For decades, the image of Singapore’s ultra-luxury property market—specifically homes priced above the S$5 million mark—was dominated by the international elite. It was the playground of global billionaires, foreign family offices, and investors seeking a safe harbor for their capital. However, as 2025 draws to a close, a distinct and undeniable shift has solidified.
According to the latest market data from the third quarter of 2025, the narrative has flipped. Local wealth is no longer just a participant in the top-tier segment; it is the dominant force.
The Numbers: A Domestic Takeover
The most recent figures released in November 2025 paint a stark picture of this new reality. In the third quarter of 2025 (July to September), there were 171 transactions for landed and non-landed homes priced at S$5 million and above in the Core Central Region (CCR). Of these high-value transactions, 130 were made by Singaporeans.
To put this in perspective:
- Singaporeans accounted for roughly 76% of these top-tier purchases.
- This is a significant increase from 70% in Q2 2025 and 72.5% in the same period a year ago (Q3 2024).
- In contrast, foreign buyer participation has plummeted to record lows, hovering between 1% and 7% depending on the specific month and property type.
This is not a statistical anomaly; it is a structural change. As Mark Yip, Chief Executive of Huttons Asia, noted in recent reports, the market has seen months where foreigners accounted for as little as 1.3% of buyers in the luxury segment.
The Catalyst: The 60% Wall
The primary driver of this shift is arguably the most aggressive cooling measure in Singapore’s history: the April 2023 hike in Additional Buyer’s Stamp Duty (ABSD).
When the government raised the ABSD rate for foreigners from 30% to 60%, it effectively created a massive barrier to entry. For a $6 million in tax alone—a premium that has understandably cooled international demand.
However, the resilience of the transaction volume—which actually rose by over 20% in Q3 2025 compared to the previous quarter—proves that the market did not collapse without foreign money. Instead, local capital stepped in to fill the void.
Who Are These Singaporean Buyers?
The label “Singaporean” in this bracket covers a diverse demographic, but analysts point to three main profiles driving these purchases:
- Old Money and Wealth Preservation: Many buyers are multi-generational Singaporeans utilizing real estate as a store of value. With global economic uncertainty, local bricks-and-mortar assets in prime districts like Orchard, Nassim, and Bukit Timah remain a preferred hedge against inflation.
- The “New” Singaporeans: A significant portion of this “local” demand comes from Ultra-High-Net-Worth Individuals (UHNWIs) who have naturalized. These are formerly foreign investors who, motivated by Singapore’s stability and the prohibitive ABSD for foreigners, have taken up citizenship. Once they convert to citizens, the ABSD burden drops significantly, unlocking their purchasing power.
- HDB Upgraders and Asset Recycling: While less common in the >S$5M bracket than the mass market, there is a segment of successful entrepreneurs and professionals recycling capital from previous property gains into higher-tier assets.
Hotspots and Key Projects
The data also highlights where this money is flowing. The momentum in late 2025 has been supported by specific high-profile launches and resilient resale demand.
Projects such as 21 Anderson and Watten House contributed significantly to the transaction volume in Q3 2025. In particular, freehold luxury projects continue to command a premium, with reports noting transactions at 21 Anderson crossing the S$20 million mark—deals that were predominantly snapped up by locals and Permanent Residents (PRs).
Furthermore, the total value of these luxury transactions is rising. The sales value of CCR homes transacted above S$1.725 billion in Q3 2025.
The Outlook for 2026
What does this mean for the future of Singapore’s property market?
This “domestic-led momentum” is likely to shape the next wave of luxury launches in 2026. Developers can no longer build solely with the jet-setting global investor in mind. Product sizing, amenities, and pricing strategies must now cater to the tastes and needs of the wealthy local buyer.
While the door remains open for foreigners (particularly those from countries with Free Trade Agreements like the USA, who enjoy the same stamp duty treatment as nationals), the data is clear. The era of foreign dominance in Singapore’s luxury residential market has been paused, if not ended.
For now, the keys to Singapore’s most exclusive homes are firmly in the hands of Singaporeans.
