Buying a CCR Property in 2025: Is Now the Right Time?

Singapore’s housing market is divided into three distinct market segments – the Outside Central Region (OCR) with its satellite towns, where most of us grew up in, the Rest of Central Region (RCR) consisting of city fringe towns, where most Singaporeans aspire to upgrade to, and the Core Central Region (CCR) which is traditionally perceived as the home to Singapore’s most affluent and elite. But what if I told you that living in the CCR might not be as out of reach as you think?

Image 1: The CCR consists of the highlighted areas, which include postal districts 9, 10, 11, as well as the Downtown Core and Sentosa

Source: URA

What we know about the CCR

With a reputation as being home to Singapore’s wealthiest and most distinguished, CCR addresses span across District 9 (Orchard, River Valley), District 10 (Bukit Timah, Holland, Tanglin), and District 11 (Novena, Newton), as well as certain areas of Districts 1, 2, 4, 6, and 7. These additional districts contain areas like the CBD, Bugis, Tanjong Pagar, Harbourfront and Sentosa which have certain areas that fall under the CCR, and some in the Rest of Central Region (RCR).

Nassim Road, home to luxury GCB’s and condominiums is one of the wealthiest and most well-known areas in Singapore.

Famous addresses such as Nassim Road, Cairnhill, Ardmore Park, and many more all lie within the CCR, further painting the picture that living in the CCR is reserved for only the most well-to-do. While that is the case for the Good Class Bungalows, and other landed CCR properties, there are in fact other affordable private properties, or dare we say – value buys such as apartments and condominiums to be found all around the CCR!

A Narrowing Price Gap between CCR and Other Regions

In land scarce Singapore, property has become one of the greatest investment assets, and an almost surefire way to grow one’s wealth. Over the years, we have witnessed rapid development across the various regions in Singapore, with private homes popping up in all corners of the island.

Over the years, key cost drivers, such as land prices and construction expenses, have pushed new private home prices upwards. This climb is more noticeable in the RCR, and especially the OCR, where the availability of buildable plots and greater urban growth potential has resulted in more developer activity. In turn, as developers seize fresh opportunities to build new housing estates, this has contributed to growing demand, and hence, growing home prices outside of Singapore’s urban core.

Chart 1: Property Price Index (PPI) growth by market segment

Source: URA as at 28 Feb 2025, ERA Research and Market Intelligence

This growth in property prices is best reflected in Singapore’s Property Price Index (PPI).

Since 2015, the non-landed PPI for OCR and RCR properties have grown tremendously, reaching 257.3 and 223.5 respectively in Feb 2025, indicating a 108.7% and 81.4% growth respectively. In contrast, the CCR has seen a more moderate price growth of 35.8%, reaching an index value of 154.8.

This price gap can be further exemplified by a narrowing median price when comparing 99-year leasehold non-landed properties.

Chart 2: Median all sale transaction prices by year for 99y-Leasehold private (non-landed) property

Source: URA as at 28 Feb 2025, ERA Research and Market Intelligence

Traditionally, the CCR held the highest median prices islandwide, with no close comparison, being the only market segment with prices over $2,000 psf. However, over the last decade we have observed an upward trend in RCR and OCR home prices, while home prices in the CCR have been growing at an overall more moderate pace.

In fact, since 2023, the median price of RCR homes has exceeded that of CCR homes. This can be attributed to the launch of many high-profile RCR projects in the city fringe such as The Orie, and District 15 projects such as Emerald of Katong, Tembusu Grand and Grand Dunman setting new benchmark launch prices and driving transactions in the region.

Additionally, we are also seeing recent RCR projects launched extremely near the CCR-RCR boundaries such as Union Square Residences, Canninghill Piers, as well as Pinetree Hill and Nava Grove which have continued to spur on the rate of RCR price growth.

Are CCR Properties Now Value Buys?

