Private residential sales prices in Singapore are projected to rise by up to 7% in 2025, according to Savills Research. This forecast remains contingent on the absence of market disruptions or government interventions. The first quarter of 2025 saw a 0.8% quarter-on-quarter increase in prices, following a significant 2.3% rise in the last quarter of 2024. Savills anticipates that prices will continue to climb as new projects set higher benchmarks.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted that ongoing tariff wars are causing economic uncertainty, prompting homebuyers to adopt a cautious approach. Despite a slowdown in new sales since April, prices have remained resilient due to the wealth of baby boomers and rising Housing Development Board (HDB) resale prices, which support demand from upgraders.
In Q1 2025, non-landed residential sales among Singapore permanent residents increased by 2.1% quarter-on-quarter, marking the second consecutive quarter of growth. However, sales to Singaporeans and foreigners declined by 2.6% and 17.6%, respectively. The proportion of non-landed sales by permanent residents rose to 13.9%, whilst sales by foreigners fell to 1%, the lowest since records began.
George Tan, Managing Director of Livethere Residential at Savills Singapore, commented on the market’s cautious optimism, particularly in well-located and suburban areas. He highlighted the stable and sustainable growth of the private residential market, supported by calibrated land supply and resilient fundamentals.
As the year progresses, the market will be closely watched for any changes in economic conditions or policy interventions that could impact these projections.
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