Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
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 add a degree of uncertainty to the economic environment, homebuyers may practice caution and adopt a wait-and-see method prior to committing to their home acquisitions,” says Alan Cheong, executive administrator for research and consultancy at the firm. “This might deliver about some slowing down to new sales moving forward.”
Additionally, whilst developers’ sales have slowed since April, costs have continued to increase, claims Savills. The company connects the strength of property prices to “the store of assets of the baby boomers along with increasing HDB resale costs, that closed the cost space for upgraders.”
The report highlights that non-landed home acquisitions in 1Q2025 slipped for buyers of all residency status besides long-term residents (PRs). Home purchases by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher acquisitions by PRs.
Meanwhile, non-landed residence purchases by Singaporeans dropped 2.6% q-o-q to 5,699 units over the exact same time frame, noting the first slip after 4 consecutive quarters of rise. Acquisitions by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
Meyer Blue UOL Group Limited & Singapore Land
At the same time, secondary sales acquired 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 receded for the first time after three successive quarters of raise, notes Savills.
Altogether, Savills thinks the slate of new release for the rest of the year consists of projects that are most likely to set brand-new benchmarks in their respective places, adding to a much faster speed of rate development in the coming quarters. Savills has preserved its full-year cost growth projection of 7% for this year.
Barring market interruptions or fresh cooling actions by the government, the firm believes prices will continue to grow, sustained by fresh launches. These consist of a handful of projects slated to start in the Core Central Region, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other massive 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.
Regardless of the slow sales quantity, real estate rates continued their higher trajectory in 1Q2025, albeit at a slower pace. Prices climbed 0.8% q-o-q contrasted to the 2.3% growth registered in the last quarter.
Sales force in the exclusive home market currently showed some indicators of relieving prior to the tolls being released. After a solid revive in kick off in 4Q2024, new launches regulated 8.4% q-o-q in 1Q2025, matching with new sales that fell 1.3% q-o-q.
