%20(1).jpg?Xwx16FTlik_M.tM_PeTr6jlTRCQ3tNsG&itok=w6rbeMHY "Savills says the lower estimate takes into account “the negative bias from the US tariffs” (Picture: Albert Chua/The Edge Singapore)")
Savills Singapore has revised its total investment sales forecast for 2025 to $20 billion, down from the $23 billion it had predicted earlier. In a press release, the firm states the lower estimate takes into account “the negative bias from the US tariffs”.
While the 90-day freeze on the tariffs announced by the Trump administration on April 9 has brought some relief, the impact on Singapore’s real estate market will depend on negotiations between regional countries and the US, the firm adds.
Alan Cheong, executive director of research and consultancy and Savills Singapore, believes tariffs will likely be reduced following negotiations, though this will take time, and outcomes may differ from country to country. “However, one cannot be too pessimistic about the tariffs because if enough countries were to remove them and the US reciprocates, then the benefits that would have accrued to those that did not remove would flow to those that did,” he adds.
Cheong says it is still too early to determine the medium to longer-term impact of the tariff situation on the Singapore real estate market. Still, he observes that trade disruptions arising from Trump’s tariff intentions and ongoing geopolitical tensions have contributed to a slowdown in Singapore investment activities last quarter.
Investment sales totalled $5.8 billion in 1Q2025, 24% lower than the $7.64 billion recorded in the previous quarter. In addition to the uncertainties in the market, the slump reflects a price gap between buyers and sellers in the market that compelled some vendors to abort or postpone divestments, says Savills.
While the public sector saw a 45.1% q-o-q surge to $2.79 billion in 1Q2025 investments, private sector deals plummeted by 47.3% q-o-q to $3.01 billion over the same period.
Top private investment sales, 1Q2025
Residential investment sales totalled $3.77 billion in 1Q2025, making up 64.9% of total sales and reflecting a 47.4% q-o-q spike. The growth was underpinned by five private residential land parcels awarded through the Government Land Sale (GLS) programme worth $2.78 billion.
Top land sales in the public sector, 1Q2025
Source: URA, Savills Research & Consultancy
Private residential deals last quarter included one collective sale — River Valley Apartments, which was sold to a Singapore family office for $56 million, or $1,622 psf per plot ratio. Other deals include the sale of a Good Class Bungalow in Cluny Hill for $58 million, or $3,557 psf on the land area of 16,306 sq ft.
The commercial sector saw $1.49 billion in investment sales last quarter, jumping 54.2% q-o-q, predominantly due to the Frasers Centrepoint Trust’s acquisition of Northpoint City South Wing for about $1.13 billion.
Hospitality sector investment sales totalled $332.8 million in 1Q2025, up 26.5% q-o-q. Deals during the quarter include the sale of Oakwood Studios Singapore, a freehold service apartment block on Mount Elizabeth, for $152.8 million; and the sale of boutique hotel 21 Carpenter for $100 million.
In the industrial sector, sales fell a steep 90.3% q-o-q to $211.2 million. Savills attributes this to a slowdown in investment activity, particularly among S-REITs, as well as a lacklustre response to industrial land tenders under the GLS programme. In the private sector, seven industrial deals were logged last quarter with a total transaction value of $199.4 million.
