Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The influence of US tolls is expected to balance on private residential property sales in the upcoming months, according to a May research study by Savills Singapore. “As the toll struggles include a level of dilemma to the financial environment, buyers may warm up caution and embrace a wait-and-see procedure before committing to their home acquisitions,” says Alan Cheong, executive supervisor for research and consultancy at the firm. “This might carry about some slowing down to new sales moving forward.”
At the same time, additional sales contracted for a 2nd successive quarter, falling 3.2% q-o-q. With both new sales and second sales recording drops, total non-landed residential sales volume declined for the first time after 3 consecutive quarters of surge, notes Savills.
Meanwhile, non-landed residence acquisitions by Singaporeans dropped 2.6% q-o-q to 5,699 units over the same time frame, noting the initial drop after 4 consecutive quarters of rise. Purchases by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
Springleaf Residence Guocoland and Hong Leong Group
Sales momentum in the private home market already suggested some signs of alleviating before the tariffs being released. After a strong revive in debut in 4Q2024, brand-new launches regulated 8.4% q-o-q in 1Q2025, corresponding with brand-new sales that fell 1.3% q-o-q.
Despite the slow sales quantity, estate costs continued their upward trajectory in 1Q2025, albeit at a slower pace. Rates rose 0.8% q-o-q compared to the 2.3% growth signed up in the previous quarter.
In addition, while property developers’ sales have slowed down since April, prices have actually continued to rise, claims Savills. The company associates the resilience of property prices to “the store of assets of the baby boomers along with increasing HDB resale costs, that shut the rate void for upgraders.”
Altogether, Savills thinks the slate of new release for the remainder of the year includes projects that are most likely to set new benchmarks in their respective places, adding to a much faster rate of price growth in the coming quarters. Savills has actually kept its full-year rate growth projection of 7% for this year.
The record feature that non-landed home acquisitions in 1Q2025 fell for buyers of all residency status except for long-term citizens (PRs). Home acquisitions by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher acquisitions by PRs.
Barring market disturbances or fresh cooling actions by the government, the firm believes rates will continue to expand, sustained by fresh launches. These consist of a handful of projects slated to release 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 involve the 937-unit One Marina Gardens in the Rest of Central Region and the 941-unit Springleaf Residence in the Outside Central Region.
