Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The impact of US tolls is expected to balance on private property sales in the coming months, according to a May research study by Savills Singapore. “As the toll struggles add a degree of uncertainty to the economic setting, property buyers may practice care and adopt a wait-and-see process before committing to their home acquisitions,” says Alan Cheong, executive administrator for research and consultancy at the firm. “This might carry about some weakening to new sales going forward.”
Additionally, while developers’ sales have slowed down since April, prices have actually remained to rise, claims Savills. The firm connects the strength of property prices to “the store of assets of the baby boomers along with increasing HDB resale costs, which shut the cost gap for upgraders.”
At the same time, secondary sales contracted for a second consecutive quarter, dropping 3.2% q-o-q. With both new sales and secondary sales recording drops, total non-landed residential sales volume receded for the first time after three consecutive quarters of surge, indicates Savills.
On the other hand, non-landed residence acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the same period, marking the initial slip after 4 consecutive quarters of increase. Buys by foreigners fell 17.6% q-o-q to 70 units in 1Q2025.
Altogether, Savills believes the slate of brand-new launches for the rest of the year includes projects that are likely to establish new benchmarks in their respective places, contributing to a faster pace of cost growth in the coming quarters. Savills has preserved its full-year rate growth projection of 7% for this year.
The record feature that non-landed home purchases in 1Q2025 dropped for buyers of all residency status besides long term citizens (PRs). Home purchases by PRs rose 2.1% q-o-q to 931 units in 1Q2025. This is the second consecutive quarter of higher sales by PRs.
Sales force in the private non commercial market already showed some indications of reducing prior to the tolls being released. After a solid revive in launches in 4Q2024, new launches moderated 8.4% q-o-q in 1Q2025, matching with new sales that fell 1.3% q-o-q.
Barring market disruptions or fresh cooling measures by the government, the company believes rates will remain to grow, supported by fresh launches. These include a handful of projects slated to release 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 future 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.
In spite of the weaker sales volume, property rates continued their higher trajectory in 1Q2025, albeit at a slower pace. Costs increased 0.8% q-o-q contrasted to the 2.3% growth registered in the previous quarter.
