Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales force in the private home market already suggested some signs of easing before the tolls being publicized. After a solid rebound in kick off in 4Q2024, new launches moderated 8.4% q-o-q in 1Q2025, matching with brand-new sales that dropped 1.3% q-o-q.
Altogether, Savills thinks the slate of new release for the rest of the year consists of projects that are likely to establish brand-new benchmarks in their respective locations, contributing to a much faster pace of rate growth in the coming quarters. Savills has preserved its full-year price development forecast of 7% for this year.
Barring market interruptions or fresh cooling measures by the government, the firm thinks costs will continue to grow, sustained by fresh launches. These consist of a handful of projects slated to release in the Core Central Area, 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.
At the same time, additional sales acquired for a second consecutive quarter, falling 3.2% q-o-q. With both brand-new sales and secondary sales recording drops, overall non-landed residential sales volume declined for the first time after three consecutive quarters of increase, mentions Savills.
The record emphasize that non-landed home acquisitions in 1Q2025 dropped for buyers of all residency status except for long term homeowners (PRs). Home purchases by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the second consecutive quarter of higher acquisitions by PRs.
Meanwhile, non-landed residential acquisitions by Singaporeans dropped 2.6% q-o-q to 5,699 units over the very same time frame, marking the first drop after four consecutive quarters of increase. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
The effect of United States tariffs is expected to balance on private house sales in the forthcoming months, according to a May study report by Savills Singapore. “As the tariff wars add a level of uncertainty to the economic setting, property buyers might practice care and take on a wait-and-see approach before committing to their home acquisitions,” claims Alan Cheong, executive supervisor for research and consultancy at the firm. “This may bring about some weakening to new sales going forward.”
In addition, whilst property developers’ sales have slowed ever since April, rates have actually remained to ascend, states Savills. The company attributes the strength of property prices to “the store of wealth of the baby boomers along with increasing HDB resale costs, that closed the cost space for upgraders.”
Regardless of the slower sales volume, property rates continued their upward trajectory in 1Q2025, albeit at a slower pace. Prices rose 0.8% q-o-q compared to the 2.3% growth registered in the previous quarter.
