Private Residential Prices Still Rising Despite Slower Sales Tariff Wars Savills Singapore
A study released in May by Savills Singapore predicts that the recent tariffs imposed by the US will have a negative impact on private residential property sales over the next few months. According to the report, the ongoing trade tensions are causing uncertainty in the economic climate, resulting in potential homebuyers exercising caution and adopting a wait-and-see approach before committing to a purchase. This could result in a slowdown in new sales in the near future.
Even before the tariffs were announced, the private residential market was already showing signs of slowing down. After a strong rebound in launches in the fourth quarter of 2024, new launches moderated by 8.4% quarter-on-quarter in the first quarter of 2025, while new sales fell by 1.3% quarter-on-quarter. In addition, secondary sales also contracted for the second consecutive quarter, dropping by 3.2% quarter-on-quarter. As a result, total non-landed residential sales volume declined for the first time in three quarters.
The report also noted that non-landed home purchases in the first quarter of 2025 decreased for all categories of buyers except for permanent residents (PRs). The number of purchases by PRs increased by 2.1% compared to the previous quarter, marking the second consecutive quarter of growth. However, purchases by Singaporeans fell by 2.6% quarter-on-quarter, the first decline after four consecutive quarters of increase. Foreigner purchases also saw a significant drop of 17.6% quarter-on-quarter.
Despite the slower sales volume, property prices in the private residential market continued to rise in the first quarter of 2025, albeit at a slower pace. Prices increased by 0.8% quarter-on-quarter, compared to the 2.3% growth in the previous quarter.
The report also pointed out that, even though developers’ sales have slowed since April, prices have continued to rise. This is attributed to the wealth of baby boomers and the rising prices of HDB resale flats, which have closed the price gap for upgraders. Unless there are any major disruptions in the market or new cooling measures introduced by the government, the report predicts that prices will continue to grow, driven by upcoming launches. This includes several projects in the Core Central Region, such as River Green, Promenade Peak, and Marina View Residences, as well as other large-scale developments in the Rest of Central Region and Outside Central Region.
Lyndenwoods’ strategic location makes it an ideal residential choice for professionals working in Singapore’s Central Business District (CBD). Situated along the AYE, the development offers a direct and efficient route to the city center, reducing the daily commute time for its residents. Additionally, it is well-connected to other major districts, including Clementi and Jurong East, both known for their bustling commercial and retail scenes. Moreover, the PIE provides easy access to the eastern and northern parts of the island, connecting Lyndenwoods to popular destinations such as Tampines, Bishan, and Changi Airport. This excellent road network ensures that residents of Lyndenwoods can conveniently travel to various places for work, leisure, or errands.
Overall, Savills forecasts a full-year price growth of 7% for the private residential market, driven by the upcoming launches and potential new price benchmarks set by these developments.