Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Barring market disturbances or fresh cooling measures by the government, the company believes rates will continue to expand, supported by fresh launches. These include a handful of projects slated to launch 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 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.
On the other hand, non-landed housing acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same time frame, noting the very first drop after 4 consecutive quarters of increase. Acquisitions by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
In addition, whilst property developers’ sales have actually reduced since April, costs have continued to increase, says Savills. The company connects the strength of property rates to “the store of wealth of the baby boomers along with increasing HDB resale rates, which closed the cost gap for upgraders.”
Sales momentum in the private non commercial market already showed some indications of easing before the tariffs being announced. After a strong rebound in kick off in 4Q2024, brand-new launches moderated 8.4% q-o-q in 1Q2025, matching with new sales that dropped 1.3% q-o-q.
Altogether, Savills believes the slate of brand-new launches for the rest of the year consists of projects that are most likely to set new benchmarks in their respective locations, contributing to a faster pace of cost development in the coming quarters. Savills has actually sustained its full-year rate growth projection of 7% for this year.
At the same time, additional sales contracted for a second successive quarter, dropping 3.2% q-o-q. With both brand-new sales and additional sales recording falls, overall non-landed residential sales volume declined for the first time after three consecutive quarters of surge, mentions Savills.
The impression of US tolls is expected to weigh on private house sales in the forthcoming months, according to a May research study statement by Savills Singapore. “As the toll conflicts add a degree of uncertainty to the financial setting, buyers may practice caution and take on a wait-and-see approach prior to devoting to their home acquisitions,” claims Alan Cheong, executive administrator for research and consultancy at the firm. “This might deliver about some reducing to new sales going forward.”
The record emphasize that non-landed home purchases in 1Q2025 slipped for buyers of all residency status other than long term residents (PRs). Home investments by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd consecutive quarter of higher sales by PRs.
Regardless of the weaker sales volume, property prices proceeded their higher trajectory in 1Q2025, albeit at a slower pace. Rates climbed 0.8% q-o-q contrasted to the 2.3% growth registered in the previous quarter.
