Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales momentum in the exclusive home market currently suggested some indicators of easing before the tariffs being released. After a solid revive in kick off in 4Q2024, brand-new launches regulated 8.4% q-o-q in 1Q2025, matching with brand-new sales that fell 1.3% q-o-q.
Altogether, Savills believes the slate of brand-new launches for the rest of the year includes projects that are most likely to set brand-new benchmarks in their respective places, adding to a faster pace of cost development in the coming quarters. Savills has sustained its full-year rate development projection of 7% for this year.
The record highlights that non-landed home purchases in 1Q2025 dropped for buyers of all residency status except for permanent citizens (PRs). Home transactions by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the second consecutive 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 exact same duration, marking the first drop after four consecutive quarters of growth. Buys by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
In addition, while developers’ sales have slowed since April, rates have actually continued to increase, states Savills. The company attributes the durability of property prices to “the store of wealth of the baby boomers along with climbing HDB resale prices, that shut the rate space for upgraders.”
At the same time, secondary sales contracted for a 2nd consecutive quarter, falling 3.2% q-o-q. With both new sales and secondary sales recording drops, overall non-landed residential sales volume declined for the very first time after 3 consecutive quarters of surge, indicates Savills.
Barring market disruptions or fresh cooling procedures by the government, the company believes rates will continue to expand, supported by fresh launches. These consist of a handful of projects slated to launch in the Core Central Area, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large-scale 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.
Pinetree Hill UOL Group & Singapore Land Group Limited
Regardless of the slow sales volume, real estate prices proceeded their higher trajectory in 1Q2025, albeit at a slower pace. Prices rose 0.8% q-o-q compared to the 2.3% growth signed up in the previous quarter.
The influence of US tariffs is expected to balance on private home sales in the forthcoming months, according to a May research report by Savills Singapore. “As the toll struggles add a degree of uncertainty to the economic environment, property buyers might practice care and adopt a wait-and-see process prior to devoting to their home acquisitions,” says Alan Cheong, executive director for research and consultancy at the firm. “This might bring about some decreasing to brand-new sales going forward.”
