Singapore’s Luxury Property Market: How Local Demand is Rewriting the Rules
Imagine a scenario: a prime district penthouse in Singapore, once the exclusive playground of international investors, now primarily attracting bids from local families. This isn’t a futuristic prediction; it’s the reality unfolding in Singapore’s luxury residential market. Recent data reveals a dramatic shift – Singaporeans are now the dominant force in high-end property purchases, a trend poised to reshape the landscape of luxury launches in 2026 and beyond.
The Rise of the Local Luxury Buyer
From July to September 2025, a staggering 130 out of 171 landed and non-landed homes sold for $5 million or more in the Core Central Region (CCR) were snapped up by Singaporeans, according to the Luxury Residential Market Report by OrangeTee & Tie. This represents a significant jump from previous quarters, with the proportion of Singaporean buyers increasing from 70% to 76% in just three months, and exceeding the 72.5% recorded in the third quarter of 2024. This isn’t simply a numerical shift; it’s a fundamental change in market dynamics.
“The strong local demand is a reflection of the growing affluence among Singaporeans and their keen interest in acquiring high-end real estate as long-term investment assets and for wealth preservation,” explains Christine Sun, Chief Researcher and Strategist at OrangeTee & Tie. The increasing allocation of funds from family offices towards luxury residential properties further fuels this trend.
Factors Fueling the Shift
Several converging factors are driving this surge in local demand. The doubling of the Additional Buyer’s Stamp Duty (ABSD) in April 2023 undoubtedly played a role, prompting some foreign buyers to seek citizenship to mitigate the increased costs. However, the trend extends beyond simply avoiding taxes.
Geopolitical instability globally has positioned Singapore as a safe haven for wealth. Henley & Partners’ Private Wealth Migration Report estimates that 4,100 millionaires migrated to Singapore in the past two years, adding to the pool of potential high-end buyers. Coupled with a robust Singapore dollar, favorable interest rates, and a substantial increase in household cash reserves, locals now possess the financial firepower to invest in prime property as a store of value.
The Ultra-Luxury Segment: A Similar Story
The trend is even more pronounced at the ultra-luxury level (properties priced above $10 million). Mr. Mark Yip, CEO of Huttons Asia, notes that Singaporeans and Permanent Residents (PRs) are now overwhelmingly dominating demand in this segment. In October 2025, three out of four units sold for over $10 million went to Singaporeans, with a PR securing the remaining unit and setting a record price of $6,501 psf at Skywater Residences.
While foreign interest hasn’t entirely vanished – a Cambodian buyer recently purchased a unit at One Marina Gardens – it’s significantly diminished. Some foreign buyers are still willing to absorb the 60% ABSD, recognizing Singapore’s stability and strong currency, but they represent a smaller proportion of the market.
The Role of New Citizens and PRs
ERA Singapore’s CEO, Marcus Chu, highlights the contribution of newly minted citizens and PRs to local demand. However, he anticipates a potentially slower pace of transactions in the ultra-luxury segment as the pipeline of new launches in 2026 tests the depth of local appetite. Upcoming projects like Newport Residences, River Modern, and government land sales sites at Dunearn Road and Holland Link are expected to feature units exceeding the $5 million mark, with penthouses potentially surpassing $10 million.
What Does This Mean for the Future?
The dominance of local buyers isn’t merely a temporary phenomenon. It represents a structural shift in the Singapore luxury property market. Developers are already adapting, tailoring their offerings to cater to the preferences of Singaporean families – larger unit sizes, premium amenities, and a focus on long-term value.
Did you know? The average price per luxury unit in the CCR climbed to $10.09 million in Q3 2025, up from $9.73 million in the previous quarter, demonstrating the sustained upward pressure on prices.
Looking ahead, several key trends are likely to emerge:
- Increased Demand for Larger Units: Singaporean families prioritize space and comfort, driving demand for larger apartments and landed properties.
- Focus on Quality and Amenities: Buyers will increasingly seek properties with high-quality finishes, state-of-the-art amenities, and convenient locations.
- Emphasis on Long-Term Value: Property will be viewed primarily as a store of wealth and a legacy asset, rather than a short-term investment.
- Potential for Price Stabilization: While prices are expected to remain elevated, the depth of local demand will be tested by the influx of new launches in 2026, potentially leading to a period of stabilization.
Frequently Asked Questions
Q: Will foreign buyers completely disappear from the Singapore luxury market?
A: While their market share has significantly decreased, foreign buyers haven’t vanished entirely. Singapore’s reputation as a safe haven and its strong currency will continue to attract some international investors, even with the ABSD.
Q: What types of properties are most in demand among Singaporean buyers?
A: Larger apartments and landed properties in prime districts, offering space, privacy, and access to top-tier amenities, are currently the most sought-after.
Q: How will the new launches in 2026 impact the market?
A: The volume and pricing of units in upcoming launches will be a key indicator of the true depth of local demand. They will likely test the current price levels and potentially lead to a period of price stabilization.
Q: Is now a good time to invest in Singapore luxury property?
A: Given the strong local demand and the long-term investment potential, it remains a favorable time for Singaporeans and PRs to consider investing in luxury property, but careful due diligence and a long-term perspective are essential.
The Singapore luxury property market is at a pivotal moment. The shift towards local dominance is reshaping the landscape, creating both opportunities and challenges for buyers, sellers, and developers alike. Staying informed about these evolving dynamics is crucial for navigating this dynamic market successfully. Explore more insights on Singapore property investment trends in our comprehensive guide.
