While Singapore’s Core Central Region (CCR) recorded modest price appreciation of 15.1% between 2020 and Q1 2025, the Outside Central Region (OCR) demonstrated remarkable growth momentum with a 40.6% surge during the same period, nearly matching the Rest of Central Region’s (RCR) 42.2% increase and establishing OCR as one of the strongest-performing segments in Singapore’s residential property market.
The OCR’s exceptional performance culminated in average new launch prices reaching $2,539 per square foot in Q1 2025, though this remains below RCR’s $2,886 psf and CCR’s $2,844 psf. This maintains the region’s affordability advantage of approximately 30-40% compared to central areas.
Despite recording a modest 0.3% quarter-on-quarter increase in Q1 2025 and annual growth of 3.7% for 2024, the price momentum has moderated compared to previous years’ accelerated gains.
Robust demand from HDB upgraders constitutes the primary driver behind OCR’s price surge, particularly as the resale HDB index climbed 8.07% year-on-year in late 2024. This has narrowed the gap between public and private housing sectors.
The decline in interest rates from 4.5% to 3.5% enhanced affordability and purchasing power, while first-time buyers increasingly gravitated toward the Executive Condominium segment. In Q1 2025, 830 units were sold, compared to 528 at the end of 2024. Properties with BCA Green Mark certification command premium pricing as environmental consciousness grows among buyers.
Suburban growth nodes including Punggol, Sengkang, and Jurong emerged as key beneficiaries of infrastructure developments such as the Jurong Lake District and Cross Island Line projects. These projects stimulated buyer interest and supported sustained transaction volumes.
Government land sales in suburban regions continued to introduce new projects at competitive pricing, attracting buyers seeking long-term value propositions. Meanwhile, local buyers are seeking value opportunities in the OCR as CCR price recalibration has shifted buyer focus toward more affordable alternatives.
The OCR market maintains balanced supply-demand dynamics, though selected districts face oversupply from multiple new launches. This provides buyers with enhanced negotiating power, particularly for older developments.
Vacancy rates remain moderate, with rental yields steady at 3-4%. The resale market benefits from upgraders seeking larger units at reasonable prices, contributing to the region’s sustained appeal among younger buyers and families favoring affordable, family-friendly environments. OCR resale transactions dominated the market, comprising 52% of volume in 2024.
