Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The impression of United States tariffs is expected to balance on private home sales in the upcoming months, according to a May study report by Savills Singapore. “As the toll struggles include a level of dilemma to the economic setting, property buyers may practice care and embrace a wait-and-see approach before dedicating to their home acquisitions,” claims Alan Cheong, executive supervisor for research and consultancy at the firm. “This might bring about some reducing to new sales going forward.”
In spite of the slower sales quantity, real estate rates proceeded their upward trajectory in 1Q2025, albeit at a slower pace. Costs rose 0.8% q-o-q compared to the 2.3% growth signed up in the last quarter.
At the same time, secondary sales acquired for a second consecutive quarter, dropping 3.2% q-o-q. With both brand-new sales and additional sales recording drops, overall non-landed residential sales volume receded for the first time after three successive quarters of increase, indicates Savills.
Altogether, Savills thinks the slate of brand-new release for the rest of the year consists of projects that are likely to set new benchmarks in their respective locations, contributing to a quicker speed of price development in the coming quarters. Savills has actually sustained its full-year price growth projection of 7% for this year.
In addition, whilst property developers’ sales have reduced since April, rates have remained to increase, claims Savills. The company attributes the strength of property prices to “the store of assets of the baby boomers as well as climbing HDB resale rates, which shut the rate space for upgraders.”
Sales drive in the exclusive non commercial market currently showed some signs of reducing prior to the tariffs being released. 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.
Meanwhile, non-landed housing acquisitions by Singaporeans dropped 2.6% q-o-q to 5,699 units over the very same period, marking the very first fall after four consecutive quarters of boost. Buys by foreigners dropped 17.6% q-o-q to 70 units in 1Q2025.
The report emphasize that non-landed home purchases in 1Q2025 slipped for buyers of all residency status other than long-term homeowners (PRs). Home acquisitions by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd consecutive quarter of higher sales by PRs.
Barring market disruptions or fresh cooling procedures by the government, the company thinks costs will remain to grow, supported by fresh launches. These consist of 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 massive 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.
