(Bloomberg) -- Singapore home prices grew at the slowest pace in more than two years in the fourth quarter of 2022, adding to signs that the property boom is starting to moderate.

Private property values rose 0.4%, Urban Redevelopment Authority Figures showed Friday. That compares with the preliminary estimate of 0.2%, and marks the weakest growth since the second quarter of 2020. For the full year, prices climbed 8.6%. 

The real estate slowdown comes on the back of rising borrowing costs, fresh cooling measures, and a tight supply of private homes that caused sales to drop to a 14-year low in December. Still, Singapore’s property market appears more resilient than the likes of Canada and Sweden, which have been harmed by more aggressive rate hikes.

The latest housing curbs announced in September led to a “knee-jerk effect on prices and volumes in the fourth quarter, and the market will need time to adjust,” said Wong Xian Yang, Cushman & Wakefield Plc’s Singapore head of research. The market took a similar breather at the start of 2022, after earlier tightening measures were introduced. 

While higher interest rates and economic uncertainties have resulted in home prices taking a hit globally, values in Singapore are still increasing due to the tight supply and healthy job growth, according to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

Private rents are also expected to rise at a slower pace this year as the supply of new homes picks up, easing a crunch for tenants. 

Rents for private residential properties jumped 30% in 2022, accelerating from a 10% increase in 2021, the URA said. Housing affordability and living costs are some of the top concerns for Singaporeans, according to a poll by YouGov Plc.

“Despite the influx of new supply in the form of development launches and units completing, more is needed to meet demand,” Nicholas Keong, head of private office at brokerage Knight Frank Singapore, said in a note. He forecasts price growth of 5% this year, “despite the current economic climate and potential challenges ahead underpinned by low supply, and strong underlying demand.”

(Updates with analyst comment in the fifth paragraph)

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