Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales momentum in the exclusive non commercial market already indicated some indications of alleviating before the tolls being publicized. After a strong revive in launches in 4Q2024, brand-new launches regulated 8.4% q-o-q in 1Q2025, corresponding with new sales that fell 1.3% q-o-q.
The impact of US tolls is expected to balance on private residential property sales in the upcoming months, according to a May research statement by Savills Singapore. “As the tariff struggles add a degree of dilemma to the financial setting, buyers might practice caution and take on a wait-and-see approach prior to committing to their home acquisitions,” claims Alan Cheong, executive director for research and consultancy at the firm. “This might carry about some weakening to new sales going forward.”
In addition, whilst developers’ sales have actually reduced ever since April, prices have continued to rise, says Savills. The company attributes the durability of property rates to “the store of wealth of the baby boomers along with climbing HDB resale costs, that closed the rate space for upgraders.”
At the same time, secondary sales acquired for a second successive quarter, dropping 3.2% q-o-q. With both brand-new sales and secondary sales recording falls, complete non-landed residential sales volume declined for the first time after three successive quarters of raise, indicates Savills.
Despite the weaker sales quantity, estate prices 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 last quarter.
Barring market disturbances or fresh cooling measures by the government, the firm thinks rates will remain to expand, supported by fresh launches. These consist of a handful of projects slated to kick off 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 include 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 thinks the slate of new release for the remainder of the year consists of projects that are likely to set brand-new benchmarks in their respective locations, contributing to a much faster rate of price development in the coming quarters. Savills has maintained its full-year price development projection of 7% for this year.
The report emphasize that non-landed home purchases in 1Q2025 slipped for buyers of all residency status other than permanent citizens (PRs). Home investments by PRs climbed 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd consecutive quarter of higher purchasings by PRs.
Meanwhile, non-landed housing purchases by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same period, noting the very first drop after four consecutive quarters of growth. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
