Singapore’s luxury property market saw a sharp rebound in the first half of 2025, with sales of big-ticket apartments and penthouses surging on the back of favourable financing conditions and a wave of high-profile launches. Yet, while the momentum looks strong, analysts caution that the rally may hinge on how long today’s unusually low interest rates can hold.
Table of contents
- Luxury condo sales jump 54% in H1 2025
- Safe-haven capital flows push interest lower
- The interest rate advantage: SORA slumps to 1.65%
- In contrast: Landed luxury slows as GCB prices slip 12.8%
- Singapore poised to attract 1,600 millionaires in 2025
- Outlook: Sustained demand, but interest rate wildcard remains
Luxury condo sales jump 54% in H1 2025
In the first half of 2025, luxury apartment transactions hit 45 units worth S$584.3 million, CBRE reported. That was nearly 54% higher than the same period last year, and more than double the S$228.4 million achieved in the latter half of 2024.
Flagship launches dominated the headlines. At 21 Anderson, 4-bedroom units fetched between S$20 million and S$24 million each — working out to eye-watering prices of S$4,672 to S$5,347 psf. Skywaters Residences set a fresh benchmark when a 5-bedder changed hands for S$30.9 million (S$5,841 psf). Meanwhile, boutique project 32 Gilstead also saw brisk sales, moving seven 4-bedders at S$13-15 million apiece.
Read more: S$15M mark! Why this boutique condo in Novena keeps breaking ATH records in District 11
The uplift has translated into firmer prices across the segment. Average luxury apartment prices 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 recovery isn’t just confined to new launches. The resale market has shown surprising strength, with 120 luxury homes changing hands in Q2 2025, well above the two-year quarterly average of 94 units, according to OrangeTee-Realion.
Momentum from the primary market often spills over to resale, as buyers who miss out on new launches turn to existing stock. Rising resale volumes also help establish higher benchmarks for pricing, creating a feedback loop that boosts overall confidence in the luxury segment.
Who is buying these luxury condos?
According to CBRE, “besides affluent locals, some ultra-high-net-worth individuals who (have) recently become new permanent residents (PRs) or those holding foreign citizenships” have picked up more large-format apartments or penthouses, driving up the market.
Luxury rentals also pick up
Additionally, the rental market has mirrored this upward trend. According to Huttons Asia, average luxury apartment rents rose 4.6% in Q2 2025, reaching about S$15,300 per month. Larger 4-bedroom units saw even faster growth, climbing nearly 5% to around S$19,000 per month. This resilience in rents provides additional reassurance to investors seeking yield alongside capital appreciation.
Safe-haven capital flows push interest lower
The revival comes against a broader backdrop of global uncertainty. Investors have been reducing exposure to US dollar assets after political shifts in the US earlier this year, while fiscal pressures in Europe and the UK are keeping their bond markets jittery. In contrast, Singapore’s strong fiscal standing, political stability, and steady currency appreciation bias make it a standout alternative.
Analysts note that this rebalancing of global capital has driven safe-haven inflows into Singapore, Hong Kong, and Switzerland — all of which have seen local borrowing costs diverge from their US and European counterparts. In Singapore’s case, the influx of funds has left the domestic system flush with liquidity, helping to push short-term rates lower.
The interest rate advantage: SORA slumps to 1.65%
For buyers at the top end of the property market, interest rates matter more than many assume. The three-month compounded Singapore Overnight Rate Average (SORA), a key benchmark for floating-rate home loans, has fallen sharply this year, dropping 137 basis points to just 1.65% as of August 22.
That shift translates to significant savings for buyers financing luxury properties. On a S$20 million mortgage, for instance, the difference between a 3% and a 1.6% interest rate could amount to hundreds of thousands in annual repayments.
This has been a powerful tailwind for luxury sales in 2025. Yet the question now is whether rates can fall further. Singapore dollar interest rates are already at a historically wide discount compared to US dollar rates. While inflows and abundant liquidity have anchored SORA, analysts from DBS, OCBC, and UOB all believe the scope for further decline is limited.
UOB is forecasting the three-month compounded SORA will reach 1.74% in Q4 2025 and 1.63% for Q2 2026. Meanwhile, Maybank expects rates will fall to about 1.5% by year-end and 1.2% by the end of 2026.
Read more: SORA rate drop: What it means for homebuyers in 2025
In contrast: Landed luxury slows as GCB prices slip 12.8%
While luxury condos are enjoying a boom, the landed segment has slowed noticeably. Good Class Bungalow (GCB) transactions halved in H1 2025, with only 14 deals worth S$459.6 million. Average prices softened to S$2,122 psf, down 12.8% from 2024, largely because more deals occurred in fringe GCB areas like Caldecott Hill and Chestnut Avenue.
CBRE expects the lull to be temporary. With financial markets rallying and borrowing costs lower, there is scope for GCB activity to recover in H2 2025. But for now, the luxury spotlight is firmly on high-rise apartments.
Singapore poised to attract 1,600 millionaires in 2025
The resurgence of the luxury apartment market underscores Singapore’s enduring appeal. Unlike many global cities where luxury property markets have been hampered by fiscal headwinds or political risk, Singapore offers investors a unique mix of political stability, strong governance, a resilient currency, and a reputation as a safe haven.
Combined, these factors explain why analysts expect some 1,600 millionaires to relocate to Singapore this year — a structural tailwind for the property market.
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Outlook: Sustained demand, but interest rate wildcard remains
The big question is whether the current sales momentum can sustain into 2026. On one hand, the fundamentals remain supportive: more launches are slated for the CCR in the second half of the year, rental demand is healthy, and capital inflows are unlikely to fade quickly given ongoing volatility elsewhere.
On the other hand, interest rate dynamics could act as a governor. If SORA stabilises or ticks up, buyers may lose some of the financing advantage that has spurred activity in early 2025. Moreover, the luxury segment remains highly sensitive to global shocks, whether from politics, currency swings, or equity market corrections.
For now, though, the signs point to continued resilience. As long as Singapore remains a magnet for wealth and maintains its reputation as a financial haven, the luxury property market will likely stay in demand, even if interest rates no longer fall as dramatically as they did in the first half of 2025.
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