Surprising STRENGTH
Luxury real estate’s most remarkable trait may be its indifference to global headlines
While headlines fixated on economic uncertainty, the world’s wealthiest buyers were quietly doing what they’ve always done—buying. The enduring power of luxury real estate, particularly properties priced at US$10 million and US$20 million and above, exceeded expectations in 20251 and is poised to continue that trajectory into 2026, according to Philip A. White Jr., president and CEO, Sotheby’s International Realty.
“Even after tumultuous local elections and amid high interest rates, as well as proposed tax measures, we’re still seeing strong property markets in New York City, across the U.S. and around the world,” White says. “Despite macroeconomic and geopolitical headlines, the affluent remain engaged and confident in the luxury housing market. They are deliberate but not deterred. Demand for best-in-class properties continues to demonstrate that prime real estate holds its position as a trusted asset and a powerful expression of lifestyle and legacy.”
Luxury real estate investments benefit from similar optimism about finances and macroeconomics. “There’s a high correlation between stock market performance and the luxury housing market,” says Selma Hepp, chief economist at Cotality, a property data analytics company. The S&P 500 index, tracking the top companies on U.S. stock exchanges, rose approximately 80% from early 2023 through 2025, with many investors expecting further gains, according to a January 2026 analysis by The Wall Street Journal.2
“There’s been a lot of wealth creation because of the stock market,” Hepp says. “The increase in aggregate wealth in the top 10% of Americans over the past five years is approximately US$40 trillion compared to just US$3 trillion for the bottom 50% of income brackets.” This is backed up by data released by the U.S. Federal Reserve in January 2026, which showed a steep rise in the net worth of the top 1% of wealthy Americans, totaling US$54 trillion by the third quarter of 2025.3 Hepp points out that, in addition to stock market performance, wealth accumulation at all income levels stems from housing value appreciation.
The Net Worth of the Top 1% Wealthiest Americans
Source: “Net Worth Held by the Top 1% (99th to 100th Wealth Percentiles),” Federal Reserve Bank of St. Louis, January 16, 2026
“ THE AFFLUENT REMAIN ENGAGED AND CONFIDENT IN THE LUXURY HOUSING MARKET. THEY ARE DELIBERATE BUT NOT DETERRED.
”
Philip A. White Jr., president and CEO, Sotheby’s International Realty
Stock Exchange Gains, 2023-25
Source: “Five Wall Street Investors Explain How They’re Approaching the Coming Year,” The Wall Street Journal, January 1, 2026
rise in S&P 500
While the general real estate market has been sluggish for the past three years, the upper end has continued to show signs of strength, according to Lawrence Yun, chief economist and senior vice president of research, National Association of REALTORS® (NAR). “There’s a little more inventory that has helped keep that property market moving,” he says. “The stock market has helped, plus the ability of upper-end homebuyers to pay with cash and not be concerned about mortgage rates.”
Most of the wealth in the stock market is held by the top 5% of households in the U.S., Yun says, so these past few years of equity gains have generated the ability to buy second, third and fourth homes at the top tier of the housing market. Luxury homeowners have also benefited from a rise in home values, so they can sell a property and pay cash for their next purchase, he continues.
But Yun believes mortgage rates still have a psychological impact on luxury homebuyers. Following the Federal Reserve’s April 2026 meeting, when the central bank decided to hold interest rates at 3.5% to 3.75%, Yun expects that mortgage rates could come down from lower inflationary pressures once the financial market shock over oil prices dissipates.
Location Matters
Looking beyond the luxury real estate sector, in the overall real estate market, 2026 should be a year of gradual improvement in affordability according to Hepp, although there will be some variations by region and price range. “Real estate markets where homeowners and homebuyers are in the upper income levels are doing better than those with lower incomes,” she says. “Property investor activity is up and the tax benefits for upper income households are likely to help the luxury housing market as well as investors.”
The expansion of state and local income tax (SALT) deductions from US$10,000 to US$40,000 in July 2025 due to the One Big Beautiful Bill Act4 will likely increase purchases of high-end residences in states with high property tax rates, such as New Jersey, Connecticut, Massachusetts and New York, according to Yun. However, the expanded deductions are phased out for taxpayers with an adjusted gross income of US$500,000 or higher, so it may not have a significant impact on ultra-luxury housing markets. “As people filed their income tax returns in April, they found they could reduce their tax bill with SALT deductions,” Yun explains. “They have extra money in their pockets and may be encouraged to buy a larger home when they realize they can deduct more of their property taxes.”
