Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The report highlights that non-landed home purchases in 1Q2025 slipped for buyers of all residency status other than long term homeowners (PRs). Home transactions by PRs climbed 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher acquisitions by PRs.
Sales force in the private residential market already suggested some signs of relieving before the tolls being publicized. After a strong revive in debut in 4Q2024, brand-new launches moderated 8.4% q-o-q in 1Q2025, matching with new sales that dropped 1.3% q-o-q.
Additionally, whilst developers’ sales have actually slowed down since April, rates have continued to ascend, claims Savills. The company attributes the resilience of property prices to “the store of assets of the baby boomers along with increasing HDB resale rates, which closed the rate void for upgraders.”
Barring market disturbances or fresh cooling procedures by the government, the firm believes prices will remain to grow, sustained by fresh launches. These include a handful of projects slated to release in the Core Central Area, consisting of the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large upcoming 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.
At the same time, additional sales acquired for a 2nd successive quarter, falling 3.2% q-o-q. With both brand-new sales and secondary sales recording falls, total non-landed residential sales volume dropped for the very first time after 3 consecutive quarters of surge, indicates Savills.
Altogether, Savills thinks the slate of new launches for the rest of the year includes projects that are most likely to establish new benchmarks in their respective places, contributing to a faster speed of rate growth in the coming quarters. Savills has actually kept its full-year price development projection of 7% for this year.
The impact of US tariffs is anticipated to balance on private house sales in the upcoming months, according to a May research study by Savills Singapore. “As the tariff conflicts add a level of uncertainty to the economic environment, homebuyers may exercise caution and embrace a wait-and-see procedure prior to committing to their home purchases,” says Alan Cheong, executive administrator for research and consultancy at the firm. “This might carry about some weakening to new sales moving forward.”
Regardless of the slower sales volume, property rates continued their upward trajectory in 1Q2025, albeit at a slower pace. Rates rose 0.8% q-o-q contrasted to the 2.3% growth signed up in the last quarter.
Meanwhile, non-landed residential purchases by Singaporeans dropped 2.6% q-o-q to 5,699 units over the exact same duration, noting the initial drop after 4 consecutive quarters of boost. Buys by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
