Singaporeans’ Appetite for Luxury Homes Is Stronger Than You Think

Rise of Singapore's Wealthy: Local Buyers Officially Take Centre Stage in the Luxury Market

A significant structural shift is underway in Singapore's luxury property segment: the primary driver of demand has quietly transitioned from foreign ultra-rich to affluent locals. Bolstered by stronger purchasing power, calibrated cooling measures, and a sustained influx of global wealth into the city-state, local high-net-worth individuals (HNWIs) are emerging as the anchor of the luxury residential market, set to dictate its trajectory for years to come.

According to the latest luxury residential market report, 171 luxury homes priced at $5 million and above were transacted in the third quarter of this year. Remarkably, Singapore Citizens accounted for 130 of these transactions—or a whopping 76%—up from 70.2% in the preceding quarter.

This trend has held steady throughout the year: in the first three quarters, Singapore Citizens snapped up 331 luxury properties, representing 72.3% of total transactions—a marked increase from 67.7% over the same period last year.

For a luxury segment historically dominated by foreign buyers, this represents a notable and pivotal turning point.

Rise of the Local Affluent: A New Protagonist in the Luxury Market

The surging proportion of Singapore Citizens purchasing luxury homes is a telling development.

Historically, Core Central Region (CCR) luxury properties were predominantly anchored by foreign investors and ultra-high-net-worth individuals. However, an influx of affluent local households stepping into the market in recent years is rapidly reshaping its landscape.

This highlights two key realities: First, Singapore's affluent demographic is expanding rapidly. Sustained wealth creation, entrepreneurial success, and capital appreciation have enabled more local buyers not only to afford luxury real estate, but also to view it as a resilient long-term investment amidst global economic uncertainties.

Second, the appeal of luxury homes is being reappraised locally. Singaporean buyers no longer see prime properties merely as trophy assets or luxury goods, but as crucial vehicles for capital preservation, inflation hedging, and generational wealth transfer.

After all, a $5 million price tag remains a formidable threshold for most buyers. Yet today, an increasing number of locals are effortlessly crossing it.

Foreign Buyers Retreat: The Potent Impact of 60% ABSD

Another pivotal catalyst driving the rising share of local buyers is the sharp retreat of foreign purchasers.

Data reveals that in the first three quarters of 2023, foreigners acquired 106 luxury homes, accounting for 25.2% of deals.

However, following the hike in Additional Buyer's Stamp Duty (ABSD) to 60%, foreign purchases plunged to just 23 units in the first nine months of 2024—a steep decline of nearly 80%, shrinking their market share to a mere 6.7%.

The transformation of the luxury market from a playground for foreigners to a local stronghold unfolded within barely a year. This shift is no accident, but the direct fallout of the 60% ABSD. Concurrently, a segment of these luxury purchasers consists of newly naturalised Singapore Citizens who have accelerated their relocation here against a backdrop of global geopolitical volatility.

An estimated 4,100 millionaires relocated to Singapore over the past two years, injecting fresh momentum into prime property demand.

Luxury Transaction Volumes Rebound: Local Share Poised to Surpass 80%

Transaction volumes for luxury homes in the Core Central Region are projected to hit between 3,800 and 4,200 units this year, marking a high since 2022. Singapore Citizens and Permanent Residents (PRs) will continue to anchor the luxury residential space, with local market share anticipated to cross the 80% mark next year.

Here, "local buyers" encompass high-net-worth Singapore Citizens, PRs, and newly naturalised citizens settled in Singapore.

Upcoming flagship launches next year such as River Modern and Newport Residences will sustain the momentum of the luxury sector, continuing to magnetise high-net-worth buyers. As long as Singapore reinforces its standing as a premier global wealth management hub, CCR luxury homes will consistently remain a prime target for the affluent, whether local or international.

Structural Reshaping of Luxury Real Estate: The Era of Local Wealth Has Arrived

Three overarching trends are unfolding simultaneously:

1. The purchasing power of local affluent individuals continues to strengthen, with more Singaporeans willing and capable of acquiring properties above the $5 million threshold.

2. Foreign buyers have been structurally filtered out by policy and transaction costs, as the punitive 60% ABSD deters the vast majority of overseas investors.

3. Global wealth continues to flow into Singapore, with more HNWIs sinking roots and driving sustained long-term demand. The prime residential market is no longer dictated by foreign capital, but rather spearheaded by Singapore's homegrown elite.

Moving forward, competition in the luxury private residential segment will increasingly centre around local buyers, while prime CCR enclaves will continue to command capital and attention.