What is the CCR sales trend prediction moving forward?

For the Core Central Region (CCR) of Singapore, several trends and predictions can be outlined for the upcoming period:

Price Growth

Despite the impact of recent cooling measures, including the increased Additional Buyer’s Stamp Duty (ABSD) for foreigners, the CCR is expected to see robust price growth. The resale market in the CCR has been driving price increases, with a 3.4% quarterly price growth in the first quarter of 2024, which is significantly higher than the overall market average. This trend is anticipated to continue, with the CCR property price index expected to grow by 6% to 8% for the year.

Demand from Resale Market

The low supply of new units in the primary market has pushed buyers towards the resale market, which has contributed to the strong price growth in the CCR. This demand from the resale market is likely to persist, supporting the prices of high-end properties in the region.

Foreign Buyer Impact

Although the higher ABSD rates have reduced the number of foreign buyers, they still constitute a significant portion of buyers in the CCR, particularly for prime residential properties. However, Singaporean buyers have been taking up the slack, with an increasing proportion of private homes being purchased by locals.

Supply and Demand Dynamics

The higher supply of units in other regions, such as the Rest of Central Region (RCR) and Outside Central Region (OCR), is expected to stabilize prices overall. However, the CCR's limited new supply and strong demand, especially in the resale market, are likely to keep prices in this segment buoyant.

Market Outlook

The overall private residential property market is expected to fare reasonably well, despite economic uncertainties and higher interest rates. The CCR, in particular, is poised to outperform other market segments due to its strong underlying demand and limited new supply.

In summary, the CCR sales trend is expected to remain strong, driven by robust demand in the resale market, limited new supply, and ongoing interest from both local and foreign buyers, albeit at a reduced level due to the cooling measures.