Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales force in the exclusive residential market already suggested some signs of easing prior to the tariffs being released. After a solid revive in kick off in 4Q2024, brand-new launches moderated 8.4% q-o-q in 1Q2025, matching with brand-new sales that fell 1.3% q-o-q.
Regardless of the slower sales volume, real estate costs proceeded their higher trajectory in 1Q2025, albeit at a slower pace. Costs increased 0.8% q-o-q contrasted to the 2.3% growth registered in the previous quarter.
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On the other hand, non-landed residential purchases by Singaporeans fell 2.6% q-o-q to 5,699 units over the very same time frame, noting the initial drop after 4 consecutive quarters of boost. Purchases by foreigners dropped 17.6% q-o-q to 70 units in 1Q2025.
The impression of US tolls is anticipated to weigh on private home sales in the upcoming months, according to a May research study statement by Savills Singapore. “As the toll struggles include a degree of dilemma to the economic setting, property buyers might practice care and adopt a wait-and-see process prior to committing to their home acquisitions,” says Alan Cheong, executive supervisor for research and consultancy at the firm. “This may carry about some weakening to new sales going forward.”
Barring market disruptions or fresh cooling actions by the government, the firm thinks rates will continue to grow, sustained by fresh launches. These consist of a handful of projects slated to start 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-scale 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.
The record highlights that non-landed home acquisitions in 1Q2025 dropped for buyers of all residency status except for long term citizens (PRs). Home transactions by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher sales by PRs.
At the same time, secondary sales contracted for a 2nd successive quarter, dropping 3.2% q-o-q. With both brand-new sales and secondary sales recording drops, total non-landed residential sales volume dropped for the very first time after three successive quarters of surge, indicates Savills.
In addition, while property developers’ sales have actually reduced ever since April, costs have actually continued to increase, states Savills. The firm connects the resilience of property rates to “the store of assets of the baby boomers as well as rising HDB resale prices, that closed the price gap for upgraders.”
Altogether, Savills thinks the slate of brand-new launches for the remainder of the year consists of projects that are most likely to set brand-new benchmarks in their respective locations, contributing to a quicker rate of price growth in the coming quarters. Savills has kept its full-year price growth forecast of 7% for this year.
