The Singapore property market has witnessed a fundamental shift in pricing dynamics during the first half of 2025, as median unit prices in the Rest of Central Region (RCR) surpassed those in the Core Central Region (CCR) by 6.2%, marking a reversal of historical market norms that have defined the city-state’s residential landscape for over a decade.
This unprecedented development represents the first instance since 2013 where CCR median price per square foot for new private homes has fallen 4% below RCR levels, signaling a structural transformation in buyer preferences and market valuations.
The convergence stems from dramatically divergent growth trajectories, with RCR properties experiencing 42.2% price appreciation between 2020 and 2025, substantially outpacing CCR’s modest 15.1% increase during the same period.
This disparity has been exacerbated by CCR price stagnation, which registered only 0.8% quarter-on-quarter growth in Q1 2025, while RCR accelerated at 1.7%, further narrowing the traditional premium gap between these market segments.
Foreign buyer activity has collapsed to merely 2% of new CCR sales by 2024, primarily attributable to the 60% Additional Buyer’s Stamp Duty imposed on international purchasers.
This has fundamentally altered demand dynamics that historically supported CCR pricing premiums. Domestic buyers have increasingly gravitated toward RCR developments offering premium amenities and perceived superior value propositions.
Meanwhile, developers have strategically launched CCR projects with competitive pricing, including significant unit inventories below $2.5 million. The 42% price gap between prime CCR developments like W Residences and RCR properties such as Bloomsbury Residences highlights the luxury positioning that continues to differentiate the highest-tier offerings.
This market recalibration has transformed the historically luxury-exclusive CCR into an accessible option for broader buyer segments, while RCR properties have emerged as compelling valuation plays attracting both investors and owner-occupiers.
The narrowing price differential has intensified competition between regions, with savvy investors reconsidering CCR purchases given diminished foreign participation and improved affordability metrics.
Secondary market activity in CCR has increased substantially as buyers capitalize on narrowing price differentials, while upgrading trends from HDB to private housing have accelerated across both regions. Rising construction costs across all regions have contributed significantly to OCR and RCR price increases while CCR growth has remained relatively subdued.
However, risks persist regarding potential RCR over-valuation if price growth continues outpacing fundamental demand, while CCR rebound potential remains constrained by economic uncertainty and tightening credit conditions affecting luxury segment performance. For middle-income buyers, Executive Condominiums continue to offer substantial value at 25%-35% below comparable private condominium prices, providing an alternative pathway to property ownership amid these shifting market dynamics.
