Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales force in the private residential market currently showed some indicators of alleviating prior to the tolls being declared. After a solid revive in launches in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, matching with new sales that fell 1.3% q-o-q.
Additionally, while property developers’ sales have actually slowed since April, prices have continued to ascend, states Savills. The company attributes the durability of property prices to “the store of wealth of the baby boomers along with increasing HDB resale costs, which shut the cost void for upgraders.”
Altogether, Savills believes the slate of brand-new release for the rest of the year consists of projects that are likely to establish brand-new benchmarks in their respective places, adding to a much faster rate of price growth in the coming quarters. Savills has maintained its full-year price growth projection of 7% for this year.
Meanwhile, non-landed non commercial purchases by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same period, noting the initial slip after 4 consecutive quarters of growth. Buys by foreigners dropped 17.6% q-o-q to 70 units in 1Q2025.
Regardless of the weaker sales volume, property rates proceeded their upward trajectory in 1Q2025, albeit at a slower pace. Prices climbed 0.8% q-o-q compared to the 2.3% growth registered in the last quarter.
Barring market disruptions or fresh cooling procedures by the government, the firm believes prices will remain to expand, supported by fresh launches. These include a handful of projects slated to release in the Core Central Area, consisting of the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large future 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.
The impression of US tolls is expected to weigh on private property sales in the forthcoming months, according to a May study report by Savills Singapore. “As the tariff conflicts include a degree of dilemma to the economic environment, property buyers may practice care and take on a wait-and-see approach prior to devoting to their home purchases,” states Alan Cheong, executive administrator for research and consultancy at the firm. “This might bring about some decreasing to new sales going forward.”
The report emphasize that non-landed home purchases in 1Q2025 dropped for buyers of all residency status other than long-term homeowners (PRs). Home purchases by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd successive quarter of higher sales by PRs.
At the same time, secondary sales acquired for a 2nd successive quarter, dropping 3.2% q-o-q. With both brand-new sales and second sales recording falls, total non-landed residential sales volume dropped for the very first time after three successive quarters of surge, indicates Savills.
