Singapore’s home prices chalked up their biggest gains in over seven years, rising 4.8 per cent in the January to March period from the previous quarter led by the luxury segment, officials figures showed on Friday.

The Urban Redevelopment Authority (URA), said its price index for private homes rose to 136.5 points in the first quarter from 130.2 points in the Oct-Dec period last year. This is a 16.5 per cent increase from the first quarter a year ago.

Prices for private apartments in the republic’s prime central district rose at a faster pace during the first quarter, climbing 5.5 per cent compared to the more modest 2 per cent gain chalked up by flats in the rest of the island republic.

Private home rents also grew at a faster pace between January and March, growing 7.6 per cent compared to 5.3 per cent in the last three months of 2006. Singapore’s property market recovery gained momentum after the government introduced measures in July 2005 to ease real-estate financing rules and foreign investment.

Last month, CapitaLand and its Hong Kong partner Sun Hung Kai Properties said they had set a new pricing benchmark for Singapore residential property by selling some units in their downtown development for more than $4,000 (US$2,644) per square foot.

The URA said office space rents grew 10.4 per cent in January-March, moderating slightly from 11.6 per cent in the last quarter of 2006.