Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The record emphasize that non-landed home purchases in 1Q2025 dropped for buyers of all residency status other than permanent residents (PRs). Home investments by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd successive quarter of higher purchases by PRs.
The impact of US tariffs is expected to balance on private residential property sales in the coming months, according to a May research study report by Savills Singapore. “As the tariff struggles include a degree of dilemma to the economic atmosphere, homebuyers might warm up care and embrace a wait-and-see approach before committing to their home acquisitions,” claims Alan Cheong, executive administrator for research and consultancy at the firm. “This may carry about some slowing down to new sales going forward.”
In spite of the weaker sales quantity, property rates continued their higher trajectory in 1Q2025, albeit at a slower pace. Rates rose 0.8% q-o-q contrasted to the 2.3% growth registered in the last quarter.
On the other hand, non-landed residence acquisitions by Singaporeans dropped 2.6% q-o-q to 5,699 units over the exact same duration, noting the very first fall after 4 consecutive quarters of rise. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
Barring market interruptions or fresh cooling measures by the government, the company thinks prices will continue to expand, supported by fresh launches. These consist of a handful of projects slated to release 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-scale upcoming 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.
Additionally, while property developers’ sales have slowed ever since April, costs have remained to increase, says Savills. The company associates the strength of property rates to “the store of assets of the baby boomers in addition to climbing HDB resale prices, which closed the price gap for upgraders.”
Altogether, Savills thinks the slate of new release for the remainder of the year includes projects that are likely to set new benchmarks in their respective locations, contributing to a much faster rate of rate development in the coming quarters. Savills has actually sustained its full-year price development projection of 7% for this year.
At the same time, secondary sales acquired for a second successive quarter, dropping 3.2% q-o-q. With both brand-new sales and secondary sales recording falls, total non-landed residential sales volume declined for the first time after 3 consecutive quarters of surge, mentions Savills.
Sales momentum in the private non commercial market already showed some indications of easing prior to the tolls being declared. After a solid rebound in launches in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, corresponding with new sales that dropped 1.3% q-o-q.
