Private residential prices still rising despite slower sales, tariff wars: Savills Singapore
The impact of US tariffs is expected to balance on private house sales in the forthcoming months, according to a May research statement by Savills Singapore. “As the toll wars include a level of dilemma to the financial atmosphere, buyers might practice caution and adopt a wait-and-see approach before dedicating to their home purchases,” states Alan Cheong, executive supervisor for research and consultancy at the firm. “This may bring about some reducing to brand-new sales going forward.”
On the other hand, non-landed non commercial purchases by Singaporeans dropped 2.6% q-o-q to 5,699 units over the exact same time frame, noting the first fall after 4 consecutive quarters of growth. Purchases by immigrants fell 17.6% q-o-q to 70 units in 1Q2025.
The report emphasize that non-landed home acquisitions in 1Q2025 fell for buyers of all residency status except for long-term locals (PRs). Home transactions by PRs increased 2.1% q-o-q to 931 units in 1Q2025. This is the second successive quarter of higher sales by PRs.
Despite the slow sales quantity, real estate prices proceeded their upward trajectory in 1Q2025, albeit at a slower pace. Rates rose 0.8% q-o-q contrasted to the 2.3% growth registered in the previous quarter.
Additionally, whilst property developers’ sales have slowed down ever since April, costs have remained to ascend, says Savills. The company attributes the durability of property prices to “the store of assets of the baby boomers in addition to climbing HDB resale rates, that shut the cost gap for upgraders.”
Sales drive in the private non commercial market already suggested some indicators of relieving before the tariffs being publicized. After a strong revive in debut in 4Q2024, brand-new start regulated 8.4% q-o-q in 1Q2025, corresponding with new sales that dropped 1.3% q-o-q.
Altogether, Savills believes the slate of new release for the remainder of the year consists of projects that are likely to set brand-new benchmarks in their respective places, contributing to a faster pace of price growth in the coming quarters. Savills has actually preserved its full-year price development projection of 7% for this year.
Barring market disturbances or fresh cooling measures by the government, the firm believes rates will continue to expand, supported by fresh launches. These consist of a handful of projects slated to launch 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 consist of the 937-unit One Marina Gardens in the Rest of Central Region and the 941-unit Springleaf Residence in the Outside Central Region.
At the same time, additional sales acquired for a 2nd consecutive quarter, falling 3.2% q-o-q. With both new sales and additional sales recording falls, total non-landed residential sales volume declined for the first time after three successive quarters of surge, indicates Savills.
