Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Barring market disturbances or fresh cooling measures by the government, the firm believes costs will continue to expand, sustained by fresh launches. These include a handful of projects slated to start in the Core Central Region, containing the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large-scale future 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.
On the other hand, non-landed non commercial acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same period, marking the very first drop after four consecutive quarters of boost. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
At the same time, secondary sales acquired for a 2nd successive quarter, dropping 3.2% q-o-q. With both new sales and second sales recording drops, total non-landed residential sales volume receded for the first time after 3 consecutive quarters of surge, mentions Savills.
In spite of the slower sales volume, estate prices 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.
Sales drive in the exclusive residential market already indicated some indications of relieving before the tolls being released. After a strong revive in debut in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, corresponding with new sales that dropped 1.3% q-o-q.
Altogether, Savills believes the slate of brand-new release for the remainder of the year includes projects that are likely to establish new benchmarks in their respective places, contributing to a faster speed of price development in the coming quarters. Savills has maintained its full-year rate growth forecast of 7% for this year.
In addition, while property developers’ sales have slowed down ever since April, costs have continued to rise, states Savills. The company connects the strength of property prices to “the store of assets of the baby boomers along with climbing HDB resale prices, which shut the rate gap for upgraders.”
The influence of US tariffs is anticipated to balance on private home sales in the forthcoming months, according to a May research report by Savills Singapore. “As the toll wars include a degree of dilemma to the financial setting, homebuyers may practice caution and take on a wait-and-see procedure prior to committing to their home acquisitions,” states Alan Cheong, executive director for research and consultancy at the firm. “This might carry about some weakening to new sales going forward.”
The record feature that non-landed home acquisitions in 1Q2025 fell for buyers of all residency status besides permanent locals (PRs). Home acquisitions by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher purchases by PRs.
