The new face of prime living: How smaller homes are broadening the CCR’s appeal

Smaller condo units in the Core Central Region (CCR) are attracting a more diverse mix of buyers — from young professionals purchasing their first city-centre property to families seeking greater convenience, investors looking for long-term value, and empty-nesters rightsizing from larger homes.

Recent CCR project launches have posted robust take-up rates, reflecting sustained demand for residences in Singapore’s prime districts.

Analysts note that buyers are drawn to the region for different reasons depending on their housing needs and stage of life, from its connectivity and amenities to the prestige of a prime address and its investment potential.

Read also: Condo prices hit new highs, driven by prime and city fringe properties

The decision also reflects changing housing preferences rather than a simple pursuit of size.

“As lifestyles continue to evolve, we expect this preference for well-located, efficiently designed homes to remain an important trend across Singapore’s private residential market,” says Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI).

More appetite for compact homes

Demand for smaller non-landed homes in the CCR has strengthened this year.

Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group, notes that transaction volumes of homes that measure less than 800 sq ft have exceeded the levels seen over the same period in both 2024 and 2025.

Caveat data analysed by Realion show that 120 non-landed homes measuring less than 500 sq ft, as well as 507 homes measuring between 500 and 800 sq ft, changed hands in the first five months of 2026.

Specifically in the new-launch market, PropNex found that sales of new CCR non-landed homes that were below 600 sq ft had climbed from 83 units in 2024 to 385 units in 2025.

The agency’s research team attributed the increase mainly to more new private homes being launched in the CCR last year, with 2,618 units put on the market in total — the highest annual figure in four years.

Within the ‘budget sweet spot’

While smaller homes are generally pricier on a psf basis than larger apartments, their more modest size translates into a lower price quantum than larger units, making them within reach of more buyers.

Read also: Wing Tai sets record for CCR sales in 2025: Sells 88% of River Green on launch weekend at average price of $3,130 psf

For non-landed private properties measuring less than 500 sq ft in the CCR, the median price stood at $2,998 psf in the first half of the year (as at June 14). That is 27.4% above the median of $2,354 psf for large homes measuring at least 1,600 sq ft, Sun notes.

In terms of overall transaction values across regions, PropNex’s analysis of Realis caveat data found that the average transacted price was about $1.54 million this year, as at June 14, for smaller new non-landed properties measuring below 600 sq ft in the CCR.

It is slightly higher than that of units of comparable sizes in the Rest of Central Region (RCR) and Outside Central Region (OCR), which averaged about $1.41 million and nearly $1.5 million, respectively, over the same year-to-date period.

Kelvin Fong, CEO of PropNex, highlights that the average transacted price of these smaller CCR new homes sized below 600 sq ft had a “relatively trim” premium of only about $39,000 or 2.6% over that of the OCR.

“At this price differential, the CCR unit may be seen as a better purchase among some segments of buyers, such as investors or single-person households who prefer a more central residential address,” he adds.

Price data indicates that smaller units in the CCR are more affordable than larger units in the RCR and OCR.

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A potential “crossover” among the different submarkets may be in the middle band, where the average price of 600–800 sq ft CCR units sold was about $2.23 million, Fong says.

That is lower than the average price of bigger, 800–1,200 sq ft units that were transacted in the RCR ($2.75 million) and OCR ($2.35 million).

It suggests a buyer with that budget range can choose between a smaller, centrally located unit or a larger suburban or city-fringe unit, depending on whether a smaller home will adequately meet their needs.

Fong adds that many smaller CCR units fall within the “budget sweet spot” of below $2.5 million for most buyers.

Transaction prices in the region averaged about $1.4 million for new one-bedders in selected projects, and around $2 million for two-bedders, going by PropNex’s new-launch weekend sales data.

Connectivity, layout flexibility and growth upside

Analysts say that buyers of smaller CCR condo units, anecdotally, include a mix of young singles and professionals, families, both local and foreign investors, and older homeowners looking to rightsize. Detailed demographic data is not publicly available.

The decision to purchase a smaller CCR property is driven by different considerations depending on a buyer’s housing needs and stage of life.

Younger households usually focus more on connectivity to workplaces, layout efficiency and flexibility for future family formation, as well as proximity to schools.

SRI’s Sandrasegeran points out that for younger families, this is likely a conscious lifestyle decision instead of simply a compromise on space. “Being closer to workplaces can significantly reduce commuting time, allowing parents to spend more time with their children,” he says.

Moreover, there is greater day-to-day convenience when they can be near established schools, childcare centres, healthcare facilities, public transport, lifestyle amenities and recreational options.

“For some households, these location advantages can outweigh the benefits of having a larger home farther from the city centre,” Sandrasegeran adds.

In addition, Fong of PropNex notes that younger households may prefer unit types that can accommodate children or evolving household needs over the next few years.

Meanwhile, younger investors may view such homes as a stepping stone, given the potential future growth upside.

The premium location might help them achieve higher resale prices or stronger capital gains over time, notes Sun.

She adds that some investors also hope to generate significant profits that can be used later to buy a bigger condo home in the suburbs or city fringe after marriage.

Generally, buyers may opt for a smaller home in the CCR despite the higher psf prices because they value the proximity to the Orchard shopping belt, popular schools in Bukit Timah and workplaces in the CBD. Others appreciate the wider availability of freehold properties in the region, Sun says.

