Savills: Singapore private home prices could rise up to 7% amid strong demand and record-high new launches
SINGAPORE: Private home prices in Singapore could go up by as much as 7% in 2025, according to Savills Singapore. The real estate firm said strong demand and new project launches with record-high prices are the main reasons for the expected increase, Singapore Business Review reported.
Private home prices went up 0.8% in the first quarter of 2025, after a bigger 2.3% increase in the last quarter of 2024. The firm noted that while sales have slowed since April due to economic uncertainties like the US tariff policies, prices have kept rising.
Savills said the price resilience is holding up because of baby boomers with strong finances and the narrowing gap between HDB resale prices and private home prices. The firm expects price growth may accelerate in the coming months as new project launches with record-high prices enter the market.
While overall sales fell in Q1, private home purchases by Singapore permanent residents (PRs) went up by 2.1% from the previous quarter. This was the second quarter in a row that PRs bought more private homes, making up 13.9% of all non-landed private home sales, up from 13.3% in Q4 2024. See also 141 HDB resale flats sold for at least $1 million in April
Meanwhile, sales by Singapore citizens dropped by 2.6% after four straight quarters of growth. Foreign buyers pulled back the most, dropping by 17.6%, with their market share hitting a new low of just 1%, the lowest level seen since the Urban Redevelopment Authority started tracking the data.
The firm said the drop in foreign demand was mainly due to the higher Additional Buyer's Stamp Duty (ABSD) introduced in the second quarter of 2023, along with wider global uncertainties.
The real estate firm remains cautiously optimistic about the market, particularly in well-located and suburban areas, noting that controlled land supply and strong market fundamentals are contributing to stable and sustainable growth. While there was a slight drop in transaction volumes, Savills noted that demand remains strong, providing long-term value opportunities for homeowners and investors. /TISG
Read also: More private property owners downsize to qualify for Silver Housing Bonus; enhancement expanded to private homes with seniors
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