Singapore Luxury Residential Market Shows Signs of Recovery in H1 2025 Amid Economic Volatility

Singapore – 27 August 2025 – CBRE’s Singapore Luxury Residential Market H1 2025 Figures Report revealed a mixed performance across key luxury segments. While Good Class Bungalow (GCB) and Sentosa Cove transactions remained subdued, luxury apartment sales saw a strong rebound, supported by new launches and lower interest rates.

GCB Market Softens but Poised for Recovery

In H1 2025, 14 GCBs worth $459.63 million were transacted, marking a 46.9% decline from H2 2024 but at a similar level when compared year-on-year. Average GCB prices moderated to $2,122 psf, down 12.8% from 2024, as more transactions occurred in fringe GCB areas such as Caldecott Hill Estate and Chestnut Avenue.

Linda Chern, CBRE Head of Residential Services, Singapore, observed, “Despite lower interest rates, heightened geopolitical tensions and persistent trade frictions dampened buyer sentiment, prompting a wait-and-see approach. Many potential buyers have chosen to rent for now while they monitor the market for more certain indications.”

Rental demand for GCBs rebounded, with median rents rising 3.0% year-on-year, outperforming the broader luxury residential market. This recovery follows the resolution of the high-profile money laundering case and a correction in rental prices in 2024.

Tricia Song, CBRE Head of Research, Singapore and Southeast Asia, shares her outlook, “Looking ahead, CBRE expects market momentum to pick up in H2 2025, driven by lower interest rates, a rally in financial markets, and increased listings from owners with weaker holding power. The recent revision to Seller’s Stamp Duty is expected to have limited impact on the GCB segment, which is largely driven by long-term owner-occupiers.”

Sentosa Cove Market Remains Muted

The Sentosa Cove market remained relatively quiet in H1 2025. Only two bungalow transactions were recorded, totalling $26.95 million, a 90.4% increase from H2 2024 but still below historical norms. Average land rates declined slightly to $1,767 psf, down 2.5% from 2024.

Condominium activity was stable, with 35 units transacted for $134.83 million, similar to H2 2024. Prices held steady at $1,794 psf. While some overhang from seized properties has been cleared, ultra-high-net-worth (UHNW) buyers continue to favour luxury homes on the mainland.

Luxury Apartments Lead the Recovery

Luxury apartment sales surged in H1 2025, with 45 units transacted for $584.26 million, up 155.8% half-on-half and 53.9% year-on-year. The average price rose 6.2% to $3,736 psf, driven by new launches and favourable financing conditions.

Ms Chern expects the positive momentum to continue into H2 2025, supported by new launches in the Core Central Region such as Upper House at Orchard Boulevard. Demand is also being driven by newly minted PRs and citizens who benefit from lower Additional Buyer’s Stamp Duty (ABSD).

CBRE expects 2025 luxury apartment volumes to surpass 2024’s volumes of $608.17 million.

Outlook

“Despite global uncertainties, Singapore’s luxury residential market, and possibly even the wider real estate market, continues to demonstrate resilience,” said Ms Song, continuing, “The rebound in luxury apartment sales and GCB rentals signals renewed confidence, and we anticipate further recovery in H2 2025 as market fundamentals and confidence levels remain strong.”