2H 2025 Luxury Homes Report: Rise in Luxury Transactions Amid Favourable Interest Rates

In 2H 2025, we witnessed an uptick in luxury ($5m and above) and ultra-luxury ($10m and above) non-landed home transactions, building upon the resilient demand for such homes saw an uptick in luxury ($5m and above) and ultra-luxury ($10m and above) non-landed home transactions, building on the resilient demand for these homes in 1H 2025. This is the most significant number of luxury homes sold in half a year since 2022.

The continued uptake suggests that these purchasers demonstrate strong holding power, motivated by owner-occupancy rather than short-term speculative turnover.

Their preference is shaped by the lifestyle positioning and spacious layouts of luxury residences, with freehold developments remaining particularly appealing to those seeking long-term wealth preservation and less exposure to near-term risks.

The luxury home segment experienced its heyday before being affected by the increase in Additional Buyer’s Stamp Duty (ABSD) since 2023 and high-profile money-laundering cases. More importantly, buyers are seeking flight-to-safety opportunities in Singapore, given its reputation as an investor’s safe haven. 

Buyer confidence boosted by more optimistic economic outlook

Although the market took a breather in the second quarter of 2025 following US President Trump’s announcement of reciprocal tariffs and a potential trade war, the slowdown was only temporary. The tariffs announced on 2 April 2025, Liberation Day, caused volatility in global financial markets, prompting homebuyers to adopt a wait-and-see approach.

Despite economic uncertainties in 1H 2025, we observed resilient demand for luxury homes, with 218 such homes transacted. Nevertheless, the market quickly regained momentum in the following months as sentiment stabilised and buyers returned once the implications of the tariffs became clearer, leading to an increase in luxury home transactions, with 268 transactions as of 8 December 2025.

Chart 1: Number of non-landed luxury home transactions ($5m and above)

Singapore’s economy gained momentum in the third quarter of 2025, expanding by 2.9% year-on-year (y-o-y). This has already surpassed earlier forecasts of 1.5%-2% growth, which were clouded by concerns about ongoing U.S. tariffs. Consequently, the Ministry of Trade and Industry (MTI) upgraded the full-year forecast for 2025 to be "around 4%." 

Additionally, Singapore continued to see easing inflationary pressures. The Consumer Price Index in 3Q 2025 rose by 0.2% quarter-on-quarter. The inflation rate has remained stable, with quarterly growth fluctuating between 0% and 1% since 3Q 2023. 

Although household debt rose by 6.2% year-on-year in 2Q 2025, household net worth and residential property assets increased by 8.0% and 7.0% respectively, creating favourable conditions for Singaporeans to invest in luxury homes. 

Transaction Volume

Based on URA caveats as of 8 Nov 2025, we have observed a total of 267 luxury non-landed homes, including 26 ultra-luxury non-landed homes in 2H 2025. This accounts for a 38.3% rise from 1H 2025, which recorded a modest 193 transactions.

Out of the 267 luxury non-landed home transactions, 64.3% of buyers were Singaporeans, while Singapore Permanent Residents (SPRs) and foreign buyers made up 27.5% and 8.2% of transactions, respectively. 

Chart 2: Luxury and ultra-luxury home transactions

Skye at Holland – Popular project despite higher price quantum

Notably, 29 luxury home transactions were recorded at Skye at Holland, a new CCR launch in October. 

This is the only instance this year in which a development has sold this many luxury homes in a single month, let alone in its launch month.

These transactions involved 4-bedroom units (1,765 sq ft) and occurred between $5m and $6m. Despite a smaller floor area than a traditional 4-bedroom layout, Skye at Holland attracted many buyers in its launch month, owing to the rare opportunity to purchase a CCR 4-bedroom product at the $5m mark.

During its launch month, when nearly all units were sold, Skye at Holland achieved a median transaction price of $2,949 psf. With a prime CCR address, proximity to amenities and transport links, combined with an attractive price point, Skye at Holland managed to attract upgraders from nearby HDB estates and larger families familiar with the Holland area seeking a new home. This helped drive sales of its large-floor-plate luxury homes.

