Some 171 of such properties were traded during the period, with 130 bought by Singaporeans, according to a report on the luxury property market by real estate agency OrangeTee.

Permanent residents (PRs) made up 15.2% and non-PR foreigners purchased 7%, with companies accounting for the remainder. The combined value of these deals rose 25.7% from the previous quarter to S$1.725 billion for an average of S$10.09 million per unit.

Christine Sun, chief researcher and strategist at OrangeTee and its parent Realion Group, said the strong local demand reflects “the growing affluence among Singaporeans and their keen interest in acquiring high-end real estate as long-term investment assets and for wealth preservation.”

Mark Yip, CEO of Huttons Asia, another real estate agency, said a strong Singapore dollar, low interest rates and a surge in household cash have given locals the means to view prime homes as long-term wealth-building assets, as quoted by The Straits Times.

The higher additional buyer’s stamp duty for foreigners has also played a part, according to experts.

For foreign buyers, the tax was doubled to 60% in April 2023. The rate increased by 3–5 percentage points to 20-30% for citizens buying their second or third and subsequent homes and 30-35% for PRs doing the same.

Since the hike, buyers of luxury condominiums have been almost entirely made up of citizens, PRs and nationals from countries that receive the same stamp duty treatment as locals under free trade agreements, according to Han Huan Mei, research director at List Sotheby’s International Realty.

Mainland Chinese buyers, including those with permanent residency, remained the second-largest group of luxury home purchasers though their numbers have slid, Han told The Business Times.

Concurring, Huttons’ Yip noted that some foreign buyers may have opted to obtain citizenship before making a purchase.

Some foreigners are also willing to pay the 60% duty due to Singapore’s strong currency and its status as a safe haven, he added.

While Singapore citizens topped luxury home purchases in the central core region, the ultra-luxury segment with prices of at least S$10 million was dominated by PRs, who bought eight out of 15 such units sold last quarter. Citizens and foreigners accounted for five and two, respectively, according to OrangeTee’s report.

In a radio show with property portal 99.coRealion’s Sun also noted that luxury housing in the city-state has been attracting younger affluent buyers, especially those working in medicine, law, tech, and finance.

Many of them are opting for smaller units in prime districts such as 1, 2, and 7 near the Downtown Core for their accessible prices and modern designs.

“They tend to buy the smaller units in the prime segment because they want to jumpstart their investment journey,” she said.