CCR demand rebounds despite foreign buyer pullback: Is pricing the new catalyst?

Demand for new private homes in Singapore’s Core Central Region (CCR) rebounded sharply in 2025, even as foreign buyer participation fell to historic lows following the April 2023 cooling measures.

This recovery — driven largely by local buyers — comes amid a narrowing price gap between CCR and Rest of Central Region (RCR) homes, reshaping buying patterns and redefining the CCR’s traditional positioning as a luxury, investor-led segment.

Supply and demand in CCR

Foreigners made up a significant share of purchases of new homes in the CCR, averaging 17% between 2015 and 2022. This eased to 10.7% in 2024 after the government raised the additional buyer’s stamp duty (ABSD) on foreigners purchasing residential homes to 60% in April 2023. It contracted further to 4.7% in 2026 to date.

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Despite the sharp increase in the ABSD for foreigners, demand for new private non-landed homes in the CCR in 2025 jumped fivefold to 1,916 units from 378 units in 2024.

This suggests that the CCR market may be undergoing a structural shift, with local buyers increasingly filling the gap left by foreign purchasers.

Rapid compression in CCR pricing premiums

One key driver is the rapid compression in CCR pricing premiums. The median price gap between the CCR and the RCR narrowed to just 10.1% in 2025, nearly halving from 21.5% in 2024. This convergence has effectively repositioned CCR homes from a luxury niche into a more accessible upgrade option for Singaporean buyers.

As a result, the proportion of purchases of new homes in the CCR by Singaporeans rose to a high of 82.4% in 2025, compared with 67.7% between 2015 and 2022. The proportion of Singaporean buyers has hovered around 78% in 2026 to date.

Around 82% of new homes bought by Singaporeans in the CCR in 2026 to date were priced around $3 million. Among these buyers, 16.1% had an HDB address, while 55.8% had a private residential address.

This points to a growing trend of right-sizing rather than traditional upgrading, with existing private homeowners adjusting their housing choices based on lifestyle needs, location preferences and cost considerations.

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Taken together, these trends suggest that the sweet spot for CCR developments may lie in catering primarily to local buyers, with about 80% of Singaporean buyers purchasing CCR homes priced at around $3 million.

Turf City as the next test bed

Within this evolving landscape, the redevelopment of Turf City, in the CCR, represents one of the most significant new residential transformations in Singapore, following the Greater Southern Waterfront.

Spanning approximately 176ha, the estate is expected to yield between 15,000 and 20,000 homes across both public and private housing segments.

Envisioned as a car-lite precinct, it will be supported by future transport infrastructure, including the upcoming Turf City MRT Station on the Cross Island Line (expected in 2032), as well as existing connectivity via Sixth Avenue MRT Station on the Downtown Line.

To kick-start development, the government released two sites for private residential use in 2025 and 2026. The first project, Dunearn House, opened for preview on July 10 and is scheduled for launch on July 25.

As the inaugural private residential development in the precinct, the condo’s launch will provide an early indication of how buyers respond to a new CCR micro-market shaped by evolving demand dynamics.

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Price anchoring in new residential estates

Singapore homebuyers have consistently shown strong receptiveness towards new residential estates, recognising the long-term growth potential and capital appreciation these developments can offer. This was evident from the strong launch performance of projects such as Tengah Garden Residences and Vela Bay in the upcoming Bayshore precinct.

Tengah Garden Residences has emerged as the best-selling project in 2026 so far, achieving a near sell-out, while Vela Bay recorded robust sales and set a new benchmark price in the OCR in April.

Historical precedents also suggest that the first project in a new precinct often establishes pricing benchmarks. For example, Lentor Modern had an average selling price of more than $2,100 psf. Subsequent launches in Lentor referenced Lentor Modern’s prices.

Early buyers of the project have since seen notable gains, with sub-sale transactions registering average profits of more than $300,000 and peak gains exceeding $500,000.

If this pattern holds, Dunearn House — being the first launch in Turf City — could play a similar role in anchoring future price expectations within the precinct. Moreover, the neighbouring plot was sold at $1,625 psf per plot ratio (psf ppr), compared with Dunearn House’s land price of $1,410 psf ppr, reflecting developers’ confidence in Turf City.

At the same time, Turf City’s unique positioning within a predominantly landed enclave could reshape perceptions of the CCR living environment. Unlike the traditionally dense and premium character associated with the CCR, the precinct may offer a more spacious and liveable alternative, supported by its master plan and future transport connectivity.

Demographic trends and latent demand

As Singapore becomes a super-aged society, more seniors may choose to right-size from their larger landed or non-landed homes as they transition into retirement. This could drive demand for non-landed properties, particularly in established districts such as Bukit Timah, where familiarity and proximity remain strong pull factors.

As at 1Q2026, the Bukit Timah Planning Area comprises over 10,000 landed homes and more than 22,000 non-landed units, representing a substantial pool of potential demand.

Developments such as Dunearn House may appeal to this segment, offering a combination of location familiarity, modern amenities and more efficient layouts. Buyers who purchase units at Dunearn House may potentially reap the benefits in the years ahead.

Shifting CCR paradigm

With a growing domestic buyer base, narrowing price differentials, and a major new precinct coming onstream, the CCR market may be entering a new phase — one defined less by foreign capital and more by local owner-occupier demand.

Pricing, in turn, has become a more important catalyst in bridging the gap between the CCR’s traditional positioning and broader market accessibility.

The launch of Dunearn House will provide an early indication of how this shift translates into actual market performance, in terms of pricing resilience and market absorption in the months ahead.

Turf City could mark a fresh phase of urban living — and a test case for the changing dynamics of the CCR market.