In addition, if legislation passes to increase the capital gains tax exemption for home sales, that could also help the upper end of the housing market, Yun says. Currently home sellers can exclude US$250,000 (US$500,000 for a married couple) of the proceeds from the sale of their home from capital gains taxes, according to IRS guidelines.5 “More homeowners might consider selling if their tax burden is reduced, which could increase the number of high-end transactions,” he says.
Rising insurance costs, higher property taxes and inflation have much less of an impact on the ultra-luxury property market, Hepp says, but rising labor costs limit new construction and slow the pace of custom homebuilding. “The unpredictability of tariffs and immigration issues have made it much more difficult to price custom homes,” she notes. “It’s hard to know what materials will cost because tariffs have been up and down and vary by item. Plus, builders struggle to estimate labor costs because of concerns about immigration.”
Best-in-class properties, such as a two-story Tribeca townhouse in New York City, are seen as a trusted asset for luxury homebuyers.
Sotheby’s International Realty - Downtown Manhattan Brokerage
Luxury Real Estate Metrics
More than half (55%) of Sotheby’s International Realty affiliated real estate professionals around the globe reported an increase in the number of luxury homebuyers in their local property markets over the past 12 months, according to the 2026 Mid-Year Sotheby’s International Realty agent survey. They anticipate a similarly strong turnout throughout 2026, and reported average price increases of 5%.
Particularly in this top tier of the real estate market, superior-quality homes that are priced well and marketed appropriately are selling quickly, according to White. “In Connecticut, Leslie McElwreath, senior global real estate advisor, Sotheby’s International Realty - Greenwich Brokerage, doubled the number of US$10 million-plus deals in 2025 compared to 2019, even though there were fewer than 100 homes on the real estate market in that price range,” White says.
“On Sea Island, Georgia, Chase Mizell of Atlanta Fine Homes Sotheby’s International Realty and Susan Imhoff and Ann Harrell of DeLoach Sotheby’s International Realty set a state record by selling architect John Portman’s 13,000-square-foot home for US$30 million,”6 White adds. “The house, Entelechy II, is strikingly contemporary, a departure from the traditional cottages on the island, but it’s right on the water.” That record could soon be broken, however, by the former home of HGTV co-founder Ken Lowe and his wife Julia—a custom-built, 11,000-square-foot oceanfront estate—according to an April 2026 report by The Wall Street Journal.7 The mansion, called Lowe Tide, was recently listed at US$42 million with DeLoach Sotheby’s International Realty.
In the wider real estate market, Hepp notes a divergence between a slowing property market in the Southeast compared to a more stable one in the Midwest and the Northeast. “The general Florida housing market has slowed because of the compound effect of natural disasters, higher insurance and immigration restrictions, but high-end homebuyers seem to be insulated from those issues,” she says.
The ultra-luxury property market in Miami, Florida, is on particularly solid ground, according to Yun. “They had a little oversupply, but with their infrastructure development and new luxury condominium construction, it’s becoming an even bigger city,” he says. “There are many, many million-dollar homes there, but the job gains in Florida have been growing faster than in the rest of the country.”
A majestic stone-built manor in Stamford, Connecticut offers stunning views over formal gardens, a private lake and rolling woodlands.
Daniel Milstein Photography, Sotheby’s International Realty - Greenwich Brokerage
A Rise in Luxury Homebuyers Over the Past Year
Source: 2026 Mid-Year Sotheby’s International Realty agent survey
of real estate professionals selling US$10M+ properties reported an increase in homebuyers
Yun also believes many retiring wealthy baby boomers (those born between 1946 and 1964) will choose to relocate to Florida in the years ahead, especially to benefit from the lack of state income taxes there. “We’ve seen renewed luxury real estate demand in New York City and California’s Central Coast, but also booming luxury property markets in Montana and Wyoming, which are tax-friendly states,” Hepp says.
