Why there is demand for Singapore luxury homes
Even after years of cooling measures and rising interest rates, Singapore’s luxury property market shows no signs of fatigue. In the first nine months of 2025, 265 condominiums priced above S$5 million were sold — the highest figure in more than a decade.
Sales of ultra-luxury homes above S$10 million almost doubled to 44 units, while Good Class Bungalows (GCBs), the pinnacle of residential exclusivity, notched 16 transactions, including three above S$50 million.
These numbers raise a simple question: why does demand remain so strong?
Let’s look at the five main reasons driving it.
1. Rising local wealth and confidence
Singaporeans now account for nearly 60% of luxury property buyers, up sharply from past years when foreign demand dominated. With household wealth at record levels, many affluent locals are turning to property as a store of value amid global uncertainty. Unlike financial assets that fluctuate daily, a prime address feels stable, familiar, and resilient against inflation or currency swings.
2. Prestige and lifestyle value
Owning a luxury home in Singapore is as much about identity as investment. Addresses in Districts 9, 10 and 11 — from Orchard and Tanglin to Bukit Timah — continue to define social standing. Resale icons like Regency Park, Nassim Park, and St Regis Residences command loyal demand, not just for their space and greenery, but for the privacy and lifestyle they represent. For many families, these homes are multigenerational legacies.
3. Limited new supply in prime areas
Developers have been selective in land acquisitions, and en bloc activity has cooled. The result is a chronic shortage of new launches in the Core Central Region (CCR). Buyers who can afford it know they are competing for a small, finite pool of freehold and well-located homes. In real estate, scarcity breeds value — and in Singapore’s luxury segment, scarcity is now the rule, not the exception.
4. Relative value versus global cities
Compared with London, New York, or Hong Kong, Singapore’s luxury homes still offer relative value. A top-end condominium here typically trades at S$3,000 to S$4,000 per square foot, while equivalent properties overseas can exceed S$6,000 psf. Combined with the city’s political stability, clean governance, and absence of capital gains tax, Singapore remains a safe haven for both regional and global investors.
5. Long-term transformation and planning
The government’s urban renewal efforts continue to shape the city’s premium property landscape. Projects like the Greater Southern Waterfront, the Orchard Road rejuvenation, and the upcoming Rail Corridor upgrades promise to enhance liveability and connectivity. Buyers see these long-term plans as catalysts for appreciation — an assurance that Singapore’s core districts will keep evolving in value and desirability.
Conclusion
The demand for luxury homes is not a mystery. It stems from a mix of rising local affluence, enduring prestige, limited supply, relative global value, and long-term confidence in Singapore’s future. For investors, it’s a reminder that in this market, wealth seeks stability, and few assets deliver that better than a piece of prime Singapore real estate.
