Savills Singapore has adjusted its 2025 private residential price growth forecast to between 3% and 5%. This revision reflects resilient demand driven by higher Housing Development Board (HDB) resale prices and strong purchasing power among older buyers, despite cooling measures and a reduction in new launches affecting sales volumes. The adjustment comes amid a mixed performance in Q2 2025, where new home sales fell sharply due to fewer project launches, whilst the secondary market showed a modest recovery.
New private residential launches in Q2 2025 dropped by 51.6% quarter-on-quarter, attributed to project delays following the announcement of US tariffs and the June school holidays. This led to a 64.1% decline in primary sales. Conversely, secondary home sales increased by 0.8% quarter-on-quarter, supported by narrowing price gaps between new and resale homes, higher HDB resale prices, and easing mortgage rates. However, year-on-year volumes saw a 6.5% decrease, marking the first annual fall after six consecutive quarters of growth.
All buyer groups purchased fewer homes in Q2, with Singaporean buyers experiencing the steepest decline at 37% quarter-on-quarter. Foreigners and permanent residents also saw declines of 23.2% and 13.9% respectively. The fall in new launches, global economic uncertainties, and high additional buyer’s stamp duty (ABSD) rates for foreigners are believed to have deterred these groups from purchasing.
Alan Cheong, Executive Director of Savills Research & Consultancy, noted, “Whilst broader economic uncertainties and job security issues may kerb some near-term demand, the weight of money from the baby boomer generation and upgraders from higher priced HDB flats is still expected to buttress the market.”
Private residential prices rose by 1.0% quarter-on-quarter in Q2 2025, with landed homes leading the increase at 2.2%, whilst non-landed homes posted a 0.7% rise. As the market adjusts, Savills anticipates that upcoming launches will continue to support prices.
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