A light-filled 9,200-square-foot penthouse in Miami, Florida, is an example of the city’s growing infrastructure development.
ONE Sotheby’s International Realty
In Los Angeles, California, the “mansion tax” on the sale of properties worth US$5 million and more has been in place since April 2023, yet the ultra-luxury property market there continues to thrive, Hepp says. “Sales of homes priced from US$3 million to US$5 million [and so not subject to the additional tax] were up 11% in 2025, while sales of homes at US$5 million and higher were up 30%.”
While Washington, D.C. was the focus of attention in 2025 because of federal government layoffs, Yun says the city’s enduring appeal as an international capital has kept the ultra-luxury property market there thriving. He says people with a long-term perspective are eager to get into the Washington, D.C. housing market now because of the perception of a slowdown there, which has kept sales activity on solid ground.
Globally, sales transactions for the Sotheby’s International Realty brand were up in 2025, White says. Cabo San Lucas, Mexico, was among the stronger-performing markets, part of what White describes as a genuine shift in homebuyer behavior. “Americans are more open to different places than in the past,” he says, a trend the brand is seeing across its global portfolio.
Vietnam represents the brand’s next move in that direction, a market where economic growth has created a new class of wealthy domestic buyers, international interest is accelerating and luxury inventory hasn’t caught up with demand.
The country will join the brand’s existing presence in key global hotspots in the Asia Pacific region, such as Australia, New Zealand, Hong Kong, Singapore, Taiwan, the Philippines and Japan. “Tokyo had an exceptional year, and Osaka opens up an entirely different side of what Japan has to offer our clients,” White says.
Luxury homebuyers who rely on the brand’s network are a mix of pure property investors and those looking for a lifestyle purchase, according to White. “Some homebuyers are just fascinated by real estate and want to buy multiple properties with the potential to rent them for a season or two. But in the long term, they focus on getting a good price for anything they buy. They need to see the value in their purchases and want to know that if and when they decide to sell, they have the potential to get a good return on their investment.”
The Global Wealth Effect
Wealth continued to accumulate internationally in 2025, with an estimated 4.3 million high-net-worth individuals (HNWIs) around the world, each with households worth more than US$1 million, according to the World Ultra Wealth Report 2025 released in September 2025 by Altrata, a provider of global financial data.8 Within that group there are more than 500,000 ultra-high-net-worth individuals (UHNWIs), with more than US$30 million in wealth. And while UHNWIs make up just 1.1% of the world’s millionaires, an already rarefied demographic, they hold 32% of this group’s net worth, according to Altrata’s research.
The top 10 countries with the largest percentage of UHNWIs include the U.S., China, Germany, the U.K., Japan, Hong Kong, Canada, France, Italy and India. Altrata’s researchers predict that while North America will remain the region with the most ultra-wealthy residents, by 2030 the strongest growth of UHNWIs will be seen in Asia, with an outsized boom in India.
According to the UBS Global Wealth Report 2025 released in June 2025, 35% of the world’s wealth is held in the U.S. and approximately 30% is in emerging economies, which UBS researchers expect to remain the same over the next few years.9 Nearly 40% of the world’s millionaires reside in the U.S., four times as many as in mainland China, according to UBS, and researchers anticipate another five million new millionaires will be minted by 2029.
“If the presidential administration’s high-end visa program really takes off, that could significantly boost luxury sales to foreign nationals in the U.S.,” Yun says. The website for this initiative went live in December 2025, offering a streamlined path to U.S. citizenship for a fee of US$1 million for individuals and US$2 million for corporations, which can then provide immigration and residency rights to employees.10 The program also requires a US$15,000 processing fee. In late December 2025, the administration claimed that sales of Gold Cards had already reached US$1.3 billion, according to a December 2025 report by Scripps News.11
“Tightening of other immigration policies may slow some foreign property investment, but generally 2026 should be a strong year for international homebuyers in the U.S. after it was muted for so long because of the pandemic,” Yun says.
The World’s Wealthy in 2025
Source: “World Ultra Wealth Report 2025,” Altrata, September 2025; “Global Wealth Report 2025,” UBS, June 2025
HNWIs worth US$1 million-plus
UHNWIs worth US$30 million-plus
of net worth held by 1.1% of the most wealthy
of global millionaires live in the U.S.
