Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Barring market interruptions or fresh cooling procedures by the government, the company thinks prices will continue to grow, supported by fresh launches. These include a handful of projects slated to release in the Core Central Area, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other massive upcoming projects consist of the 937-unit One Marina Gardens in the Rest of Central Region and the 941-unit Springleaf Residence in the Outside Central Region.
Sales drive in the exclusive home market already indicated some indications of reducing prior to the tariffs being released. After a strong revive in kick off in 4Q2024, new launches regulated 8.4% q-o-q in 1Q2025, matching with brand-new sales that dropped 1.3% q-o-q.
Additionally, while property developers’ sales have actually slowed ever since April, rates have actually remained to rise, says Savills. The firm attributes the durability of property rates to “the store of assets of the baby boomers as well as climbing HDB resale costs, which shut the price space for upgraders.”
On the other hand, non-landed housing acquisitions by Singaporeans dropped 2.6% q-o-q to 5,699 units over the exact same time frame, noting the first slip after four consecutive quarters of increase. Buys by immigrants dropped 17.6% q-o-q to 70 units in 1Q2025.
Despite the slower sales volume, estate prices continued their upward trajectory in 1Q2025, albeit at a slower pace. Rates increased 0.8% q-o-q compared to the 2.3% growth registered in the past quarter.
The influence of US tolls is anticipated to balance on private residential property sales in the coming months, according to a May research study report by Savills Singapore. “As the tariff conflicts include a degree of unpredictability to the economic setting, homebuyers may warm up care and take on a wait-and-see approach prior to committing to their home purchases,” claims Alan Cheong, executive supervisor for research and consultancy at the firm. “This might carry about some weakening to brand-new sales going forward.”
The report highlights that non-landed home purchases in 1Q2025 fell for buyers of all residency status other than long term homeowners (PRs). Home purchases by PRs climbed 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd consecutive quarter of higher purchases by PRs.
Altogether, Savills believes the slate of new release for the rest of the year includes projects that are likely to set brand-new benchmarks in their respective locations, contributing to a quicker rate of price growth in the coming quarters. Savills has sustained its full-year price growth projection of 7% for this year.
At the same time, additional sales contracted for a second successive quarter, dropping 3.2% q-o-q. With both new sales and additional sales recording falls, complete non-landed residential sales volume declined for the first time after three successive quarters of surge, indicates Savills.
