Singapore's private residential property prices experienced their largest increase in nearly two years, while rents also climbed, indicating that the market remains robust despite a recent decline in transactions.

An index tracking private residential properties jumped 1.4% during the three months ending September 30, based on final data published Friday by the Urban Redevelopment Authority. This figure aligned with the earlier projection and surpassed the 0.5% gain recorded in the second quarter. Rents for private homes increased 1.3% compared to the prior three-month period, marking the strongest rise in over three years.

Affluent locals and foreign migrants have fueled demand in Singapore's real estate sector, positioning it among the priciest globally. Transactions have slowed in recent months, largely due to a shortage of new developments, though analysts are monitoring whether confidence can hold up amid a recent rise in interest rates and more sluggish economic growth.