Singapore Prime Residential Market Ranks World’s Costliest Foreign Buyers Savills
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Savills’ latest World Cities Prime Residential Index report has revealed that Singapore is the most expensive market for foreign buyers to purchase prime residential property. Among 30 cities monitored, Singapore tops the list in terms of the cost for a foreigner to buy, own, and sell a US$2 million residential property.
The primary reason for Singapore’s position as the most expensive city for foreign buyers is the 60% Additional Buyer’s Stamp Duty rate that is applicable on the purchase price for international buyers, according to Savills. This transaction cost is three times higher than the next most expensive market, Barcelona, and significantly above the global average of 15% and the Asian average of 9.2%, excluding Singapore.
The report also notes that tax costs have risen in global markets over the last five years, as governments have gradually increased stamp duties and transaction taxes on foreign buyers to raise revenue and address rising housing unaffordability.
Further findings from the report focus on the World Cities Prime Residential Index, which tracks capital values in prime residential markets for the 30 cities. Tokyo has emerged as the city with the highest capital value growth in the first half of 2025, at 8.8%. This is due to the limited supply of new properties and strong demand from both domestic and international buyers.
Berlin, Dubai, and Seoul also saw significant capital value growth in the first half of the year, at 7.2%, 5.7%, and 5.1%, respectively. In comparison, Singapore’s capital value growth was only at 0.2%, ranking 17th on the list. However, it outperformed major hubs such as London, Hong Kong, and Paris, which all recorded falls in prime residential capital values.
Overall, the 30 cities collectively achieved a capital value growth of 0.7%. While this is lower than the 2.2% growth recorded in 2024, it still shows positive growth, with 60% of cities experiencing gains in the first half of the year. Savills’ associate director for World Research, Kelcie Sellers, attributes this trend to the fact that cities with negative price growth are usually the larger ones where residential properties are more costly to obtain.
Looking ahead, Savills predicts that growth will pick up in the second half of the year, driven by Tokyo, Seoul, and Dubai, which are all expected to see capital value growth between 6% to 7.9%. Dubai, Lisbon, and Sydney are also projected to see healthy growth rates ranging from 4% to 5.9%. In Singapore, prime residential prices are expected to rise by up to 1.9%, with a strong demand from locals and permanent residents. According to Savills Singapore’s executive director for research and consultancy, Alan Cheong, the private residential market in Singapore will continue to be driven by the weight of money from the baby boomer generation and higher public flat resale prices.