In any case, these housing decisions are not necessarily permanent for all.

For younger families in particular, a smaller CCR home can represent a stage in their housing journey and not a final destination, Sandrasegeran highlights.

As families grow and their space requirements change, some owners may eventually upsize to bigger homes in the RCR or OCR. Others may choose to remain in the CCR if their lifestyle priorities continue to favour accessibility and convenience, he notes.

Lifestyle and unlocking value in later years

As for affluent empty-nesters and retirees, priorities tend to centre around convenience, lifestyle and ageing-in-place considerations.

These older buyers often look for homes that are easier to maintain, and near amenities, healthcare facilities as well as friends and family members, says Fong.

Those rightsizing from landed homes or larger condos and flats may want to tap into their housing equity while preserving part of the funds from the sale of their previous home for retirement, Fong continues.

Age offers one indication of who is buying. According to anecdotal data tracked by the PropNex sales team for transactions done by the agency during launch weekends, buyers aged 30 to 39 accounted for the largest share of smaller CCR new-launch units — both one-bedders and two-bedders — that were sold, making up 34.8% of sales.

This was followed by those aged 40 to 49, representing 28%, and buyers aged 50 and above, at 19.9%. Buyers aged 29 and below accounted for the smallest proportion, with 17.3% of sales.

The findings were derived from seven CCR projects that debuted in 2025 and 1H2026: Aurea, River Green, The Robertson Opus, UpperHouse at Orchard Boulevard, Skye at Holland, Newport Residences and River Modern.

A home better suited to a new stage of life

For the Chias, a couple in their 80s, changing housing needs, convenience and the opportunity to free up capital all played a part in their decision to move into a smaller home.

The couple have lived in a District 11 condo for the past 16 years after moving from their Holland Road bungalow, where they had resided for more than two decades.

“There was a lot of wasted space after our children moved out. Many parts of the house were hardly used,” recalls the wife.

As they got older, the couple also found it difficult to manage the staircase linking the two floors in the bungalow. They originally wanted to purchase a penthouse, but realised it might not help with accessibility either as many penthouses were duplex units.

Instead, the Chias opted for a smaller apartment, attracted by the long-term investment potential and the convenience of the neighbourhood.

“We were looking for a property near town, to be near amenities such as supermarkets, food courts and malls,” the wife adds.

The move also allowed them to unlock the value of the landed home. Besides purchasing one unit for their own stay, they used part of the sale proceeds to acquire three more condo units in prime districts, which they now rent out.

What could sustain demand

PropNex’s Fong expects demand for smaller CCR homes to remain supported by affordability considerations, lifestyle preferences and supply dynamics.

A diverse group of purchasers, including well-heeled singles, young couples, families, investors and older homeowners looking to rightsize, will likely be drawn to the segment.

Shrinking household sizes and the growing proportion of one-person households could also generate demand, Fong adds.

On the supply side, with several Government Land Sale (GLS) sites awarded recently in the CCR, the region’s pipeline of new homes will gradually increase.

“Given that land prices for CCR GLS sites have generally trended upwards, developers may likely incorporate a good selection of smaller units into their projects, to keep overall price quantums within reach of a broader pool of buyers, even as psf prices are expected to rise,” Fong says.

Realion’s Sun expects investors to continue favouring smaller homes for their affordability as prices in CCR hold firm. That said, ultra-wealthy buyers are likely to remain active in the market for larger units because of their long-term value and appeal as legacy assets.

Sandrasegeran of SRI concludes that buyers today are increasingly evaluating the overall quality of living — balancing location, connectivity, amenities, commuting time, lifestyle and affordability alongside the amount of living space.

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Designing compact homes

Smaller homes need not mean compromised comfort. With thoughtful design, trading space for a more convenient location can still deliver a liveable home.

Angela Lim, director and co-founder of interior design firm SuMisura, notes that most homeowners — from young professionals and families to retirees — share a desire for “stress-free living”, in homes that are easy to maintain and suited to their evolving lifestyles.

For young professionals, who often expect their residences to double as workspaces, sliding acoustic panels, fluted glass partitions and bespoke study alcoves can help create a distinct visual shift between work and leisure, says Lim.

Transformable and modular furniture has also become a staple of compact-home design, with fold-down desks, extendable dining tables and Murphy beds maximising functionality while saving space.

Meanwhile, families with children tend to prioritise creating distinct yet connected living zones. Sliding glass partitions or movable walls can create temporary separation between children’s spaces and communal areas while maintaining visibility for parents.

For empty-nesters, the focus is usually on ageing in place. Slip-resistant, level flooring reduces tripping hazards, while removing non-structural walls can widen walkways and improve accessibility.

When the Chias, a couple in their 80s, first moved from a bungalow to a condo unit, the new place felt rather cramped. They thus requested their interior designer to install plenty of mirrors, “to fool us into thinking the apartment was twice the size”.

SuMisura’s Lim says that strategically placed floor-to-ceiling mirrors are among the most effective ways to create the illusion of a larger home.

When positioned opposite windows, mirrors reflect natural light and views, visually expanding the space while creating a greater sense of depth.

She adds that continuous flooring throughout the home can further blur the boundaries between rooms, making the space feel more open and spacious.