Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales drive in the private non commercial market already suggested some signs of reducing prior to the tolls being released. After a strong revive in kick off in 4Q2024, brand-new launches regulated 8.4% q-o-q in 1Q2025, corresponding with new sales that dropped 1.3% q-o-q.
The record highlights that non-landed home purchases in 1Q2025 slipped for buyers of all residency status except for long-term residents (PRs). Home purchases by PRs climbed 2.1% q-o-q to 931 units in 1Q2025. This is the second consecutive quarter of higher acquisitions by PRs.
At the same time, additional sales contracted for a 2nd successive quarter, falling 3.2% q-o-q. With both brand-new sales and second sales recording drops, overall non-landed residential sales volume declined for the very first time after 3 successive quarters of increase, mentions Savills.
Altogether, Savills thinks the slate of brand-new launches for the remainder of the year consists of projects that are likely to set new benchmarks in their respective places, contributing to a much faster pace of price growth in the coming quarters. Savills has kept its full-year cost development projection of 7% for this year.
Additionally, while developers’ sales have slowed ever since April, rates have remained to increase, says Savills. The company associates the durability of property prices to “the store of wealth of the baby boomers in addition to increasing HDB resale rates, that closed the price gap for upgraders.”
Barring market disturbances or fresh cooling procedures by the government, the firm believes costs will continue 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.
Meanwhile, non-landed residence acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the 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.
In spite of the slow sales volume, property costs proceeded their upward trajectory in 1Q2025, albeit at a slower pace. Rates climbed 0.8% q-o-q contrasted to the 2.3% growth signed up in the past quarter.
The effect of United States tolls is expected to weigh on private house sales in the upcoming months, according to a May research report by Savills Singapore. “As the tariff conflicts include a level of dilemma to the financial atmosphere, property buyers might practice caution and take on a wait-and-see method before committing to their home acquisitions,” states Alan Cheong, executive administrator for research and consultancy at the firm. “This may deliver about some reducing to brand-new sales moving forward.”
