Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Barring market interruptions or fresh cooling procedures by the government, the company thinks rates will continue to grow, supported by fresh launches. These consist of a handful of projects slated to kick off in the Core Central Area, consisting of the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large-scale upcoming projects involve the 937-unit One Marina Gardens in the Rest of Central Region and the 941-unit Springleaf Residence in the Outside Central Region.
The record feature that non-landed home acquisitions in 1Q2025 fell for buyers of all residency status except for long-term homeowners (PRs). Home investments by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd successive quarter of higher purchases by PRs.
The impression of US tariffs is anticipated to weigh on private home sales in the forthcoming months, according to a May research study statement by Savills Singapore. “As the toll struggles add a level of unpredictability to the economic atmosphere, property buyers may practice caution and adopt a wait-and-see process before devoting to their home acquisitions,” says Alan Cheong, executive supervisor for research and consultancy at the firm. “This might bring about some reducing to new sales going forward.”
Additionally, whilst property developers’ sales have slowed down ever since April, costs have remained to increase, claims Savills. The company connects the durability of property rates to “the store of assets of the baby boomers in addition to climbing HDB resale rates, which closed the cost space for upgraders.”
Despite the weaker sales volume, real estate costs continued their upward trajectory in 1Q2025, albeit at a slower pace. Costs climbed 0.8% q-o-q contrasted to the 2.3% growth signed up in the previous quarter.
Meanwhile, non-landed housing acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same time frame, marking the very first slip after four consecutive quarters of rise. Purchases by immigrants dropped 17.6% q-o-q to 70 units in 1Q2025.
At the same time, additional sales contracted for a 2nd consecutive quarter, dropping 3.2% q-o-q. With both new sales and second sales recording drops, total non-landed residential sales volume dropped for the very first time after 3 consecutive quarters of surge, notes Savills.
Sales force in the private residential market already suggested some indications of reducing before the tariffs being announced. After a strong rebound in debut in 4Q2024, new launches regulated 8.4% q-o-q in 1Q2025, matching with brand-new sales that dropped 1.3% q-o-q.
Altogether, Savills thinks the slate of new launches for the rest of the year consists of projects that are most likely to establish brand-new benchmarks in their respective places, contributing to a much faster speed of price development in the coming quarters. Savills has maintained its full-year price growth forecast of 7% for this year.