Last year, we saw new homes in the OCR and RCR reach new benchmark prices that further narrowed down the price gap to the CCR. As the other market segments continue to peak in pricing, the CCR is starting to become an under-valued market, offering homes with similar prices to the other regions.

A great case study representing this is when we look at 2-bedroom condo units for 99-year leasehold condos. These condos are generally affordable (as far as private property is concerned nowadays), ranging from around $1.8m to $2.1m, making them a popular choice for HDB upgraders.

Here are median transaction prices for such condos in the primary market across all three market segments.

Table 1: Median prices of 99-year leasehold 2-bedroom condos

Source: ERAPro as of 4 Mar 2025, ERA Research and Market Intelligence

We can observe that there are affordable 2-bedroom CCR options available, going toe-to-toe with similar options available in other market segments. Additionally, we can observe that CCR projects offer larger unit sizes on average for their 2-bedroom units when compared to the RCR.

This frames these CCR 2-bedroom homes as feasible upgrading options for those coming from the HDB or OCR condo market, who would have traditionally turned to the RCR as the next step in their journey. When you can feasibly afford a new CCR home for a similar price quantum as in the RCR and OCR, I think we can safely say that this market segment is currently undervalued.

CCR Homes are Best Known for their Unbeatable Locations

What about the lifestyle factors when it comes to living in the CCR?

There isn’t much to be said about living in the CCR that hasn’t already been touted by its longtime residents. Living in the city centre promises an unparalleled lifestyle of convenience, featuring short commute times to dining, shopping, and other recreational activities.

Transport Infrastructure

The CCR is also extremely well connected by public transport. Being the nucleus of our city-state, the CCR features layers of connectivity. While road traffic will be congested at peak hours with people commuting in and out, there are various bus services ready to take you up, down, across, and out of town.

Additionally, with the Thomson-East Coast line fully opening last year, the region is more connected than ever, with access to all six of the nation’s MRT lines. This makes getting around the city a breeze, making it easy to visit or for family members to visit you, and to attend events and activities.

Many Good Schools in the CCR

There are a number of good schools that are located within CCR neighbourhoods too. Schools like Nanyang Primary School at Farrer Road, Henry Park Primary School at Mount Sinai and River Valley Primary School at River Valley are prominent examples of such schools, where their high application rates and their 1km priority enrolment radius means that having a home with a CCR address grants the best odds for securing a spot in one of these prestigious schools.

Endless Shopping and Activities

Going beyond its advantageous and convenient location, living in the CCR offers residents a unique, one-of-a-kind lifestyle that you cannot find anywhere else. Living in the heart of the city means that you have the entire city’s offerings at your fingertips.

Home to Singapore’s largest shopping district in Orchard Road, residents have nearby access to hours of retail fun. The various shopping malls and shophouses that can be found in the CCR provide a variety of activities to supplement your lifestyle, such as cinemas, state-of-the-art gyms and fitness classes, as well as art, dance, and wellness studios which have taken the post-pandemic world by storm.

A Whole World of Dining Options

In terms of dining options, the CCR boasts arguably the widest array of dining options of the entire island. From local eateries, and swanky restaurants to chic wine bars and cozy cafes, you are spoilt for choice when it comes to dining in the CCR. Given the metropolitan nature of city living, there is food from all cultures and cuisines waiting for you to explore.

Close Proximity to Mature Estates

Furthermore, the CCR and its surrounding areas also consist of some of Singapore’s oldest and most culturally rich neighbourhoods and estates. These include areas such as Chinatown and Tiong Bahru. With Singapore’s robust infrastructure, those staying in the CCR can visit these mature estates to patronise wet markets, hawker stalls, and much more.

Conclusion

Ultimately, living in the CCR is all about chasing a certain lifestyle, and for those we desire absolute convenience. If you find the prospect of having all the bustling city has to offer at your doorstep, and if short commute times for your daily activities are a priority for you – then now might just be the perfect time to enter the CCR market.

If you would like to find out more about CCR properties, do not hesitate to reach out to an ERA trusted advisor today.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.