Singapore is the most expensive market for foreign buyers to buy prime residential property, research by Savills has found. In its latest World Cities Prime Residential Index report, the firm ranked Singapore as the costliest city for a foreigner to buy, own and sell a US$2 million ($2.57 million) residential property among 30 cities monitored.

Singapore’s position as the most expensive city for foreign buyers is underpinned by the 60% Additional Buyer’s Stamp Duty rate applicable on the purchase price to international buyers, says Savills. The transaction cost is three times more than the next most expensive market, Barcelona. It is also significantly above the global average transaction cost of 15% and the Asian average of 9.2%, excluding Singapore.

Savills also notes that across global markets, tax costs have risen in the last five years, as governments have gradually increased stamp duties and transaction taxes on foreign buyers to raise revenue and tackle rising housing unaffordability.

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Other findings unveiled in the report centred around the index, which tracks capital values in prime residential markets for the 30 cities. Tokyo emerged as the city with the highest capital value growth in 1H2025 at 8.8%, which Savills attributes to “a chronic shortage” of new stock and resilient demand from both domestic and international buyers.

Berlin, Dubai and Seoul saw the next biggest capital value growth in the first half of the year, at 7.2%, 5.7% and 5.1%, respectively. Meanwhile, Singapore saw a growth of just 0.2% in 1H2025, ranking 17th on the list. However, it beat major hubs such as London, Hong Kong and Paris, which recorded falls in prime residential capital values.

Overall, the 30 cities achieved a capital value growth of 0.7% collectively. “Despite a slowdown from the 2.2% growth recorded in 2024, capital value remained in positive territory, with 60% of cities posting gains in the first half of the year,” says Kelcie Sellers, associate director for Savills World Research.

She adds: “Cities with negative price growth were primarily the larger cities where residential property can be most costly to obtain.”

Savills predicts growth to pick up in the second half of the year, led by Tokyo, Seoul and Dubai, where capital values are anticipated to rise 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%. “Singapore’s private residential market will be driven by locals and permanent residents,” says Alan Cheong, executive director for research and consultancy at Savills Singapore. “The weight of money from the baby boomer generation and higher public flat resale prices is expected to continue to drive demand in the private market.”