You've heard the headlines: Singapore's property market in 2025 is treading cautiously with the risk of a technical recession, and buyers taking their time and sellers holding firm. Yet beneath that calm surface, there's a particular segment that's been quietly moving - the luxury condominium market.Source: The Straits TimesWhile it may not be experiencing a full-blown surge, the luxury segment is showing signs of subtle yet steady momentum. In Q1 2025, ultra-luxury transactions more than doubled compared to the same period last year. Among these, a $38.888 million penthouse at Park Nova - sold at the second-highest PSF on record - has turned heads not only for its price tag but for what it signals: a quiet confidence in high-end property, even amidst economic uncertainty.But what exactly defines a luxury condo in Singapore today? Who are the buyers still willing to commit millions for a prime unit in Orchard, River Valley, or Marina Bay? Is now the right time to buy? And what's keeping demand alive despite high interest rates and cooling measures? In this article, we will explore: What does 'luxury' really mean in Singapore's property market? Supply remains tight - and that's not changing soon The buyer behind the unit - who's still investing in luxury? Where is the market headed? Conclusion Let's take a closer look at the shifting landscape of Singapore's luxury property market - where momentum is building not with noise, but with intention.What Does 'Luxury' Really Mean in Singapore's Property Market?Luxury - it's a word that gets thrown around easily in real estate marketing, but in Singapore's high-end property scene, it carries weight. While there's no official definition, a condominium is typically considered a luxury condo in Singapore if it satisfies a few key conditions:Priced above S$5 millionLarger-than-average unit sizesDesigned by a renowned architectLocated in a prime district (often in the CCR)Developed by a reputable, top-tier builderThese are more than just checkboxes - they signal exclusivity, quality, and status. A luxury condo isn't just about sleek showflats or rooftop pools; it's about the complete lifestyle offering, from private lifts to concierge services, world-class amenities , and the prestige of the location itself.You'll know it when you walk into one - the hush of thick carpeting, the feel of stone underfoot, the way the windows frame that million-dollar view.Within this segment, there are nuances too. Some developments focus on boutique exclusivity, while others go all-in on branded residences and ultra-luxurious detailing. What sets them apart isn't just square footage or PSF - it's the experience they offer and the buyers they attract.And as we'll see, these finer distinctions matter - especially when market momentum is uneven across segments.Supply Remains Tight - And That's Not Changing SoonLuxury doesn't just come from a good location or fancy features - it comes from scarcity. And in Singapore's most desirable districts, supply is tighter than ever.In Singapore's CCR, where most of these properties are located, land is scarce and tightly regulated. Government Land Sales (GLS) in prime zones are rare, and collective sales have slowed thanks to rising land prices and stricter redevelopment rules. So when a luxury development does get greenlit, it's big news - even if it takes years to fully sell out. These homes often move at their own pace, matching the discerning nature of their buyers.These projects aren't built for the masses. Developers are intentionally going boutique - fewer units, bigger spaces, more curated details. It's all about crafting a bespoke living experience for the select few who can afford it.This limited supply, paired with Singapore's global reputation as a safe wealth haven, ensures demand remains steady - even when the broader market feels uncertain.Here are some notable CCR luxury projects slated for launch in the later half of 2025: 21 Anderson, 132 Sophia Road, River Green, and Newport Residences. Let's take 21 Anderson as an example. It stands out as a rare freehold redevelopment nestled in Singapore's prestigious District 10. With just 24 exclusive residences, this project offers elegant, large-format homes that blend timeless architecture with modern luxe. Surrounded by greenery and located just minutes from Orchard Road, it's designed for buyers who value privacy, prestige, and enduring value. One of its most distinctive features is its landscape design, curated by a Japanese priest who is also the founder of a world-renowned landscape consulting firm in Japan - a touch that elevates the project's tranquility and craftsmanship.These projects will likely attract attention not just for their locations, but for their unique positioning in a market where exclusivity continues to matter more than ever.The Buyer Behind the Unit - Who's Still Investing in Luxury?The implementation of a hefty 60% ABSD on foreign buyers has curbed overseas