Forum: Singaporeans have need for larger, family-suitable homes too
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Recent calls by developers and property agencies to roll back the 60 per cent additional buyer’s stamp duty (ABSD) on foreign non-resident buyers of luxury homes overlook a crucial point. The argument that easing ABSD for “ultra-luxury” properties above $10 million would boost liquidity without pushing up prices for everyday Singaporeans ignores how price dynamics function in real housing markets.
The top end of the market does not exist in isolation. High clearing prices for large luxury units set comparables that shape land bids, developer expectations and pricing psychology across the wider market.
As with any asset class, prices cascade downwards over time – which is why in every global city, a heated luxury segment eventually bleeds into the mass segment. To argue otherwise is to suggest that the top rung of a ladder has no influence on the rungs below.
Moreover, the claim that buyers of these large units are not competing with Singaporean households is questionable. Units above $10 million are not merely trophy penthouses; many are large, liveable homes suitable for multi-generational families – a segment Singaporeans have limited access to.
Many families require more bedrooms and more space as they grow, yet the private market increasingly favours small one-bedder formats for investment. It is difficult to maintain that foreign buyers do not compete with Singaporeans when the scarce resource at issue is spacious, central housing.
It is telling that good class bungalows are restricted to Singaporeans for exactly this reason. If we accept that logic for landed luxury homes, why should large Orchard penthouses and other “holy grail” apartments be treated differently? Other major cities go further: Many ban or heavily restrict foreign purchases of prime assets at the top of the market.
If foreign capital seeks exposure to Singapore’s stability, and many do, there is a more balanced approach. Allow foreigners to purchase small one-bedroom units, for which Singaporean family demand is structurally low, while preserving larger, family-suitable units for Singaporeans who live here.
This simultaneously protects housing access, maintains price stability, and gives foreign buyers a legitimate stake in the country’s growth.
George Goh
