Is It a Good Time to Invest in CCR?
- The CCR offered relative value after lagging the mass market.
- Recovery leans on foreign demand, constrained by 60% ABSD.
- Patient, well-priced entry suits prime buyers.
Is now a good time to invest in Singapore's Core Central Region (CCR)? After years of the suburbs outrunning the core, the case for prime is worth a fresh look.
The CCR's Underperformance
Since the pandemic, the CCR lagged as the RCR and OCR surged, and the 2023 hike in foreign ABSD to 60% pulled many foreign buyers — traditionally the CCR's demand base — out of the market. The result: stagnant CCR prices and a widening discount to the suburbs, even as luxury launches quietly found local and PR buyers.
Why It Looks Undervalued
Prime supply is inherently capped — Orchard, Marina Bay and Newton depend on scarce land release and en-bloc, not sprawling new estates. When OCR prices push toward $3,000 psf and the CCR barely moves, the value gap narrows, and history says the core eventually snaps back. Singapore's luxury psf also still looks reasonable against Hong Kong, London and New York.
The Case and the Caveats
The case: undervalued entry, scarcity, prestige and resilient long-term appreciation, with owner-occupier and local demand replacing foreigners. The caveats: yields are modest (often 2–3%), the segment is less liquid, and large luxury units can be harder to rent or resell. Best entry is around S$2,500–$2,800 psf for established prime projects.
The Verdict
For long-term, capital-preservation-focused buyers who can hold, the CCR in this window offers a rare chance to enter prime at a relative discount before the cycle turns. For pure yield, the RCR or well-located suburban assets may serve better. As always, the specific project, layout and price matter more than the label.