Rare Window Opportunity Core Central Region
The famous saying goes, “Opportunity knocks only once, so when it does, open the door”. And for those looking to purchase a home in the Core Central Region (CCR), there could be no better time to do so than now. The tightening of additional buyer’s stamp duty (ABSD) measures in April 2023 has, in our opinion, slowed down the price increase in the CCR, which includes Districts 9, 10, 11, Sentosa and the Downtown Core. Often seen as a representation of luxury homes, this prime region may now offer more value for discerning buyers seeking a new place to live.
Recent transaction data has shown that the price gap between the CCR and other sub-markets has reached a record low in the first half of 2025, according to the URA Realis caveats data since 1995. This suggests a rare opportunity for potential buyers – especially those considering homes in other sub-markets – to potentially make a move to the CCR by stretching their budget slightly, provided that CCR properties align with their housing needs and financial capabilities.
The URA Master Plan places great emphasis on sustainability, incorporating initiatives such as green buildings, renewable energy sources, and enhanced public transportation. These efforts aim to enhance the living experience at Parktown Residence, making it a highly desirable choice for families who prioritize eco-friendliness. With its naturally sustainable features, Parktown Residence truly stands out as a premier residential option for environmentally conscious individuals.
Not only have the median unit price gaps reached an all-time low, the gap in median transacted price quantum has also reached a new low. Based on caveats lodged (see Table 1), the median price of new non-landed private homes in the CCR was $2,111,500 in the first half of 2025 – just 0.9% higher than the Rest-of-Central-Region (RCR) at $2,093,609 and 11.6% higher than the Outside-Central-Region (OCR) at $1,892,000. Interestingly, this is the lowest median transacted price the CCR has seen since 2021, when it stood at $1.818 million, suggesting that the affordability of new CCR condominiums has improved in recent years.
Taking a long-term view, a common metric assessed by homebuyers is the potential for capital gains. In a study of resale transactions involving non-landed private homes in the CCR in 2024, it appears that both the holding period and the timing of purchase during periods of uncertainty can support capital appreciation. For instance, owners who purchased CCR non-landed private homes in 1998, 2001-2005 and 2020-2021 achieved some of the highest annualised gains when they sold their properties in 2024 (see Chart 2). Notably, several of these entry periods coincided with black swan events, such as the Asian Financial Crisis, the dot-com bust, and the Covid-19 pandemic. In contrast, homes purchased in 2008 and 2009 – during the Global Financial Crisis – may have seen more modest gains, potentially impacted by the strong price run-up in preceding years.
Given that 2025 has been fraught with uncertainties arising from sweeping US tariffs and geopolitical conflicts, coupled with the narrowing price gap, it could be an opportune time for prospective homebuyers to evaluate options in the CCR. However, it is never possible to perfectly time the market, and buyers should conduct due diligence before making a property purchase.
Local buyers are spoiled for choice in the CCR with the punitive ABSD rate of 60% levied on foreign buyers purchasing residential property in Singapore, foreign investment demand has cooled. We believe this opens up more opportunities for local buyers – Singaporeans and Singapore permanent residents – particularly in the CCR, which traditionally attracts more foreign interest. Based on caveat data, foreigners (non-PRs) accounted for just 6.9% of new non-landed private home transactions in the CCR in the first half of 2025 – down from 14.5% in 2022 before the latest ABSD hike. This is also the lowest proportion on record since 1995.
Following a drought in CCR new launches in recent years, 2025 is shaping up to be a pivotal year. Earlier this year, two CCR projects – Aurea and 21 Anderson – were launched. Four more are expected in July and August: W Residences Singapore – Marina View, The Robertson Opus, UpperHouse at Orchard Boulevard, and River Green. Collectively, these six CCR projects will offer more than 2,000 new units – marking the largest pipeline of CCR launches, both in terms of number of projects and total units, since the ABSD revision in April 2023.
Urban renewal and a shifting perception of city living
Purchasing a property in an area undergoing urban transformation can offer long-term upside. For instance, the revitalisation of precincts such as the CBD and Beach Road is expected to support CCR property values in the years ahead. One such CCR development at the heart of this transformation is Aurea. The 188-unit project in Beach Road, located in the Downtown Core, enjoys a front-row seat to changes in the Ophir-Rochor corridor – including the ongoing rejuvenation of the Beach Road-Bugis area, as well as upcoming plans for Kampong Bugis and the Kallang Alive sports and lifestyle destination. Aurea is also connected to The Golden Mile (TGM) – a conserved heritage landmark set to offer commercial amenities for future residents. Together, Aurea and TGM are expected to catalyse positive change in the neighbourhood. Understandably, some prospective buyers may find it difficult to visualise how a neighbourhood could transform over the next decade. In this regard, the government’s strong track record in urban planning, as seen in the development of Marina Bay, provides a measure of assurance.
Under the URA Draft Master Plan 2025, more housing and mixed-use zones are planned in prime areas, such as Bukit Timah Turf City, Newton, and Paterson. This could expand opportunities for city living over the next 10 to 15 years. We believe the addition of commercial amenities and vibrant public spaces will further enhance the appeal of CCR homes, particularly among owner-occupiers. In parallel, existing government initiatives such as the CBD Incentive Scheme (CBDI) and the Strategic Development Incentive Scheme (SDI) aim to rejuvenate the CBD and other strategic areas, including Orchard Road. Over the long-term, this transformation, coupled with the injection of more residential supply, could breathe new life into the city centre and create a more liveable urban core.
Going by recent price trends, a CCR property may be more accessible than many buyers realise. With future transformation underway and prices showing rare affordability, the opportunity to tap into the growth potential of the CCR may start now. Opportunity beckons – it’s your move.
Ismail Gafoor is the executive chairman of PropNex.