Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales force in the exclusive non commercial market currently suggested some signs of reducing prior to the tariffs being released. After a solid rebound in kick off in 4Q2024, new launches moderated 8.4% q-o-q in 1Q2025, matching with new sales that dropped 1.3% q-o-q.
Barring market interruptions or fresh cooling procedures by the government, the firm thinks prices will remain to expand, sustained by fresh launches. These include a handful of projects slated to start in the Core Central Region, consisting of the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large future projects consist of the 937-unit One Marina Gardens in the Rest of Central Region and the 941-unit Springleaf Residence in the Outside Central Region.
Despite the weaker sales quantity, property rates continued their upward trajectory in 1Q2025, albeit at a slower pace. Rates increased 0.8% q-o-q compared to the 2.3% growth registered in the previous quarter.
The record highlights that non-landed home acquisitions in 1Q2025 dropped for buyers of all residency status other than long-term homeowners (PRs). Home purchases by PRs climbed 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd consecutive quarter of higher sales by PRs.
Altogether, Savills thinks 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, contributing to a faster speed of cost growth in the coming quarters. Savills has actually maintained its full-year cost development forecast of 7% for this year.
Additionally, whilst property developers’ sales have actually slowed down since April, prices have continued to rise, states Savills. The firm attributes the resilience of property rates to “the store of assets of the baby boomers as well as rising HDB resale rates, that closed the cost gap for upgraders.”
At the same time, secondary sales contracted for a second successive quarter, dropping 3.2% q-o-q. With both new sales and second sales recording falls, total non-landed residential sales volume dropped for the first time after three consecutive quarters of surge, notes Savills.
Meanwhile, non-landed non commercial acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same duration, noting the initial slip after 4 consecutive quarters of growth. Purchases by immigrants dropped 17.6% q-o-q to 70 units in 1Q2025.
The impact of United States tolls is expected to weigh on private property sales in the forthcoming months, according to a May research statement by Savills Singapore. “As the toll conflicts add a degree of unpredictability to the economic environment, property buyers may warm up caution and adopt a wait-and-see method prior to devoting to their home purchases,” states Alan Cheong, executive supervisor for research and consultancy at the firm. “This might carry about some reducing to brand-new sales going forward.”
