Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales momentum in the exclusive home market already suggested some indications of relieving before the tolls being released. After a solid rebound in kick off in 4Q2024, brand-new start moderated 8.4% q-o-q in 1Q2025, corresponding with brand-new sales that dropped 1.3% q-o-q.
At the same time, additional sales acquired for a 2nd successive quarter, falling 3.2% q-o-q. With both brand-new sales and secondary sales recording falls, complete non-landed residential sales volume receded for the first time after 3 successive quarters of raise, indicates Savills.
Additionally, while property developers’ sales have slowed ever since April, rates have continued to increase, says Savills. The firm connects the strength of property rates to “the store of assets of the baby boomers as well as increasing HDB resale prices, which closed the rate gap for upgraders.”
Regardless of the slower sales quantity, real estate costs proceeded their higher trajectory in 1Q2025, albeit at a slower pace. Costs rose 0.8% q-o-q contrasted to the 2.3% growth registered in the last quarter.
On the other hand, non-landed housing purchases by Singaporeans dropped 2.6% q-o-q to 5,699 units over the very same period, noting the first drop after four consecutive quarters of rise. Acquisitions by immigrants dropped 17.6% q-o-q to 70 units in 1Q2025.
The influence of US tariffs is anticipated to balance on private residential property sales in the coming months, according to a May study by Savills Singapore. “As the toll wars include a degree of unpredictability to the economic environment, property buyers may exercise care and embrace a wait-and-see procedure prior to committing to their home purchases,” states Alan Cheong, executive supervisor for research and consultancy at the firm. “This might deliver about some reducing to new sales going forward.”
Barring market disruptions or fresh cooling procedures by the government, the company thinks prices will remain to expand, sustained 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 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.
The record feature that non-landed home acquisitions in 1Q2025 fell for buyers of all residency status except for long-term locals (PRs). Home acquisitions by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd successive quarter of higher sales by PRs.
Altogether, Savills believes the slate of new launches for the rest of the year includes projects that are most likely to establish new benchmarks in their respective locations, contributing to a faster speed of cost growth in the coming quarters. Savills has kept its full-year rate development projection of 7% for this year.
