When Savills released its latest World Cities Prime Residential Index, one city stood out for all the wrong reasons — or perhaps, depending on perspective, for all the right ones.
Singapore was ranked as the most expensive city in the world for foreigners to buy, hold, and sell a prime residential property worth US$2 million. The numbers are staggering. A foreign buyer here faces a 60% Additional Buyer’s Stamp Duty (ABSD) on the purchase price, three times higher than Barcelona — the next costliest market — and more than six times the global average of 15%.
To put it bluntly, if you’re a foreign investor looking to dip into Singapore’s prime residential market, the barrier to entry is astronomical. Which leads to an inevitable question: with such high costs and modest recent growth, are prime private residential properties in Singapore even a good investment?
The Price of Entry: Sticker Shock for Foreign Buyers
The Savills analysis makes clear just how exceptional Singapore’s position is. The total cost of buying, holding, and selling a US$2 million property in Singapore towers above other cities. Foreign buyers here shoulder upfront transaction costs that can exceed 60% of the purchase price, compared to just under 20% in global cities like London or New York.
The policy intent is transparent. By imposing such steep taxes, Singapore has effectively priced out speculative foreign demand, especially at the top end of the market. For comparison:
This sharp divergence is no accident. It reflects a decade-long effort to keep housing affordable for locals while ensuring financial stability. But from a pure investment standpoint, it raises an uncomfortable reality: the higher your entry costs, the harder it is to generate attractive returns.
Capital Growth Reality Check
The challenge for investors is compounded by muted capital appreciation. According to Savills, Singapore’s prime residential market registered just 0.2% growth in the first half of 2025, placing it 17th out of the 30 cities surveyed.
By contrast:
Even Lisbon and Cape Town — markets far smaller than Singapore — outpaced it. On the face of it, this suggests that Singapore prime residential may not be the most compelling investment vehicle, especially for those chasing rapid capital appreciation.
Yet this conclusion risks missing the bigger picture.
Why Buyers Still Buy: The Stability Premium
If you measure investment success only in terms of short-term growth, Singapore looks underwhelming. But that overlooks the city-state’s greatest strength: stability.
In a world where markets swing wildly — from double-digit growth spurts in Dubai to sudden corrections in London or Hong Kong — Singapore stands out for its consistency. The very policies that make entry costs punishing also shield the market from volatility. Prices may not soar, but neither do they crash.
This “stability premium” has become the defining feature of Singapore prime residential. For ultra-high-net-worth individuals and family offices, the calculus is simple: you’re not buying for speculation. You’re buying for preservation. The high cost is the price of political security, currency stability, and regulatory certainty — three things increasingly scarce elsewhere.
Local Wealth Driving the Market
Another often-overlooked factor is that Singapore’s prime residential market is no longer dependent on foreign inflows. In fact, the bulk of demand today comes from locals and permanent residents (PRs).
This shift has profound implications for investment value:
The result is a market underpinned by structural domestic demand, rather than fickle international capital. This insulates Singapore from the boom-and-bust cycles seen in other prime cities.
Investment Performance: A Two-Speed Market
So, are prime private residential properties in Singapore a good investment? The answer depends on who you are.
Thus, the same asset class is simultaneously a poor speculative bet for foreigners and a steady, legacy-building vehicle for locals.
Global Comparison: Growth vs Risk
Looking at the Savills data, we see three broad categories of prime cities:
In this sense, Singapore prime residential is less comparable to Dubai or Tokyo than it is to gold — a safe haven rather than a growth engine.
Forward Outlook: H2 2025 and Beyond
Savills forecasts that Singapore’s prime capital values could rise by up to 1.9% in the second half of 2025. That’s far from the 6–7.9% expected in Tokyo or Seoul, but it underlines the market’s slow-and-steady trajectory.
Demand in the prime segment is expected to remain underpinned by locals and PRs, supported by the wealth effect from baby boomers and elevated HDB resale prices. This highlights how Singapore’s prime market is anchored by domestic liquidity rather than foreign speculation.
Longer-term, Singapore’s fundamentals remain intact: limited land supply, strong governance, and an economy designed to attract talent and capital. While the headline numbers may not excite speculative investors, they promise resilience in a world of uncertainty.
Conclusion: Answering the Investment Question
So, back to the question: are prime private residential properties a good investment in Singapore?
In that sense, Singapore’s prime residential market is not just the costliest — it’s also one of the most deliberate. The high cost of entry is not a flaw but a filter, ensuring that only those who value stability, safety, and certainty enter.
And in an increasingly uncertain world, perhaps that is the ultimate investment.
Thinking about entering Singapore’s prime residential market, or exploring your options across other segments of the property landscape? Our experienced sales consultants are here to guide you with data-driven insights and tailored advice. Click here to connect with our team and take the next step with confidence.