Ultra-luxury Non-landed Homes

In the second half of 2025, there have been 28 ultra-luxury homes (sold at $10m and above) transacted as of 8 December 2025, matching the total in the first half of 2025, and representing the highest combined total of ultra-luxury transactions since the first half of 2023. 

Ultra-high-net-worth buyers looking for a home are usually attracted to properties with desirable addresses in Districts 9, 10, and 11. Apart from location, they have specific preferences, such as favouring freehold units, larger floor areas, and extra bedrooms.

Some buyers were particularly seeking a new home, as many older developments may not fully satisfy their needs. Developments that meet all their criteria might have recently entered the market, including the launch of 21 Anderson in April 2025, which has encouraged buyers to proceed with their purchase. 

21 Anderson continued to dominate the ultra-luxury market, making up the top seven out of all ultra-luxury transactions. While 21 Anderson also recorded four transactions in the top ten in 1H 2025, this half of the year saw a pair of multi-storey penthouses transacted for over $52.3m, the highest in 2025.

The development aligns with the profile of ultra-luxury condos sought after in Singapore: a prime location in Districts 9, 10, and 11, with coveted addresses that appeal to ultra-high-net-worth buyers, including exclusive housing precincts such as Good Class Bungalow (GCB) gazetted areas.

Table 1: Top 10 Transactions of Non-Landed Homes

Singapore PRs continue to lead the Ultra-Luxury Market

Of the 28 transactions that took place in 2H 2025, almost half (around 48%) of them were made by Singapore PRs (SPRs), including the pair of $52.3m units purchased at 21 Anderson. Singaporean buyers accounted for approximately 41%, while foreign buyers accounted for 11% of the remaining transactions.

We have observed a notable increase in the number of SPRs purchasing ultra-luxury homes this year, who now constitute the largest segment of ultra-luxury home purchasers. Foreign buyers based in Singapore who have made significant economic contributions may have deferred their purchases until they have been granted PR status.

The ABSD rate for foreigners is a hefty 60%, while PRs only pay 5% on their first residential property purchase. Hence, some of these are likely newly minted PRs entering the market. With a large quantum, they can take advantage of the lower ABSD payable, which will be a substantial amount given the purchase quantum. 

Singapore Permanent Residents (SPRs) are generally not allowed to purchase landed homes unless they obtain special approval. Similarly, foreigners are not permitted to buy landed property at all, except in Sentosa Cove, where they require special approval.

Although foreign demand has decreased since the ABSD for foreigners was doubled to 60% in April 2023, some ultra-high-net-worth foreigners are still willing to proceed with their purchases when they find a suitable home, despite the higher tax.

Current Stock and Upcoming Launches

Given the sustained demand for luxury homes in 2025, we anticipate momentum will carry into 2026, with four developments likely to launch luxury homes in the first half of 2026.

Table 2: List of Upcoming developments with luxury homes

Although Dunearn Road and Holland Link’s GLS sites have not yet been officially announced as projects, their locations, land prices, and smaller unit counts are likely to result in the development of luxury projects.

Conclusion

To UHNW investors, purchasing a property is not solely for profit but also for the preservation of long-term wealth, guided by a set of clear criteria and attributes. Affluent buyers interested in luxury developments tend to be more discerning, often taking more time to carefully consider their options. Although they may have been exploring luxury properties for some time, there has been a lack of suitable offerings. Despite their strong interest, these buyers are often prepared to wait until they find a project that fully meets their requirements. 

Looking at the available stock in the market, the older projects in prime areas may be large but could lack enough rooms for larger families. With four luxury home developments expected to launch in 2026, there will be more options for high-net-worth buyers waiting patiently on the sidelines.

In the longer term, buying activity is unlikely to slow down. Singapore’s efforts to become a wealth hub, catering to both portfolio and foreign direct investment flows, will continue to attract family offices, financial institutions, and tech firms to set up here. Unless there are new or amended cooling measures, such as a reduction in foreigner ABSD, we can expect consistent demand for luxury homes, in line with ERA’s forecast of moderate price growth and transactions leading into 2026.