In the past 5 years, CCR’s price growth has been very slow and the gap between CCR, RCR, and OCR has closed significantly. For a CCR freehold at an average of $2250 psf sold in 2024, should it be catching up with the growth seen in other regions, especially for a freehold?

The narrowing price gap between the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR) has been a significant trend over the last five years in Singapore’s private property market. Historically, CCR properties commanded a much higher premium, but RCR and OCR prices have risen much faster, while CCR growth has remained subdued. For example, in early 2025, annual price growth in the CCR was just under 2%, compared to over 7% for the RCR and nearly 4% for the OCR.

In 2024, a freehold (FH) CCR property transacting at an average of $2,250 per square foot was aligned with the slowed CCR price trajectory. Several factors contributed to the limited price growth in CCR:
- Higher Additional Buyer’s Stamp Duty (ABSD) and cooling measures dampened demand for luxury and investment-grade homes, hitting CCR hardest since this segment traditionally attracts investors and foreigners.
- The surge in new launches and stronger upgraders’ demand in the RCR and OCR supported quicker price increases in those segments, as local buyers shifted focus from the CCR’s lofty price points to more accessible options.
- A more realistic price premium for new CCR launches now mirrors resale prices, compressing the pricing gap and diminishing the advantage of CCR properties.

Looking forward, there are signs of potential catch-up:
- In 2025, CCR prices showed the strongest quarterly rebound (3% in Q2), outpacing both the RCR and OCR, whose growth rates moderated or even slipped. This may signal the start of a new cycle where “value buys” in the CCR attract buyers searching for long-term capital growth and better rental yields.
- Supply in the CCR remains relatively stable compared to the previous glut, and developers are launching new projects at more competitive prices.

However, any catch-up is likely to be gradual:
- Ongoing cooling measures and macroeconomic caution will continue to weigh on buyer sentiment, especially for big-ticket CCR homes.
- RCR and OCR properties are now viewed as more affordable “proxies” for city living, maintaining demand and limiting the extent of CCR outperformance.

In summary, while a CCR freehold property at $2,250 psf in 2024 may have better catch-up potential relative to the last five years, price growth is expected to be measured, not explosive. The environment still favours sustained, moderate increases rather than rapid spikes, but the CCR may slowly regain ground as buyers reassess value in prime-located freehold homes.