Singapore home prices grew at a slower pace last quarter and rents fell, as the city-state’s property boom began to lose steam.

Prices for private residences rose 1.4% from the previous three months, according to final figures released by the Urban Redevelopment Authority on Friday. That compares with a preliminary estimate of 1.5% and a 2.8% increase in the last quarter of 2023.

Private rents slid 1.9%. That comes after a 2.1% drop in the previous quarter, the first decline in more than three years.

Home prices have climbed for three straight quarters even as high interest rates and government cooling measures hurt demand, particularly from foreign buyers in the luxury market.

Some analysts have called time on the price rally, with Morgan Stanley predicting a 3% drop in private home valuations in 2024. Bloomberg Intelligence expects prices to remain flat this year with risks of a decline.

Authorities have been pointing to the slowdown in price increases to allay concerns about housing affordability ahead of a general election that has to be held by 2025.

In a sign of waning sentiment, a private residential project sold just three out of 59 of its units put on the market last weekend. Meanwhile, prices at high-end condominiums are being slashed. A firm linked to major developer City Developments Ltd sold 65 luxury units at a project on the island enclave of Sentosa after offering discounts of over 40%.

  - Bloomberg