Singapore wins when a foreigner pays S$6,274 psf for a luxury condo here

Singapore wins when a foreigner pays S$6,274 psf for a luxury condo here

Lowering ABSD for sales of big ticket luxury condo homes to foreigners could yield benefits

Leslie Yee
The Business Times

Oct 13, 2025

https://www.businesstimes.com.sg/opi...ury-condo-here

Recently, my colleague Kalpana Rashiwala reported that a Swiss national bought a 3,057 square foot (sq ft) apartment at the freehold condominium The Marq on Paterson Hill, near Orchard Road, at S$6,274 per square foot (psf), amounting to a total of S$19.18 million.

SC Global Developments was the seller of the mid-level four-bedroom unit, and the buyer is understood to be Kristian Jebsen. He is a Swiss citizen and his family is selling out of integrated global shipping company Gearbulk Holding.

For sure, achieving over S$6,000 psf is not typical for transactions at The Marq based on a check of the Urban Redevelopment Authority’s (URA’s) Realis data. Caveats lodged for transactions of four-bedroom apartments between 2022 and 2024 showed prices in the range of S$4,208 psf to S$4,580 psf.

Still, Singapore’s uber luxury condo market has units which transacted for over S$6,000 psf such as penthouses at Les Maisons Nassim along Nassim Road.

Kudos to SC Global for crafting in The Marq, a development with 66 units of four-bedders, five-bedders and penthouses that was completed in 2011, which has stood the test of time.

However, it’s not just a developer who wins when a super-rich foreigner pays a lofty price for a luxury condo here; Singapore is a winner too. This is especially so if a foreigner is buying a residence for owner-occupation, possibly as one of several homes globally.

Taxes

One, a foreigner who buys an uber luxury home here is making a substantial contribution in taxes.

Sure, a Swiss national buying a first home here need not pay additional buyer’s stamp duty (ABSD). Under respective free trade agreements, nationals and permanent residents of Iceland, Liechtenstein, Norway and Switzerland, as well as US nationals, are accorded the same stamp duty treatment as Singapore citizens.

Still, a buyer of a home costing S$19.18 million pays buyer’s stamp duty of about S$1.09 million. In addition, homeowners pay property tax on a recurring basis. As residential property tax rates for owner-occupiers and non-owner-occupiers are highly progressive, luxury homeowners bear much heavier property taxes than other owners.

If the buyer pool for uber luxury condo homes comprises not just Singapore citizens and permanent residents (PRs) but also a significant number of non-PR foreigners, this can mean that prices of S$5,000 or S$6,000 psf on premium condos will be more easily achievable for the right product. And tax takings get substantially boosted when units transact for say close to S$6,000 psf instead of around S$3,000 psf.

Investments

Two, a wealthy foreigner buying a home instead of non-residential property is likely to build closer bonds with Singapore and in turn possibly create greater economic value for the Republic.

Following from buying a home in the city-state for his or her own use, a wealthy foreigner and their family members are likely to spend more time in Singapore. This can lend support to various service providers here such as food and beverage outlets, private medical practitioners, high-end boutiques and fitness trainers among others.

Importantly, a wealthy foreigner who spends more time in Singapore after buying a home here can develop a deeper understanding and appreciation of the Republic’s governance and its business environment as well as build ties with Singapore-based business leaders, professionals and philanthropists.

In turn, the high-net-worth individual may be more inclined to invest in Singapore-listed equities, private businesses here, local social enterprises and so forth. Indeed, capital markets, startup activity and philanthropic efforts among others will receive a boost.

Soft power

Three, amid some countries erecting trade barriers and multilateralism being undermined, Singapore could do well to build closer ties with rich foreigners.

A wealthy foreigner who owns a home here and spends time in the city-state can be a powerful ambassador for Singapore.

The individual’s network might include influential voices in politics, business and other spheres in his home country. Imagine the soft power that Singapore accrues when it has influential friends in many countries.

Given that the purchase of more luxury condos here by wealthy foreigners benefits Singapore, should policies deterring home buying by foreigners be relaxed?

ABSD

As it stands, foreigners are generally prohibited from buying landed homes, but can buy non-landed private homes. However, many non-PR foreigners such as nationals of China, Malaysia, Indonesia, Thailand, Australia and UK would have to pay 60 per cent ABSD for the purchase of any home. The applicable ABSD rate for non-PR foreign home buyers was 30 per cent previously, before it was revised upwards in late April 2023.

In contrast, Singapore citizens buying their first home do not pay ABSD while a PR first home buyer pays 5 per cent.

Certainly, locals buying a first home rightly enjoy preferential treatment over other buyer profiles.

Nonetheless, there may be room to relax ABSD on non-PR foreigners buying luxury homes here. In this way, Singapore can gain from having more foreigners buying homes here without disturbing the suburban condo market where many locals purchase homes for owner occupation.

Perhaps the ABSD rate can be slashed to 30 per cent or less for a non-PR foreigner who buys a home with capital values of at least S$10 million. Typically, Singaporeans and PRs buying condos for owner occupation purchase units that are well below this threshold.

Certainly, prices of private non-landed homes in Core Central Region or the prime districts have fared well of late – with prices up 2.4 per cent quarter on quarter in Q3 based on the URA’s flash estimate, following a 3 per cent quarterly increase in Q2. Orchard Road area project Upperhouse at Orchard Boulevard had strong sales take-up at its recent launch.

https://i.imgur.com/5Jty1Tm.png

Nonetheless, lowering barriers to non-PR foreigners buying luxury homes here is worth considering. Getting rich foreigners attached to Singapore through the purchase of a home here can be positive not just for luxury housing developers but also the Republic’s fiscal coffers, capital markets and soft power.