Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales momentum in the exclusive residential market already indicated some indicators of reducing before the tolls being announced. After a strong rebound in launches in 4Q2024, new start moderated 8.4% q-o-q in 1Q2025, corresponding with brand-new sales that dropped 1.3% q-o-q.
At the same time, additional sales acquired for a second consecutive quarter, dropping 3.2% q-o-q. With both new sales and secondary sales recording drops, overall non-landed residential sales volume receded for the very first time after 3 successive quarters of surge, indicates Savills.
Additionally, while property developers’ sales have actually slowed down ever since April, costs have continued to rise, says Savills. The company associates the durability of property prices to “the store of assets of the baby boomers in addition to increasing HDB resale costs, that closed the rate gap for upgraders.”
The record feature that non-landed home purchases in 1Q2025 fell for buyers of all residency status other than long term homeowners (PRs). Home transactions by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd successive quarter of higher purchasings by PRs.
Regardless of the weaker sales volume, property rates proceeded their higher trajectory in 1Q2025, albeit at a slower pace. Costs increased 0.8% q-o-q compared to the 2.3% growth registered in the last quarter.
Barring market interruptions or fresh cooling measures by the government, the firm thinks rates will continue to grow, supported by fresh launches. These consist of a handful of projects slated to release in the Core Central Area, including the 525-unit River Green, the 596-unit Promenade Peak and the 683-unit Marina View Residences. Other massive upcoming projects include the 937-unit One Marina Gardens in the Rest of Central Region and the 941-unit Springleaf Residence in the Outside Central Region.
Meanwhile, non-landed residence purchases by Singaporeans dropped 2.6% q-o-q to 5,699 units over the same period, marking the first drop after four consecutive quarters of increase. Buys by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
The effect of US tariffs is expected to balance on private house sales in the upcoming months, according to a May research study report by Savills Singapore. “As the toll wars include a level of uncertainty to the financial atmosphere, buyers might warm up care and take on a wait-and-see method before devoting to their home purchases,” states Alan Cheong, executive director for research and consultancy at the firm. “This may bring about some reducing to new sales moving forward.”
Altogether, Savills thinks the slate of new launches for the remainder of the year consists of projects that are most likely to establish brand-new benchmarks in their respective locations, contributing to a quicker rate of rate growth in the coming quarters. Savills has actually kept its full-year rate growth projection of 7% for this year.
