How does a city-state smaller than New York City sustain a luxury apartment market valued at $46.58 billion in 2025, with projections pointing toward continued expansion through 2033? The answer lies in a potent combination of limited supply, wealthy buyers, and Singapore’s magnetic appeal as a global financial hub.
The luxury segment is outperforming other market categories, driven primarily by high-net-worth individuals who view premium properties as both status symbols and investment vehicles. What’s particularly telling is that only 51% of luxury homebuyers in 2025 purchased properties as primary residences, revealing that roughly half are treating these multi-million-dollar assets as secondary homes or pure investments. These aren’t starter condos—luxury non-landed properties start at $5 million and feature minimum sizes of 2,000 square feet in Singapore’s core central region.
Only 51% of Singapore’s luxury homebuyers in 2025 purchased properties as primary residences—the rest are pure investment plays.
Foreign investment continues fueling demand alongside Singapore’s increasingly affluent local population. The scarcity factor cannot be overstated, with just 14,859 unsold, uncompleted private homes in the pipeline at the end of Q4 2025—the lowest level in 15 quarters. This 12.7% quarterly decline in unsold inventory is creating exactly the kind of supply constraint that supports price appreciation in premium segments.
The rental market tells an equally compelling story. Luxury non-landed rents climbed approximately 2% in 2025, rebounding after a 4.3% decline in 2024. Properties near MRT stations and commercial hubs command rental premiums, attracting tenants despite stratospheric price points. Overall non-landed private rental contracts reached approximately 82,000 in 2025, up 0.6% from the previous year. Private residential rents had fallen by 1.9% in 2024 before stabilizing in 2025, marking a broader market adjustment from the exceptional growth rates of previous years.
Looking ahead, supply will gradually increase with 7,006 private homes projected to receive temporary occupation permits in 2026, expanding to 10,195 units by 2028. Yet this controlled expansion, combined with lower interest rates and Singapore’s strengthening position as a technology and finance powerhouse, suggests the luxury segment will maintain momentum. Developers are adapting too, integrating smart home technologies and sustainable building practices to meet evolving buyer expectations in a market where exclusivity remains the ultimate currency. The broader market is projected to grow at a 6.57% CAGR from 2025 to 2033, reflecting sustained optimism across all property segments. Despite cooling measures aimed at moderating demand, high-end transactions have rebounded to pre-regulation levels, demonstrating the resilience of Singapore’s luxury property sector.
