Savills Singapore Lowers 2025 Investment Sales Forecast 23 Bil 20 Bil Us Tariffs Impact
Savills Singapore has revised its 2025 total investment sales forecast to $20 billion, lower than the initial prediction of $23 billion. This was announced in a press release, citing the negative impact from US tariffs.
The 90-day freeze on the tariffs, announced by the Trump administration on April 9, has provided some relief. However, the effect on Singapore’s real estate market remains uncertain as negotiations between the US and regional countries are ongoing, says Savills.
Alan Cheong, executive director of research and consultancy at Savills Singapore, believes that tariffs will eventually be reduced after negotiations, but the timeline and outcomes may vary from country to country. He also notes that the removal of tariffs by some countries could benefit others.
Cheong adds that it is still too early to determine the medium to long-term effects of the tariff situation on the Singapore real estate market. However, he observes that trade disruptions from Trump’s tariff intentions and ongoing geopolitical tensions have resulted in a slowdown in investment activities in Singapore in the last quarter.
According to Savills, investment sales in 1Q2025 amounted to $5.8 billion, a 24% drop from the previous quarter’s $7.64 billion. This was due to a price gap between buyers and sellers in the market, leading to the postponement or cancellation of divestments, says the firm.
While public sector investments saw a 45.1% quarter-on-quarter increase to $2.79 billion in 1Q2025, private sector deals decreased by 47.3% to $3.01 billion over the same period.
In terms of private investment sales, residential deals recorded a total of $3.77 billion in 1Q2025, comprising 64.9% of total sales and a 47.4% increase from the previous quarter. This was driven by five private residential land parcels awarded through the Government Land Sale (GLS) programme, totalling $2.78 billion.
The two top land sales in the public sector during this period were a residential site at Cuscaden Road awarded to Sustained Land for $410 million, and an industrial site at Gambas Avenue awarded to Boustead Projects for $187.3 million.
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Private residential deals in 1Q2025 included the sale of a collective sale at River Valley Apartments, which was acquired by a Singapore family office for $56 million, or $1,622 psf per plot ratio. Other notable transactions 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.
In the commercial sector, investment sales reached $1.49 billion, a 54.2% increase from the previous quarter. This was mainly driven by Frasers Centrepoint Trust’s acquisition of Northpoint City South Wing for approximately $1.13 billion.
Meanwhile, the hospitality sector recorded investment sales worth $332.8 million, up 26.5% quarter-on-quarter. Notable deals include the sale of Oakwood Studios Singapore, a freehold service apartment block on Mount Elizabeth, for $152.8 million, as well as the sale of boutique hotel 21 Carpenter for $100 million.
In the industrial sector, investments dropped drastically by 90.3% quarter-on-quarter to $211.2 million. This is attributed to the slowdown in investment activity, particularly among S-REITs, and a lukewarm response to industrial land tenders under the GLS programme. Savills notes that in the private sector, there were only seven industrial deals worth $199.4 million in the last quarter.