While the broader economic forecast for Singapore predicts a sluggish growth rate of 0-2% for 2025, the ultra-luxury real estate market is busy writing a completely different success story. Investors are proactively shrugging off the gloom, viewing high-end property as a reliable, tangible safe haven amidst persistent global trade tensions and equity market turmoil.
The data supports this strong optimism, as seventeen ultra-luxury condos were sold in the first quarter of 2025 alone, effectively doubling the seven units transacted in early 2024. This impressive activity even comfortably outpaced the volume seen in the first quarters of 2022 and 2023, proving that considerable accumulated wealth often operates independently of general economic stagnation.
Between January and late May, twenty-four units priced over $10 million were sold in the Core Central Region, exceeding the seventeen recorded in the first half of the previous year. By the end of the first half of 2025, forty-five luxury apartments had transacted for a combined $584.3 million, a massive 54% jump year-on-year.
Notable transactions fueled this surge, including a Park Nova penthouse that sold for $38.888 million. At $6,593 per square foot, this price narrowly missed the historical record set by The Marq in 2011. Similarly, the freehold 21 Anderson development recorded four separate deals exceeding $20 million each, proving buyers remain eager to secure spacious, high-value assets.
Buyer demographics have shifted markedly, as local citizens and permanent residents now dominate the market following 2023 tax hikes for foreigners. Of the seventeen Q1 sales, five were by citizens and eight by permanent residents, with many newly minted residents taking advantage of lower duties. Furthermore, investors from specific treaty nations like the United States and Iceland remain exempt from ABSD on their first residential purchase.
Supply scarcity further drives competition, as only 78 new units launched in the prime districts recently. Buyers appear to be waiting for interest rate reductions before committing to purchases, similar to trends observed in August’s condo resale market. This lack of new inventory creates urgency. New developments such as River Green and The Robertson Opus are expected to further boost market activity. With average prices rising 6.2% to $3,736 per square foot, the market remains robust.
CBRE predicts sales will top $608.2 million for the full year, driven by lower interest rates and a desire for stability. While the economy crawls, the luxury sector sprints ahead, fueled by deep pockets that prioritize tangible assets over temporary uncertainty.