Generational Transformations: Millennial Homebuyers
A combination of earned and inherited wealth has led to an increase in luxury home purchases by millennial homebuyers (those born between 1981 and 1996), according to the 2026 Mid-Year Sotheby’s International Realty agent survey. A majority (66%) of respondents operating at all price levels said there are more Millennial homebuyers in their property markets; this trend was even more pronounced among real estate professionals working in the US$5 million-and-up price bracket, 73% of whom saw a rise in this demographic.
“The wealth transfer is happening now, and giving younger homebuyers more capital to make big purchases,” White says. “At the federal level, there are no taxes on lifetime gifts of up to US$15 million per individual or US$30 million for a married couple, according to IRS guidelines updated in January 2026.12 Plus, parents see that giving their kids US$2 million now as a gift is like earning US$4 million, because it’s tax-free.”
This wealth transfer will result in changes to the housing market, since younger homebuyers tend to be more influenced by social media and make lifestyle purchases rather than pure real estate investments, White says.
But lifestyle considerations are key for all generations, with 62% of respondents to the agent survey saying it has become an increasingly important factor for homebuyers. Taxes were close behind at 60%, followed by economic stability (53%) and political stability (49%).
Travel as an Indicator for Second Home Markets
Luxury travel trends can also provide insights into the motivations and priorities of those looking into high-end real estate purchases. “Affluent travelers place a premium on experiences where they feel completely cared for,” White says. “That’s one reason branded residences continue to be among the hottest trends in luxury real estate. People really gravitate to places like the St. Regis, Four Seasons and Waldorf Astoria residences because they like living in a place that provides the services of a luxury hotel. Asia-based branded residence operators such as Mandarin Oriental, The Peninsula, Banyan Tree, Six Senses and Rosewood are setting new standards of luxury.”
In addition, a willingness to spend lavishly on travel bodes well for continued investment in real estate, especially as people find new destinations where they may want a more permanent residence.
“Affluent travelers, made wealthier in recent years by stock-market rallies and real-estate gains, have splurged on their stays with abandon,” according to a November 2025 report by The Wall Street Journal.13 “Having already accumulated a stash of fancy cars and watches, wealthy Americans today are spending even more on experiences, including travel. Multigenerational trips are more popular than in the past, with grandparents paying for accommodations large enough to include their children and grandchildren.”
A luxury sea-view duplex apartment in the prestigious Bandstand area of Bandra West, Mumbai, offers premium amenities ideal for travelers.
India Sotheby’s International Realty
For luxury homebuyers seeking a lifestyle purchase, a nine-bedroom estate in Kailua, Hawaii, provides the perfect blend of seclusion, security, and harmony with its surroundings.
List Sotheby’s International Realty
Lifestyle Drives Sales
“We have a lot of momentum in our brokerages and our affiliate businesses,” White says. “We anticipate the resilience of the luxury real estate market to continue throughout this year and beyond.” In addition, trends such as lifestyle-driven priorities and the influence of younger wealthy homebuyers are likely to affect global high-end property markets throughout the year.
The combination of wealth creation through real estate, equity investments and intergenerational transfers supports continued resilience in luxury and ultra-luxury housing markets. Ultra-high-net-worth homebuyers and sellers share an understanding that investing in real estate for lifestyle benefits and financial diversification could help generate their preferred outcomes. Still, they seek the advice of real estate experts with global networks and expertise to help them navigate the complexities of property purchases.
Spotlight on Global Markets
International geopolitics and macroeconomics influence conditions in luxury housing markets, but regional and local trends also play a role. The pages ahead examine the evolving trends across some of the Sotheby’s International Realty brand’s premier housing markets.
Boston and Cambridge, Massachusetts
In Boston, luxury condominium buildings in prime locations with high-end amenities attract plenty of homebuyers, but the top range of the housing market in nearby Cambridge primarily consists of single-family homes priced at US$10 million and above, according to Lauren Holleran, senior global real estate advisor, Gibson Sotheby’s International Realty in Cambridge.
“The luxury condominium market in Boston attracts people who want to downsize from a larger house that needs work,” Holleran says. “In Cambridge, the upper end of the market is mostly renovated or remodeled single-family homes that don’t need work either. What sells here is a contemporary interior with colonial exterior or a colonial house with a well-designed contemporary addition.”