demand, tilting the luxury market firmly back into the hands of locals and PRs. So who's buying a $10 million penthouse in 2025? You might be surprised - or not. 1. Local affluent buyers and PRsMany of today's luxury buyers aren't jetting in from overseas. They're already here. Affluent Singaporeans and PRs - from business owners and startup millionaires to C-suite executives and cryptomillionaires - are stepping up, viewing luxury condos as both lifestyle upgrades and long-term investments.For some, it's about being close to the best schools and dining scenes. For others, it's a legacy asset - something to pass down, not flip.2. Dual-income millennials and young professionalsYes, millennials are buying luxury homes too. Dual-income couples in high-growth sectors like finance and tech are entering the market earlier than expected. They're not just buying for space - they're buying for prestige, convenience, and future-proof value.And they know what they want: smart layouts, great locations, and a home that feels like a retreat.3. Family offices and legacy buyersFor some, buying a luxury condo is about more than lifestyle - it's about wealth preservation. Family offices and long-term investors are drawn to freehold CCR units with low density and timeless appeal. These buyers tend to hold, not trade.4. Foreign ultra-high-net-worth individuals - A smaller but still present segmentSource: The Straits TImesForeign buyer numbers may have dropped with the 60% ABSD, but not everyone's been priced out. A select group of ultra-high-net-worth individuals still see Singapore as a safe, strategic base. They're drawn to branded residences, penthouses, and iconic trophy homes that feel more like global statements than just property purchases.Where is the Market Headed?So, where's this all going? If you're expecting fireworks, you might be looking in the wrong place. But if you're looking for steady, strategic movement - you're right on track.1. Moderate price growth with stable demandIn Q1 2025, prices of non-landed properties in the CCR increased by 1.22%, a moderation from the 4.35% rise in the previous quarter. It's a sign of maturity. Buyers are more selective. Sellers are holding their ground. No frenzy, just firmness.2. Narrowing price gaps between regionsCCR (blue) vs RCR (orange)With new launches in the RCR crossing near the $3,000 psf mark, the once widened gap between fringe and core has shrunk significantly. As of Q1, the price difference between the CCR and RCR stands at a mere 5.95% (as of the latest figure) - the smallest since 2000. For smart investors, that's a signal: core locations might just be offering better value than ever.3. Sustained interest in luxury segmentTransaction volumes of luxury condosBuyers in the $5 million-and-up club haven't gone anywhere. In 2024, there were 250 transactions in the luxury bracket. As of June 2025, we've already seen 154. Even in the ultra-luxury segment of $10 million-and-up, we've seen 26 transactions in 2025 so far, compared to 31 in 2024. That's not just momentum - that's staying power.4. Controlled supply amidst high demandNew launches remain disciplined. Just 3,139 BUC private residential units (excluding ECs) were released in Q1 - slightly down from the quarter before. This kind of restraint, especially in the luxury segment, keeps the balance healthy and prices firm.5. Policy measures encouraging financial prudenceSource: TradingView - Singapore's interest rates in the past decadeWith Singapore's GDP growth projected between 0.0% and 2.0% in 2025, and interest rates still elevated compared to the past decade, financial prudence has become more than a virtue - it's a necessity. Government measures, such as tighter LTV limits, higher ABSD for investors, and stringent stress tests are effectively filtering out the overleveraged. As a result, today's buyers must be more calculated and financially resilient.ConclusionSingapore's luxury condo market isn't trying to impress with headlines. It's doing what it's always done best: offering timeless value in a fast-changing world.In a climate shaped by caution and clarity, this segment continues to stand firm. No panic, no plunges - just quiet strength from those who know what they want and why they're buying.If you're looking to navigate 2025's real estate market with similar confidence and clarity, join us at our exclusive seminar - Make Money Move: Why Playing Safe is the New Strategy in 2025 Real Estate. Discover smart, low-risk strategies tailored to today's cautious climate, and learn how to position yourself for long-term success in this evolving landscape. Seats are limited - reserve yours now.If 2025 proves anything thus far, it's this: luxury in Singapore isn't just surviving. It's holding its own - gracefully, confidently, and well above the rest. Views expressed in this article belong to the writer(s) and do not reflect PropNex's position. 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