Singapore’s luxurious property market noticed a pointy rebound within the first half of 2025, with gross sales of big-ticket flats and penthouses surging on the again of beneficial financing situations and a wave of high-profile launches. But, whereas the momentum seems robust, analysts warning that the rally could hinge on how lengthy right this moment’s unusually low rates of interest can maintain.
Desk of contents
- Luxurious rental gross sales leap 54% in H1 2025
- Protected-haven capital flows push curiosity decrease
- The rate of interest benefit: SORA slumps to 1.65%
- In distinction: Landed luxurious slows as GCB costs slip 12.8%
- Singapore poised to draw 1,600 millionaires in 2025
- Outlook: Sustained demand, however rate of interest wildcard stays
Luxurious rental gross sales leap 54% in H1 2025
Within the first half of 2025, luxurious condo transactions hit 45 items price S$584.3 million, CBRE reported. That was almost 54% greater than the identical interval final yr, and greater than double the S$228.4 million achieved within the latter half of 2024.
Flagship launches dominated the headlines. At 21 Anderson, 4-bedroom items fetched between S$20 million and S$24 million every — figuring out to eye-watering costs of S$4,672 to S$5,347 psf. Skywaters Residences set a contemporary benchmark when a 5-bedder modified fingers for S$30.9 million (S$5,841 psf). In the meantime, boutique challenge 32 Gilstead additionally noticed brisk gross sales, shifting seven 4-bedders at S$13-15 million apiece.
Learn extra: S$15M mark! Why this boutique rental in Novena retains breaking ATH data in District 11
The uplift has translated into firmer costs throughout the section. Common luxurious condo costs rose 6.2% year-on-year to S$3,736 psf in H1 2025, up from S$3,517 psf in 2024.
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The restoration isn’t simply confined to new launches. The resale market has proven stunning power, with 120 luxurious houses altering fingers in Q2 2025, nicely above the two-year quarterly common of 94 items, in response to OrangeTee-Realion.
Momentum from the first market typically spills over to resale, as patrons who miss out on new launches flip to current inventory. Rising resale volumes additionally assist set up greater benchmarks for pricing, making a suggestions loop that enhances general confidence within the luxurious section.
Who’s shopping for these luxurious condos?
In line with CBRE, “apart from prosperous locals, some ultra-high-net-worth people who (have) lately turn into new everlasting residents (PRs) or these holding overseas citizenships” have picked up extra large-format flats or penthouses, driving up the market.
Luxurious leases additionally decide up
Moreover, the rental market has mirrored this upward pattern. In line with Huttons Asia, common luxurious condo rents rose 4.6% in Q2 2025, reaching about S$15,300 monthly. Bigger 4-bedroom items noticed even quicker development, climbing almost 5% to round S$19,000 monthly. This resilience in rents supplies extra reassurance to traders in search of yield alongside capital appreciation.
Protected-haven capital flows push curiosity decrease
The revival comes in opposition to a broader backdrop of world uncertainty. Buyers have been lowering publicity to US greenback belongings after political shifts within the US earlier this yr, whereas fiscal pressures in Europe and the UK are holding their bond markets jittery. In distinction, Singapore’s robust fiscal standing, political stability, and regular forex appreciation bias make it a standout different.
Analysts be aware that this rebalancing of world capital has pushed safe-haven inflows into Singapore, Hong Kong, and Switzerland — all of which have seen native borrowing prices diverge from their US and European counterparts. In Singapore’s case, the inflow of funds has left the home system flush with liquidity, serving to to push short-term charges decrease.
The rate of interest benefit: SORA slumps to 1.65%
For patrons on the high finish of the property market, rates of interest matter greater than many assume. The three-month compounded Singapore In a single day Price Common (SORA), a key benchmark for floating-rate house loans, has fallen sharply this yr, dropping 137 foundation factors to only 1.65% as of August 22.
That shift interprets to vital financial savings for patrons financing luxurious properties. On a S$20 million mortgage, as an illustration, the distinction between a 3% and a 1.6% rate of interest may quantity to tons of of hundreds in annual repayments.
This has been a strong tailwind for luxurious gross sales in 2025. But the query now’s whether or not charges can fall additional. Singapore greenback rates of interest are already at a traditionally huge low cost in comparison with US greenback charges. Whereas inflows and ample liquidity have anchored SORA, analysts from DBS, OCBC, and UOB all consider the scope for additional decline is restricted.
UOB is forecasting the three-month compounded SORA will attain 1.74% in This fall 2025 and 1.63% for Q2 2026. In the meantime, Maybank expects charges will fall to about 1.5% by year-end and 1.2% by the tip of 2026.
Learn extra: SORA charge drop: What it means for homebuyers in 2025
In distinction: Landed luxurious slows as GCB costs slip 12.8%
Whereas luxurious condos are having fun with a growth, the landed section has slowed noticeably. Good Class Bungalow (GCB) transactions halved in H1 2025, with solely 14 offers price S$459.6 million. Common costs softened to S$2,122 psf, down 12.8% from 2024, largely as a result of extra offers occurred in fringe GCB areas like Caldecott Hill and Chestnut Avenue.
CBRE expects the lull to be momentary. With monetary markets rallying and borrowing prices decrease, there may be scope for GCB exercise to recuperate in H2 2025. However for now, the luxurious highlight is firmly on high-rise flats.
Singapore poised to draw 1,600 millionaires in 2025
The resurgence of the luxurious condo market underscores Singapore’s enduring enchantment. Not like many world cities the place luxurious property markets have been hampered by fiscal headwinds or political threat, Singapore provides traders a novel mixture of political stability, robust governance, a resilient forex, and a fame as a protected haven.
Mixed, these elements clarify why analysts count on some 1,600 millionaires to relocate to Singapore this yr — a structural tailwind for the property market.
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Outlook: Sustained demand, however rate of interest wildcard stays
The large query is whether or not the present gross sales momentum can maintain into 2026. On one hand, the basics stay supportive: extra launches are slated for the CCR within the second half of the yr, rental demand is wholesome, and capital inflows are unlikely to fade shortly given ongoing volatility elsewhere.
Alternatively, rate of interest dynamics may act as a governor. If SORA stabilises or ticks up, patrons could lose a number of the financing benefit that has spurred exercise in early 2025. Furthermore, the luxurious section stays extremely delicate to world shocks, whether or not from politics, forex swings, or fairness market corrections.
For now, although, the indicators level to continued resilience. So long as Singapore stays a magnet for wealth and maintains its fame as a monetary haven, the luxurious property market will possible keep in demand, even when rates of interest not fall as dramatically as they did within the first half of 2025.
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