Could you analyze why there was a sharp drop in the average psf at The Avenir in 2025?

The sharp drop in average per square foot (psf) prices for The Avenir in 2025 is mainly attributed to a combination of factors affecting the Core Central Region (CCR) as well as broader market trends. Key causes include:

- Increased supply of new launches in the CCR, including areas like Orchard and River Valley where The Avenir is located. Developers released more new projects, raising competition and giving buyers more choices, which placed downward pressure on prices for existing projects.
- Weaker demand from mass market buyers. The CCR’s higher price points generally attract a more limited pool of buyers, mostly high-net-worth locals and foreigners. As mass market buyers tend to focus on more affordable regions, the pick-up for CCR units was slower, especially with more supply coming onstream.

- Slower overall price growth. The Singapore private property market in 2025 saw a general cooling in price increases. While some regions such as the city-fringe and suburbs maintained moderate growth, prime districts like the CCR experienced more muted resale activity and steadier prices, rather than strong upward moves.

- Government policy adjustments such as revisions to Seller’s Stamp Duty (SSD) and tighter measures to curb short-term speculation. These reinforced a focus on owner-occupiers rather than speculative transactions, impacting the velocity and volume of high-value unit sales typical in CCR developments like The Avenir.

- Cautious economic sentiment. Geopolitical uncertainty, trade tensions, and a soft GDP growth outlook have made both buyers and developers act more prudently, further damping price momentum especially in the luxury segment.

Therefore, the sharp drop in average psf at The Avenir in 2025 is largely a reflection of increased competition from new launches in the Core Central Region, continued moderation in the overall property market, and demand shifts toward more affordable segments while government policies and cautious sentiment add further cooling effects.