continue to attract ex-pats and permanent residents. The industry watcher expects the rents to rise faster at between 8%-11% this year.

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