Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The record feature that non-landed home purchases in 1Q2025 fell for buyers of all residency status other than long term locals (PRs). Home investments by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the second consecutive quarter of higher purchases by PRs.
Altogether, Savills believes the slate of new launches for the remainder of the year includes projects that are most likely to establish new benchmarks in their respective places, adding to a much faster speed of price development in the coming quarters. Savills has actually maintained its full-year price development forecast of 7% for this year.
Despite the slow sales volume, estate rates continued their upward trajectory in 1Q2025, albeit at a slower pace. Rates rose 0.8% q-o-q compared to the 2.3% growth signed up in the last quarter.
Sales momentum in the private residential market currently showed some indicators of alleviating prior to the tariffs being publicized. After a strong rebound in debut in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, corresponding with brand-new sales that fell 1.3% q-o-q.
In addition, while developers’ sales have actually reduced since April, costs have continued to ascend, states Savills. The firm associates the resilience of property rates to “the store of wealth of the baby boomers as well as rising HDB resale prices, which closed the rate gap for upgraders.”
On the other hand, non-landed residential purchases by Singaporeans fell 2.6% q-o-q to 5,699 units over the same period, noting the initial drop after 4 consecutive quarters of boost. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
At the same time, secondary sales acquired for a second consecutive quarter, falling 3.2% q-o-q. With both new sales and additional sales recording falls, overall non-landed residential sales volume receded for the very first time after three consecutive quarters of increase, mentions Savills.
The effect of US tariffs is anticipated to weigh on private residential property sales in the upcoming months, according to a May study by Savills Singapore. “As the tariff conflicts add a level of dilemma to the financial atmosphere, property buyers might practice caution and embrace a wait-and-see procedure before dedicating to their home acquisitions,” states Alan Cheong, executive director for research and consultancy at the firm. “This may carry about some weakening to brand-new sales going forward.”
Barring market disruptions or fresh cooling measures by the government, the firm thinks prices will continue to expand, sustained by fresh launches. These consist of a handful of projects slated to release in the Core Central Region, containing 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.
