Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
Sales drive in the exclusive residential market already indicated some signs of reducing prior to the tolls being publicized. After a strong revive in debut in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, matching with brand-new sales that fell 1.3% q-o-q.
Despite the weaker sales volume, real estate rates proceeded their upward trajectory in 1Q2025, albeit at a slower pace. Costs increased 0.8% q-o-q contrasted to the 2.3% growth signed up in the previous quarter.
The impact of United States tolls is expected to weigh on private residential property sales in the upcoming months, according to a May study statement by Savills Singapore. “As the toll wars include a level of dilemma to the economic setting, property buyers might exercise care and take on a wait-and-see method prior to committing to their home acquisitions,” states Alan Cheong, executive director for research and consultancy at the firm. “This may carry about some slowing down to brand-new sales going forward.”
At the same time, additional sales contracted for a second consecutive quarter, dropping 3.2% q-o-q. With both brand-new sales and second sales recording drops, complete non-landed residential sales volume dropped for the very first time after 3 successive quarters of surge, indicates Savills.
In addition, while property developers’ sales have slowed since April, rates have actually remained to increase, claims Savills. The firm associates the resilience of property prices to “the store of assets of the baby boomers along with climbing HDB resale prices, which shut the price void for upgraders.”
The record highlights that non-landed home acquisitions in 1Q2025 slipped for buyers of all residency status besides long-term locals (PRs). Home acquisitions by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the second consecutive quarter of higher acquisitions by PRs.
Barring market interruptions or fresh cooling measures by the government, the firm thinks prices will continue to grow, sustained by fresh launches. These include 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 massive 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.
Meanwhile, non-landed residence acquisitions by Singaporeans fell 2.6% q-o-q to 5,699 units over the very same period, marking the very first drop after 4 consecutive quarters of increase. Buys by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
Altogether, Savills thinks the slate of brand-new release for the remainder of the year consists of projects that are most likely to establish new benchmarks in their respective places, contributing to a quicker speed of rate growth in the coming quarters. Savills has sustained its full-year rate development projection of 7% for this year.
