The Dilemmas Facing Singapore’s Luxury Property Market: Elite Schools, Amenities, and Foreigner Taxes

Is the Luxury Market Struggling to Rebound? Core Central Region Home Sales Plunge 26.7% as Buyers Remain Cautious

Despite decent performances by select high-end launches recently, the overall recovery of the luxury residential market remains challenging. In Q2 2025, private home sales in the Core Central Region (CCR) fell 26.7% quarter-on-quarter, indicating that the high-end segment continues to grapple with headwinds.

Meanwhile, the government continues to inject private housing supply into the city centre, but macroeconomic uncertainties and hefty Additional Buyer's Stamp Duty (ABSD) rates remain the primary hurdles keeping high-net-worth buyers on the sidelines.

Luxury Market Softens, Several CCR Launches Face Muted Demand

In Q2 2025, 638 private residential units were sold in the CCR, down 26.7% from 870 units in Q1. Islandwide private home sales also dropped concurrently from 7,246 units to 4,808 units, representing a 33.7% decline.

Several prime luxury projects have similarly seen lacklustre take-up:

W Residences Singapore Marina View: Moved only two units during its preview phase, with prices starting from $3,200 psf;

Skywaters Residences (8 Shenton Way): Sold only 2 units within a year, averaging around $5,000 psf;

Newport Residences: Originally slated for launch in April 2023, the preview has been deferred for over two years due to subdued market conditions.

Select Standout Projects Inject Market Confidence

Nevertheless, a handful of fresh launches delivered stellar performances, injecting a dose of confidence into the market:

UpperHouse@Orchard Boulevard: Sold over 53.8% of its units during its launch weekend;

The Robertson Opus: Moved more than 41% of units in its first week.

While the broader market remains soft, prime properties in premier locations continue to demonstrate enduring appeal.

Analysts: CCR Sales Share Rises Steadily, Market Retains Upside Potential

Despite the drop in absolute sales volume, CCR transactions accounted for an expanding share of total islandwide sales:

Q4 2024: 10.4%

Q1 2025: 12%

Q2 2025: 13.3%

This suggests that high-net-worth buyers continue to view luxury private properties as resilient assets for wealth preservation and capital allocation.

CBD Shortcomings: Lack of Top Schools, Parks, and Community Amenities

Analysts note that while the Central Business District (CBD) offers prime connectivity, it lacks prestigious schools, green spaces, and family-friendly amenities that domestic buyers prioritise. Compounded by the punitive 60% ABSD on foreign buyers, this has further dampened the appeal of luxury homes in the CBD.

The government's release of residential land in Orchard and Newton is geared more towards attracting Singapore Citizens and Permanent Residents. In the current market, location attributes, lifestyle amenities, and transport connectivity remain paramount in winning over buyers.

Time to Reassess the ABSD Policy?

The elevated ABSD rate may inadvertently deter top global talent from putting down roots in Singapore. Analysts suggest that once property prices stabilise, the government could consider reviewing the policy's impact on the nation's long-term global competitiveness.

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