(Bloomberg) — Singapore house prices rose more than initially estimated in the third quarter, underscoring the market’s resilience to rising interest rates.

Private property values ​​rose 3.8%, more than the forecast of 3.4%, according to final data released by the Urban Redevelopment Authority on Friday. Prices jumped 3.5% in the second quarter.

This rise is in stark contrast to sliding prices in the hot Canadian and US markets, where buyers have been drawn back by higher borrowing costs. Singapore is also outperforming other markets in the Asia-Pacific region, where lightning is showing early signs of cooling.

Singapore’s rental market has also grown. Rents for private residential property increased by 8.6% in the third quarter, up from 6.7% in the previous three months.

The city-state’s residential property prices will continue to rise gradually over the next 12 months even as rates rise, due to low real estate supply and modest improvements in household incomes, Moody’s Investors Service analysts wrote in a note Tuesday.

Singapore’s annual home price growth is expected to slow slightly to 7% in 2023, compared with 9% this year, according to Alan Cheong, executive director of research at Savills Plc.

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