Singapore's CCR Price Drop: What You Need To Know
- CCR price softness created relative value versus the mass market.
- Foreign-demand constraints (60% ABSD) weigh on prime recovery.
- Patient buyers can find prime entry points.
Remember the pre-pandemic days when foreign buyers dominated the Core Central Region (CCR)? Things are shifting. A 2023 cooling measure plus rising rates changed the game — as of mid-2024, CCR prices dipped ~1.9% year-on-year, with transaction volumes down 34.6% to just 168 units in May 2024.
CCR vs RCR vs OCR (June 2024)
| Region | Avg Price (psf) | MoM | YoY |
|---|---|---|---|
| CCR | $2,600–$3,800 | −0.6% | −0.2% |
| RCR | $1,800–$2,600 | +1.3% | +6.4% |
| OCR | $1,200–$1,900 | 0.0% | +5.7% |
CCR prices have stagnated while the RCR (up 6.4% year-on-year) and OCR (up 5.7%) show more resilience. The widening gap makes the CCR look like an undervalued gem poised for a rebound.
Three Reasons Behind the Drop
Economic conditions — inflation, higher rates and geopolitical tension have made investment-focused CCR buyers cautious. Government policy — the foreign ABSD doubled from 30% to 60%, pricing out many foreign buyers who traditionally drove CCR demand. Changing buyer behaviour — local HDB upgraders are buying, but more in the relatively affordable RCR and OCR, and for own-stay rather than investment.
Investment Case: Draycott vs Cuscaden Reserve vs 19 Nassim (3-bedders)
| Project | Avg PSF | From High | Rental Yield | Buyers (SG) |
|---|---|---|---|---|
| The Draycott (freehold) | ~$2,740 | −14.6% | ~2.1% | 61.1% |
| Cuscaden Reserve (99-yr) | ~$3,054 | −20.3% | ~3.4% | 75.2% |
| 19 Nassim (99-yr) | ~$3,366 | −13.8% | ~3.3% | 68.8% |
The Draycott stands out as an undervalued freehold with the lowest psf and strong long-term appreciation potential; Cuscaden Reserve offers modern luxury and the highest yield; 19 Nassim offers boutique exclusivity.
Best Entry Point
Given current dynamics, the best entry in the CCR is around S$2,500–$2,800 psf for established properties. By investing now — before the market rebounds — you position for future price increases.