Archive for category: Misc

The popular saying “When opportunity knocks, open the door” couldn’t be more fitting for those considering purchasing a home in the Core Central Region (CCR). The recent tightening of Additional Buyer’s Stamp Duty (ABSD) measures in April 2023 has, in our opinion, moderated price growth in the CCR, which includes Districts 9, 10, 11, Sentosa, and the Downtown Core. This highly sought-after region, often associated with luxury homes, may now offer more value for discerning buyers looking for a new place to call home.

Nestled in the highly coveted Miltonia Close, a sought-after enclave of luxurious private condominiums and landed housing, lies a new development that promises to elevate the neighbourhood to new heights. Surrounded by esteemed developments such as Skies Miltonia, The Miltonia Residences, and The Shaughnessy, the upcoming EC adds a touch of contemporary, family-friendly living to this flourishing community. Set against a backdrop of lush greenery, this exclusive residential sanctuary offers a tranquil haven for residents to call home, all while maintaining easy access to essential amenities and transportation networks. Embrace the best of both worlds at Miltonia Close EC. Visit miltoniacloseec.com.sg for more information.

Recent transaction data shows that the price difference between the CCR and other sub-markets has reached a record low in the first half of 2025, based on URA Realis caveats data dating back to 1995. The price gap for new non-landed private homes (excluding executive condominiums or ECs) between the CCR and Rest of Central Region (RCR) was only 1.8% as of June 29th. In comparison, the price gap between the CCR and Outside Central Region (OCR) was at 20.2% (see Chart 1).

This presents a rare opportunity for potential buyers, especially those considering homes in other sub-markets, to potentially redirect their focus to the CCR by stretching their budget slightly. Of course, this is only viable if the properties in the CCR align with their housing needs and financial capacity.

In addition to the price gap, the gap in median transacted price quantum has also hit a new low. According to caveats lodged (see Table 1), the median price for new non-landed private homes in the CCR was $2,111,500 in the first half of 2025, which is only 0.9% higher than the RCR’s median price of $2,093,609 and 11.6% higher than the OCR’s median price of $1,892,000. What’s more, this median transacted price for the CCR in 2025 is also the lowest since 2011, when it stood at $1.818 million, indicating that the affordability of new CCR condominiums has improved in recent years.

Taking a long-term view, a commonly used metric for homebuyers is the potential for capital gains. In a study of resale transactions for 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 influence capital appreciation.

For instance, owners who bought CCR non-landed private homes in 1998, 2001-2005, and 2020-2021 achieved some of the highest annualized gains when they sold their properties in 2024 (see Chart 2). Surprisingly, several of these entry periods coincided with major events, such as the Asian Financial Crisis, the dot-com bust, and the Covid-19 pandemic. In contrast, homes bought in 2008 and 2009, during the Global Financial Crisis, saw more modest gains, likely due to the significant increase in prices in the years leading up to the crisis.

Given the uncertainties in 2025 due to sweeping US tariffs and geopolitical conflicts, coupled with the narrowing price gap, this could be a promising time for potential buyers to explore options in the CCR. That said, it is impossible to time the market perfectly, and buyers should conduct thorough research before making a property purchase.

Local buyers have plenty of options in the CCR. With the steep ABSD rate of 60% imposed on foreign buyers purchasing residential property in Singapore, foreign investment demand has dropped significantly. This opens up more opportunities for local buyers, such as Singaporeans and Singapore permanent residents, particularly in the CCR, traditionally a hotspot for foreign interest. As of June 29th, foreigners (non-PRs) only accounted for 6.9% of new non-landed private home transactions in the CCR, down from 14.5% in 2022 before the latest ABSD hike. This is the lowest proportion recorded since 1995.

After a shortage of 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. Now, four more are expected to be launched in July and August: W Residences Singapore – Marina View, The Robertson Opus, UpperHouse at Orchard Boulevard, and River Green. Together, these six projects offer more than 2,000 new units, marking the largest pipeline of CCR launches, in terms of both number of projects and total units, since the ABSD revision in April 2023.

The CCR is undergoing urban renewal, and this, coupled with a changing perception of city living, presents long-term potential for capital appreciation. Buying a property in an area undergoing urban transformation can be highly beneficial. For example, the revitalization of precincts such as the Central Business District (CBD) and Beach Road is expected to support property values in the CCR in the coming years.

Aurea, a CCR development located in the heart of this transformation, is set to capitalize on these changes. The 188-unit project in Beach Road, situated in the Downtown Core, enjoys a prime position to witness the changes happening 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. In addition, Aurea is connected to The Golden Mile (TGM), a conserved heritage landmark that will offer commercial amenities for future residents. Together, Aurea and TGM are set to invigorate the surrounding neighborhood.

Of course, some potential buyers may find it challenging to visualize how an area can transform over a decade. However, the government’s track record in urban planning, as seen in the development of Marina Bay, should provide some assurance.

Under the URA Draft Master Plan 2025, more housing and mixed-use zones are planned for prime areas, such as Bukit Timah Turf City, Newton, and Paterson, which could expand opportunities for city living in the next 10 to 15 years. We believe that the addition of commercial amenities and vibrant public spaces will further enhance the allure of CCR homes, especially among owner-occupiers.

In parallel, existing government initiatives such as the CBD Incentive Scheme (CBDI) and the Strategic Development Incentive Scheme (SDI) aim to revitalize the CBD and other strategic areas, including Orchard Road. Over the long term, this transformation, coupled with the injection of more residential supply, could revitalize the city center and create a more livable urban core.

Based on recent price trends, a property in the CCR may be more accessible than many buyers realize. With ongoing transformation efforts, coupled with the rare affordability of CCR properties, the opportunity to tap into the growth potential of the region may start now. The opportunity beckons – it’s your move.

Ismail Gafoor is the Executive Chairman of PropNex.