Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The report highlights that non-landed home purchases in 1Q2025 dropped for buyers of all residency status besides long term homeowners (PRs). Home investments by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd successive quarter of higher purchases by PRs.
At the same time, additional sales contracted for a second consecutive quarter, falling 3.2% q-o-q. With both brand-new sales and additional sales recording drops, complete non-landed residential sales volume dropped for the first time after 3 consecutive quarters of raise, indicates Savills.
Barring market disturbances or fresh cooling actions by the government, the company thinks prices will continue to expand, supported by fresh launches. These include a handful of projects slated to start in the Core Central Area, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other massive 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.
Altogether, Savills believes the slate of brand-new launches for the rest of the year consists of projects that are likely to establish new benchmarks in their respective places, adding to a faster pace of rate growth in the coming quarters. Savills has actually preserved its full-year price development forecast of 7% for this year.
Sales force in the private residential market already indicated some indicators of easing before the tariffs being released. After a solid revive in debut in 4Q2024, new start regulated 8.4% q-o-q in 1Q2025, corresponding with new sales that fell 1.3% q-o-q.
On the other hand, non-landed residence acquisitions by Singaporeans dropped 2.6% q-o-q to 5,699 units over the same period, marking the initial drop after four consecutive quarters of rise. Purchases by immigrants dropped 17.6% q-o-q to 70 units in 1Q2025.
Additionally, while developers’ sales have actually slowed ever since April, prices have actually continued to increase, claims Savills. The company attributes the strength of property rates to “the store of assets of the baby boomers in addition to rising HDB resale costs, which closed the price gap for upgraders.”
The effect of US tariffs is expected to balance on private house sales in the coming months, according to a May research study by Savills Singapore. “As the toll conflicts include a degree of uncertainty to the financial atmosphere, buyers might warm up care and take on a wait-and-see method prior to committing to their home purchases,” states Alan Cheong, executive administrator for research and consultancy at the firm. “This might deliver about some reducing to brand-new sales going forward.”
Despite the slower sales quantity, property costs continued their upward trajectory in 1Q2025, albeit at a slower pace. Prices climbed 0.8% q-o-q contrasted to the 2.3% growth signed up in the past quarter.
