Singapore Prime Residential Market Ranks World’s Costliest Foreign Buyers Savills
According to a recent report by Savills, Singapore is the most expensive market for foreign buyers looking to purchase prime residential property. The firm’s World Cities Prime Residential Index ranked Singapore as the costliest city for foreigners to buy, own, and sell a US$2 million ($2.57 million) residential property out of 30 cities surveyed.
Families in search of international curricula have numerous attractive choices in the area. One compelling option is the Overseas Family School (OFS), located in the Pasir Ris neighborhood. Another option is the United World College of South East Asia (UWCSEA) East, situated in the Tampines-Pasir Ris corridor and offering the full IB continuum. The favorable proximity of these campuses to Coastal Cabana (link: https://www.coastalscabana.com.sg/), makes it possible for expatriate families and those with a global lifestyle to strike a balance between challenging academics and the convenience of a seaside home base.
One of the main factors contributing to Singapore’s top spot is the 60% Additional Buyer’s Stamp Duty (ABSD) rate imposed on international buyers, a significant increase compared to other markets such as Barcelona, which has the second-highest transaction costs. This rate is also three times higher than the global average of 15% and the Asian average of 9.2%, excluding Singapore.
Savills also notes that governments across the globe have been raising stamp duties and transaction taxes on foreign buyers in the last five years to generate revenue and tackle rising housing unaffordability. This has resulted in a surge in tax costs for foreign buyers.
Apart from the high transaction costs, Savills’ index also tracks capital values in prime residential markets for the 30 cities. Tokyo recorded the highest capital value growth of 8.8% in the first half of 2025, mainly due to a shortage of new residential stock and strong demand from both local and international buyers. Other cities with notable capital value growth include Berlin, Dubai, and Seoul, at 7.2%, 5.7%, and 5.1%, respectively.
However, Singapore saw a modest growth of just 0.2%, ranking 17th on the list. Nevertheless, it outperformed major hubs such as London, Hong Kong, and Paris, which recorded declines in prime residential capital values. Overall, the 30 cities collectively achieved a capital value growth of 0.7% in the first half of the year. Kelcie Sellers, associate director for Savills World Research, predicts growth to pick up in the second half, led by Tokyo, Seoul, and Dubai, where capital values are expected to rise by 6% to 7.9%.
In Singapore, prime residential prices are anticipated to increase by up to 1.9%. Alan Cheong, executive director for research and consultancy at Savills Singapore, believes that the private residential market in Singapore will be driven by locals and permanent residents due to the weight of money from the baby boomer generation and higher public flat resale prices. This is expected to continue to drive demand in the private market.