Ultra-luxury condo sales in Singapore see uptick in Q1 2025 despite economic headwinds

SINGAPORE – The ultra-luxury condominium market in the Republic appears to be regaining some traction, with 17 sales recorded in the first three months of 2025.

This is more than double the seven units sold in the same period in 2024, and more than both the 15 units sold in the first quarter of 2023 and the 14 sold in the same period in 2022, before the additional buyer’s stamp duty (ABSD) on foreign buyers was raised to 60 per cent in April 2023.

Urban Redevelopment Authority data showed that from January to May 22, 2025, there were 24 ultra-luxury condos – defined as units priced at $10 million and above in the core central region (CCR) – sold, exceeding the 17 units transacted in the first half of 2024.

Among the standout transactions in 2025 was a penthouse at Park Nova in Tomlinson Road, which changed hands for $38.888 million, or $6,593 per sq ft (psf) – the second-highest psf achieved.

The highest psf record still belongs to a 3,089 sq ft unit at The Marq on Paterson Hill, which was sold for $6,650 psf in November 2011.

Four deals exceeding $20 million each were recorded at 21 Anderson, a new freehold development by Kheng Leong, the real estate arm of the family of late banker Wee Cho Yaw. 

These high-end deals come as the economic outlook remains subdued. Singapore’s gross domestic product growth forecast for 2025

remains at a modest 0 per cent to 2 per cent,

reflecting broader global uncertainties.

OCBC Bank chief economist and head of treasury research and strategy Selena Ling noted that the ultra-rich may have different priorities when it comes to property investment.

“They will likely prioritise macroeconomic and political stability, currency and capital appreciation potential, as well as ability to transact smoothly (both purchase and sale), so short-term slower economic growth forecasts may not matter that much since the purchases are not funded by ongoing earned income but by stock of wealth,” she said.

She pointed to de-dollarisation as a market theme that is gaining traction. With investors looking into potentially moving away from US dollar assets, top-tier currencies like the Japanese yen, Swiss franc and Singapore dollar are becoming more attractive.

“At the end of the day, Singapore’s attractiveness is the Singapore dollar appreciation, limited land resources, affordable funding conditions and role as a financial hub,” said Ms Ling.

Still, market watchers cautioned that it is too early to call this a rebound in the ultra-luxury condo market, although the uptick in sales signals renewed interest in ultra-luxury homes.

“Recent data points to a pickup in ultra-luxury transactions, but it’s more a function of selective demand for standout projects than a broad-based recovery,” said Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc.

He cited sales at Park Nova and 21 Anderson as examples of how well-located, prestigious projects continue to attract high-net-worth individuals and investors. 

ERA Singapore chief executive Marcus Chu made similar observations, noting that many buyers in this segment often seek out specific features: freehold tenure, large floor area as well as multiple bedrooms.

This demand is being further fuelled by scarcity. Only 78 new units were launched in the CCR in the first three months of 2025, said Mr Sandrasegeran.

Upcoming projects such as W Residences – Marina View, The Robertson Opus and River Green could further invigorate interest in the second half of the year, he added.

Ms Christine Sun, chief researcher and strategist at OrangeTee Group, believes the ongoing global volatility may drive more capital into Singapore’s luxury homes.

Despite the recent 90-day tariff pause between the US and China, investors remain wary of renewed volatility.

“It depends on how the macroeconomic conditions evolve over the next few months, especially after the 90-day truce period. If the macroeconomic landscape remains uncertain due to increased global trade challenges arising from the tariff policies enacted by the United States, then demand for luxury units may continue to rise,” said Ms Sun.

“This is because many investors consider these luxury properties to be safe haven assets that can help preserve their wealth during economic uncertainties. Therefore, more investors may park their money in luxury homes, especially if there is fresh turmoil in the equities market.”

The luxury segment is also seeing a shift in buyer demographics. Prior to the ABSD increase in 2023, foreign buyers dominated top-tier condo purchases.

Now, local buyers – both citizens and permanent residents (PRs) – are playing a more prominent role in this segment. 

Of the 17 super-luxury condos sold in the first three months of 2025, five were purchased by Singapore citizens while eight were bought by PRs, said Ms Sun.

The numbers show that there is a mix of local residents and foreigners supporting the ultra-luxury market, she said.

Mr Chu said: “We have seen a notable increase in the number of Singapore permanent residents purchasing luxury homes this year. It is likely that some of them are newly minted PRs entering the market and would take advantage of the lower ABSD payable.”

Permanent residents pay 5 per cent ABSD on their first property, while citizens face 20 per cent ABSD only on their second property.

Buyers from the US, Iceland, Liechtenstein, Norway and Switzerland do not need to pay ABSD for their first residential home in Singapore.