Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales drive in the exclusive non commercial market already suggested some indicators of reducing before the tariffs being publicized. After a strong rebound in launches in 4Q2024, new start moderated 8.4% q-o-q in 1Q2025, matching with brand-new sales that fell 1.3% q-o-q.
Meanwhile, non-landed residence acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the same duration, marking the very first drop after 4 consecutive quarters of rise. Buys by foreigners dropped 17.6% q-o-q to 70 units in 1Q2025.
Barring market disturbances or fresh cooling procedures by the government, the company believes prices will continue to grow, sustained by fresh launches. These consist of a handful of projects slated to release in the Core Central Region, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other large 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.
Altogether, Savills thinks the slate of new launches for the remainder of the year consists of projects that are most likely to set brand-new benchmarks in their respective places, adding to a quicker speed of rate development in the coming quarters. Savills has actually sustained its full-year rate growth forecast of 7% for this year.
The Arcady @ Boon Keng Singapore
Despite the weaker sales volume, real estate prices continued their higher trajectory in 1Q2025, albeit at a slower pace. Rates increased 0.8% q-o-q compared to the 2.3% growth signed up in the previous quarter.
In addition, while developers’ sales have reduced ever since April, costs have actually remained to ascend, claims Savills. The company attributes the resilience of property rates to “the store of assets of the baby boomers in addition to increasing HDB resale prices, which shut the price void for upgraders.”
The record highlights that non-landed home acquisitions in 1Q2025 dropped for buyers of all residency status besides long-term citizens (PRs). Home purchases by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher purchases by PRs.
The influence of United States tariffs is anticipated to weigh on private home sales in the forthcoming months, according to a May study by Savills Singapore. “As the toll conflicts add a degree of uncertainty to the economic environment, buyers may practice caution and adopt a wait-and-see procedure prior to committing to their home acquisitions,” states Alan Cheong, executive administrator for research and consultancy at the firm. “This might carry about some slowing down to brand-new sales moving forward.”
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 drops, total non-landed residential sales volume receded for the first time after 3 consecutive quarters of increase, indicates Savills.
