Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales drive in the exclusive home market already suggested some indications of easing prior to the tariffs being announced. After a solid revive in debut in 4Q2024, new launches moderated 8.4% q-o-q in 1Q2025, matching with new sales that dropped 1.3% q-o-q.
At the same time, additional sales acquired for a second consecutive quarter, falling 3.2% q-o-q. With both new sales and secondary sales recording falls, total non-landed residential sales volume receded for the first time after 3 successive quarters of raise, notes Savills.
In addition, whilst property developers’ sales have actually reduced since April, costs have actually continued to increase, states Savills. The company connects the resilience of property prices to “the store of assets of the baby boomers along with increasing HDB resale prices, that shut the cost space for upgraders.”
The report feature that non-landed home purchases in 1Q2025 slipped for buyers of all residency status other than long term residents (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.
Meanwhile, non-landed residential purchases by Singaporeans fell 2.6% q-o-q to 5,699 units over the very same time frame, noting the initial slip after 4 consecutive quarters of boost. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
Regardless of the weaker sales volume, estate rates continued their upward trajectory in 1Q2025, albeit at a slower pace. Costs rose 0.8% q-o-q contrasted to the 2.3% growth registered in the past quarter.
Altogether, Savills believes the slate of new launches for the remainder of the year consists of projects that are likely to set new benchmarks in their respective places, adding to a faster rate of price growth in the coming quarters. Savills has sustained its full-year rate growth forecast of 7% for this year.
The impact of US tolls is anticipated to balance on private residential property sales in the upcoming months, according to a May research statement by Savills Singapore. “As the tariff conflicts include a level of uncertainty to the financial atmosphere, buyers might warm up caution and take on a wait-and-see procedure before dedicating to their home acquisitions,” claims Alan Cheong, executive supervisor for research and consultancy at the firm. “This may carry about some decreasing to new sales moving forward.”
Barring market disruptions or fresh cooling procedures by the government, the company believes prices will continue to grow, sustained by fresh launches. These include a handful of projects slated to start in the Core Central Region, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large 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.