The appetite for renovating a home has disappeared in the last year or two, Holleran explains, primarily because of the uncertainty of how much the work will cost and how much time might be needed to complete a major project.
“There was a price shift in our market, with most ultra-luxury homes valued under US$10 million rising to the US$15 million to US$16 million range by 2025,” she says. “I think we’ve reached the top of the market of what homebuyers are willing to pay now, so prices are pulling back to the US$12 million to US$15 million range.”
The reason, she believes, is the “vibecession”—the perception that the economy is in a slowdown even when it’s not.
“It’s more of a confidence issue than a financial reality that’s holding back homebuyers a little on the upper end,” Holleran says.
Still, Boston and Cambridge consistently attract deep-pocketed homebuyers from the financial services sector and technology and life sciences fields, she adds. For those that prefer to live in Cambridge, the rarity of a fully renovated historic home keeps the market tight.
Already renovated properties in Boston, Massachusetts, such as a US$12.5 million single-family brownstone, are particularly appealing to luxury homebuyers.
Gibson Sotheby’s International Realty
Dallas, Texas
The city’s housing market has been stable, which bodes well for the rest of 2026, says Rachel Finkbohner, global real estate advisor, Briggs Freeman Sotheby’s International Realty.
“We do 70% of our business between January and June, and typically have 30-day closings, so things move fast,” Finkbohner says. “Our inventory in Dallas is really tight, particularly in neighborhoods with a range of educational resources, where homes are priced from US$2.5 million to US$6 million.”
The Dallas market is “hyper-obsessed” with location, according to Finkbohner, with some homebuyers only wanting to live on one or two specific streets.
“Most of our homebuyers are locals, so they know where they want to be,” she says. “But more companies are moving to Dallas, too, so the number of out-of-market homebuyers is starting to increase in the city compared to the rest of the state, with the top leadership of these companies buying homes in high-end neighborhoods.”
While in other U.S. markets people have tended to stay in their homes for longer in recent years, in Dallas people often look to upsize, upgrade for style or shift to a more desirable neighborhood after a few years in their home, according to Finkbohner. “In neighborhoods like University Park, some developers are building homes in the US$7 million to US$12 million range,” she explains. “Otherwise, most of the new construction is custom homes built after an existing home is torn down.”
Finkbohner anticipates a strong market throughout 2026 but hopes for more inventory, particularly in the US$2.5 million to US$4 million range to increase transaction volume.
San Francisco, California
Artificial intelligence (AI) has triggered a renaissance for the Bay Area, according to Alex Hachiya, senior global real estate advisor, Sotheby’s International Realty - San Francisco Brokerage.
“San Francisco thrives on innovation and new technology, and now the AI boom is real,” Hachiya says. “Wealth flooded back into the city in 2025, and we saw 84% more sales of homes priced at US$7.5 million and up that year, compared to 2024.”
That sales trajectory boosted confidence at every level in the city going into 2026, assisted by new political leadership restoring San Francisco and its reputation, he says.
“It’s been a U-turn, with people moving back here from New York, New York, Austin, Texas, Washington, D.C. and elsewhere,” Hachiya continues. “San Francisco has always been a trophy city for international homebuyers, although we haven’t seen as many foreign homebuyers in the past few years.”
Homebuyers in their 20s and 30s who work in tech, are entrepreneurs or have family wealth buy in the city at first and then move to nearby suburbs when they have children, Hachiya notes.
“When they’re a little older and their kids go to college, those homebuyers purchase a weekend place in the city,” he says. “We also see demand from empty-nesters and older people who want to buy a new place in a building with an elevator as part of their retirement plan. We see some grandparents buying places in the area so they can be closer to their kids and grandkids, too.”
All homebuyers, but especially younger ones, want turnkey properties without the need to renovate, plus a flexible floor plan, private outdoor space and a walkable neighborhood, Hachiya adds.
“In 2026, we’re seeing a little more inventory come on the market from people who were waiting for the right moment to sell,” he says. “Now that the AI demand is here and people feel more confident about an improving city, we expect sustainable strength in the housing market.”
