As Singapore strides into 2025, the Core Central Region (CCR) property market, often seen as the heart of luxury real estate, continues to capture attention with its steady yet nuanced performance. Prices in this elite area grew by a modest 0.6% quarter-on-quarter and 1.7% year-on-year in Q1 2025, reflecting a calm yet resilient trend.
Despite a quieter market, CCR properties posted a 4% growth in 2024, and over five years, prices have climbed by 14.7%. However, many buyers still misjudge this market, overlooking both its challenges and hidden opportunities.
Even with a quieter market, CCR properties saw 4% growth in 2024 and 14.7% over five years, yet buyers often miss hidden opportunities.
One common misunderstanding is the perception that CCR is an easy win for investors. With a hefty 60% Additional Buyer’s Stamp Duty (ABSD) rate for foreigners, international interest has cooled, shifting the buyer pool toward high-net-worth Singaporeans, permanent residents, and new citizens. Domestic buyers now dominate the luxury segment, showing selective tastes, while foreign investors hesitate. This shift highlights how local wealth and stability continue to drive demand in CCR (local wealth drive). The increased ABSD has prompted many foreign buyers to reconsider investment routes, particularly when comparing Singapore to regional competitors like Hong Kong regional comparisons.
Government cooling measures further temper activity, yet, surprisingly, this creates a kind of stability—prices hold firm despite lower transaction volumes, thanks to a limited supply of new launches. Additionally, the ongoing shortage in housing supply across Singapore continues to bolster CCR’s market resilience (housing supply shortage).
Another misstep is underestimating the market’s complexities. Aging property stock in CCR poses challenges, and with fewer new options in 2025, buyers might feel stuck. Add to that the rise in distressed property sales across Singapore, and it’s easy to see why some get jittery.
But here’s the flip side: limited supply supports long-term pricing, and the luxury segment retains value. Compared to the Rest of Central Region’s 6.5% year-on-year growth or Outside Central Region’s 38.1% five-year appreciation, CCR’s steadier pace might even be a safer bet for the cautious.
Looking ahead, Singapore’s real estate market is projected to hit USD 49.64 billion in 2025, with a positive long-term outlook for CCR despite short-term hurdles.
