Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The record emphasize that non-landed home acquisitions in 1Q2025 slipped for buyers of all residency status other than permanent locals (PRs). Home acquisitions by PRs climbed 2.1% q-o-q to 931 units in 1Q2025. This is the 2nd consecutive quarter of higher purchases by PRs.
The effect of US tariffs is expected to balance on private residential property sales in the upcoming months, according to a May research statement by Savills Singapore. “As the tariff conflicts add a level of dilemma to the economic setting, homebuyers may practice care and embrace a wait-and-see method before dedicating to their home acquisitions,” says Alan Cheong, executive supervisor for research and consultancy at the firm. “This might bring about some decreasing to new sales going forward.”
In spite of the weaker sales quantity, estate rates continued their higher trajectory in 1Q2025, albeit at a slower pace. Prices rose 0.8% q-o-q compared to the 2.3% growth signed up in the previous quarter.
Barring market interruptions or fresh cooling actions by the government, the firm believes costs will remain to grow, supported by fresh launches. These consist of a handful of projects slated to release in the Core Central Region, consisting of 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.
Union Square Residences condo floor plan
On the other hand, non-landed housing purchases by Singaporeans fell 2.6% q-o-q to 5,699 units over the exact same duration, noting the initial slip after four consecutive quarters of growth. Acquisitions by immigrants dropped 17.6% q-o-q to 70 units in 1Q2025.
In addition, whilst developers’ sales have slowed since April, costs have actually remained to increase, states Savills. The firm associates the strength of property prices to “the store of wealth of the baby boomers along with rising HDB resale prices, that closed the cost space for upgraders.”
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 drops, total non-landed residential sales volume receded for the first time after three successive quarters of raise, mentions Savills.
Sales drive in the private residential market currently indicated some indicators of reducing prior to the tolls being announced. After a solid revive in kick off in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, matching with new sales that fell 1.3% q-o-q.
Altogether, Savills thinks the slate of new launches for the rest of the year consists of projects that are most likely to establish new benchmarks in their respective locations, contributing to a faster rate of rate growth in the coming quarters. Savills has sustained its full-year price development forecast of 7% for this year.