“ ARTIFICIAL INTELLIGENCE HAS TRIGGERED A RENAISSANCE FOR THE BAY AREA.
”
Alex Hachiya, senior global real estate advisor, Sotheby’s International Realty - San Francisco Brokerage
Thanks to factors such as the AI boom, luxury homebuyers in San Francisco, California, feel more confident about an improving city, seeking out iconic properties such as a Victorian masterpiece in Pacific Heights.
Open Homes Photography, Sotheby’s International Realty - San Francisco Brokerage
Mumbai and New Delhi, India
The momentum experienced in prime luxury property markets in India over the past year is likely to continue, particularly in iconic neighborhoods with limited inventory, according to Sudershan Sharma, executive director, India Sotheby’s International Realty.
“With record sales and exceptional performance in the ultra-luxury segment, 2025 was a defining year,” Sharma says. “We saw strong growth in both transaction volume and prices, with overall values surging over 40% in the last three years. However, inventory remains tight; the scarcity of ‘trophy’ properties in prime zones like Lutyens’ Delhi and South Mumbai has led to prices holding strong.”
Luxury homebuyers in India traditionally come from legacy industrial families, but Sharma says that new demand is coming from younger homebuyers, including startup founders, next-generation entrepreneurs and C-suite executives monetizing their equity gains.
“Many homebuyers are upgrading their primary residences for lifestyle value, and demand for second homes in hilly and beach destinations is robust as an escape from urban intensity,” Sharma explains. “Luxury real estate is viewed as a ‘blue-chip asset class’ for capital appreciation and efficient reinvestment of capital gains under Indian tax laws.”
India’s strong economic momentum and rising wealth levels along with interest-rate cuts and tax laws influence the luxury real estate market there.
“The most desirable homes are ‘experience-led’ gated villas or high-rise properties offering wellness, privacy and top-of-the-line amenities,” Sharma says. “We’re also seeing exceptional demand for second homes in drivable destinations from Mumbai. Simultaneously, the core markets in the financial capital remain robust, particularly in iconic neighborhoods such as Nepean Sea Road, Malabar Hill and Worli, where the address itself carries an irreplaceable premium.”
London, United Kingdom
Headlines predicted that wealthy homeowners would leave London after recent tax law changes, but in 2025 the market performed better than in 2024 in both sales volume and prices, according to Marcus O’Brien, head of the family office, United Kingdom Sotheby’s International Realty.
“There was a degree of wealth movement, and we saw some clients relocate earlier in 2025, but this also released stock that hadn’t come to market in two decades or more—properties that are rarely traded and were met with strong demand,” O’Brien says.
“Turnkey properties with high-caliber interior design continue to see the strongest demand,” O’Brien says. “Buyers are prioritizing homes that are fully finished to a high aesthetic and technical standard. The demographic is also shifting younger, to homebuyers in their 30s and early 40s, often founders or second-generation wealth, in the prime and super-prime brackets.”
While most purchases are for primary residences, second home activity has grown as the hybrid lifestyle becomes more entrenched, he adds. “The UK government’s 2025-26 budget has played a meaningful role influencing the luxury housing market,” O’Brien says. “Clarity around property taxation and stamp duty thresholds has prompted some homebuyers who were previously on the sidelines to re-engage. Broader economic stabilization, interest-rate expectations and currency movements—particularly sterling against the dollar—are also shaping buying decisions.”
For the rest of 2026, O’Brien expects more legacy properties to become available and to trade. “If economic policy remains predictable and interest rates ease, confidence will continue to build,” he says. “Price growth is likely to be modest but positive, with continued competition for the highest-quality homes. As always, quality will outperform quantity.”
Properties with high-caliber interior design in London, United Kingdom, such as this Clerkenwell duplex, continue to see the strongest demand.
United Kingdom Sotheby’s International Realty
“ THE DEMOGRAPHIC IS SHIFTING YOUNGER, TO HOMEBUYERS IN THEIR 30S AND EARLY 40S, OFTEN FOUNDERS OR SECOND-GENERATION WEALTH.
