Singapore private home prices rose more than initially estimated in the first quarter, in a sign of continued demand in the market despite expectations of headwinds.

An index of private residential prices rose 0.8% from the previous three months, the Urban Redevelopment Authority said Friday. That compares with an initial estimate of 0.6% and a 2.3% jump in the last quarter of 2024.

Another closely watched measure, an index of private rents, rose by 0.4%, after staying flat in the previous quarter.

Housing affordability and cost of living have emerged as major issues during election campaigning in the city-state, ahead of polls that are being held on May 3. Voter concerns especially around the prices of second-hand public housing have been a key challenge for the long-ruling People’s Action Party.

Singapore’s private residential market has been buoyed in recent months by declining borrowing costs and a desire among some to profit from flipping new apartments in the suburbs. Still, soft spots have emerged, including slower sales in the second-hand market and limited demand among locals for more expensive city center homes.