As market dynamics shift across Singapore’s residential landscape, prime Core Central Region (CCR) properties are experiencing particularly gentler price points in 2025, with new launch 3-bedroom units averaging $3,273 per square foot and upper-tier 5-bedroom units reaching $4,130 per square foot amid a complex interplay of moderating buyer sentiment and anticipated supply constraints.
Quarter-on-quarter price growth in CCR recorded 0.78% in Q1 2025, considerably trailing the Rest of Central Region’s robust 1.70% increase, while annual CCR non-landed price growth reached only 1.89% compared to RCR’s substantial 7.27% surge during the same period.
CCR price growth significantly lags behind RCR’s robust performance, with quarterly gains of just 0.78% versus 1.70% respectively.
This divergence reflects increased buyer caution and competitive pricing pressures as market activity shifts toward city-fringe and suburban locations offering more accessible entry points.
The softer price trajectory stems from multiple converging factors, including anticipation of significant new supply arriving in 2025, which prompts developers to adopt more conservative pricing strategies. Cooling measures implemented by authorities continue exerting downward pressure on rapid price escalation, while investors demonstrate moderate demand due to alternative investment options and yield considerations.
The price gap between CCR and RCR has narrowed considerably, shrinking from $1.17 million in 2018 to $310,000 in 2024, making city-fringe developments increasingly attractive alternatives.
Transaction volumes in prime CCR are moderating as buyers become more discerning, with a notable shift toward owner-occupiers and long-term residents rather than speculative investors. High-net-worth individuals remain key market participants but demonstrate increased scrutiny regarding capital gains potential in the current environment. Urban regeneration initiatives across city-fringe areas are driving demand away from traditional CCR luxury developments. Meanwhile, foreign purchases represent just 2% of new sales and 1.4% of resales, reflecting subdued international buyer interest. For property investors considering their legacy planning, understanding intestate succession rules becomes crucial as real estate often represents the largest component of personal wealth portfolios.
Despite current softness, a looming supply squeeze projected for late 2025 could fundamentally alter market dynamics, as developers display restraint in land acquisition and project launches while managing inventory effectively. Lower unsold stock in CCR is anticipated as developers time launches strategically ahead of potential supply tightening, creating scenarios for price support or rebound beyond 2025.
This supply-side constraint, combined with persistent demand for prime locations, suggests the current softer pricing may represent a temporary market adjustment rather than a sustained downward trend.