”
Marcus O'Brien, head of the family office, United Kingdom Sotheby’s International Realty in London
Singapore, Republic of Singapore
Its position as a mecca for UHNWIs as well as its strong currency continue to bolster Singapore’s reputation as a safe-haven market, according to Nancy Tey, senior associate vice president, List Sotheby’s International Realty, Singapore.
“Prices for non-landed properties [condominiums and apartments] were resilient throughout 2025, and some prime trophy assets in Singapore achieved new benchmark prices,” Tey says. “Transaction volumes were higher in 2025 because of many condominium launches in the core central region.”
While properties with land are highly desirable, they’re also in short supply. The properties that sell the fastest are non-landed residences in Districts 9, 10 and 11; “Good Class Bungalows,” which are exclusive properties in designated areas with large lots; detached residences with redevelopment potential; large-format units with three or four bedrooms and privacy; and move-in ready homes with high-quality finishes, Tey says. “Most of our transactions are local homebuyers who are Singaporean citizens or permanent residents in their 40s to 60s, but we’ve also seen a noticeable increase in younger homebuyers in tech and finance, along with second-generation family wealth.”
Foreign homebuyers are active on the ultra-prime level, but purchases are limited by the high Additional Buyer’s Stamp Duty charged to foreign and second-home buyers. Still, Tey says UHNWIs from China, Indonesia and India, and global business owners with family offices in Singapore, continue to buy residential property there.
“Our homebuyers prefer prime established locations over fringe luxury locations,” Tey adds. “They also prioritize privacy, long-term livability and layout efficiency.” Throughout 2026, Tey anticipates Singapore will maintain its position as a long-term wealth preservation market rather than a speculative one.
Sydney, Australia
The luxury housing market in Sydney outperformed other international real estate markets in 2025, with higher prices, more transactions and relatively tight listings, according to Harriet France, senior global real estate advisor, Sydney Sotheby’s International Realty. And she predicts more of the same in 2026.
“I expect prices to keep rising, but at a moderate, steady pace rather than a boom, with demand remaining strong,” France says, attributing this trend to a strong base of local high-net-worth homebuyers, downsizers and returning expats, along with some selective international interest. “We have very limited stock in bluechip locations, which supports prices and competition for quality homes.”
In Sydney, demand is strongest for waterfront mansions, harborside estates, high-end beachside houses, luxury premium apartments and prestige houses located in the blue-chip suburbs in the east and the lower north shore, France notes. Beyond the local homebuyer base or those moving between states, international and expat homebuyers generally come from the U.S., the U.K., New Zealand, Hong Kong, mainland China and Singapore. “We have a strong presence of established and mid-life homebuyers,” she explains, “but younger wealthy homebuyers are increasing, and downsizers are also significant.”
The biggest influence on the luxury real estate market in Sydney this year is interest rate stability, France says. In addition, the chronic supply scarcity in blue-chip locations, domestic economic resilience and low unemployment drive up prices and demand from local homebuyers. While the reputation of Sydney as a haven for capital generates global wealth flow, temporary foreign buyer restrictions on established dwellings reduces some offshore demand, she explains.
“The market is becoming more lifestyle-driven, design-focused and future-proofed, rather than purely about prestige, size or status,” France says. “Homebuyers are focused on location, low maintenance and long-term livability as well as lifestyle.”
Located in one of Palm Beach’s most prestigious addresses, a tri-level, six-bedroom residence in Sydney, Australia, is a seamless fusion of contemporary elegance and sustainable design.
Sydney Sotheby’s International Realty
“ I EXPECT PRICES TO KEEP RISING, BUT AT A MODERATE, STEADY PACE.
”
Harriet France, senior global real estate advisor, Sydney Sotheby’s International Realty
More from the report
Discover how these trends may impact your city.
© 2026 Sotheby’s International Realty. All Rights Reserved. Sotheby’s International Realty® is a registered trademark and used with permission. Each Sotheby’s International Realty office is independently owned and operated, except those operated by Sotheby’s International Realty, Inc. This material is based upon information which we consider reliable but because it has been supplied by third parties, we cannot represent that it is accurate or complete and it should not be relied upon as such. All offerings are subject to errors, omissions, changes including price or withdrawal without notice. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Equal Housing Opportunity.
Do Not Sell My Personal Information | Privacy Policy | Terms of Use | Accessibility Statement