There are many reasons why locals continue to buy new launches in Singapore even if they have to pay the additional buyer stamp duty. The locals are not the only ones buying. Informed foreigners who have to pay up to 20% additional buyer stamp duty are also buying. Here are eight common reasons why they do so. Real estate has always been a good hedge against inflation. Land and construction costs will go up with time, which ultimately translates to higher prices further down the road. The land is exceptionally scarce in Singapore, and the rise in population (both residents and non-residents) over time is expected to provide support for prices. Singapore's real estate planning and development are driven by the URA's master plan. The master plan sets out the plans and directions that the government has for the different parts of Singapore. The developments outlined in these plans serve as catalysts for future price increases. The buyers study and follow the government's directions and buy into new launches in areas that are undergoing a transformation. Based on past trends, these properties are expected to see price appreciation when the government's plans come to fruition in time to come. Singapore is politically stable and is seen as a haven for both locals and foreigners to park their assets. Singapore's property market is not speculative (because of both additional buyer & seller stamp duty) and attracts investors & buyers who look for sustainable growth. The monthly mortgage that is payable for new launches is lower than resale properties because of the progressive payment schedule for new starts. Buying new launches allows the buyer to leverage (provided they are eligible to take a bank loan). When the price goes up upon TOP (building completion), the ROI achievable is very attractive even with the taxes factored in. I did a study recently to see how buyers who bought new condos launched in 2014/2015 performed when they sold these units off when construction was completed in 2018/2019. Did they make, or did they lose money? See this Singapore new launch study to see how they did. Having said the above, on a side note, holding power is extremely important in real estate. Most people lose money in real estate because they are forced to sell at the wrong time. Note: Nationals from the following 5 nations do not have to pay additional buyer stamp duty (because of free trade agreement) when they purchase their first property in Singapore. Liechtenstein Iceland Norway United States Switzerland Unfortunately, my gut feeling is that not many nationals from these 5 nations know about this. Please do a check again where taxes (& rules) are concerned if you are thinking of purchasing a residential property in Singapore as the above info is subjected to changes anytime. === Possibly they are still bullish in their view of the market potential in the next 6 to 10 years. However, there will be some buyers who bought these properties because they were "too rich" and do not know how else to spend their monies. The 3rd reason is that some "richer folks" believe in making money through earning passive rental incomes. Some of these high priced properties do fetch excellent rental incomes, primarily if they are located in busy city areas or near very populated business districts. === What choice do they have? They don't have PR or citizenship anywhere else except that tiny island that is smaller than many other cities.