Can CCR Condos Be Profitable Again? Why Investors Are Quietly Buying In

Introduction

For many property investors today, investing in a CCR condo feels like a losing game. The Core Central Region (CCR), once seen as the gold standard of prestige and long-term value is now often dismissed as a risky asset class with sub-optimal performance when compared with its RCR and OCR counterparts.

So, is it wise to invest in a CCR condo in today’s market? On the surface, the answer may seem obvious. But beneath the negative sentiment, a different story could be taking shape. 

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Why Has CCR Lost Investor Confidence?

It wasn’t long ago that Core Central Region (CCR) condos were the crown jewels of Singapore property investment. But in recent years, sentiment has shifted drastically for good reason. 

Two major headwinds have contributed to the erosion of investor confidence in this once-premium segment.

1. Unusually High Rate of Unprofitable Transactions

Singapore real estate is known to be hard assets that are well positioned for stable wealth preservation. It forms the counter balance to risk on assets in an investors portfolio. This remains true for properties in the Rest of Central Region (RCR) and Outside Central Region (OCR) region. 

But unfortunately over the last couple of years CCR properties tell a different story.

• Data shows a notable number of unprofitable resale transactions in CCR projects. especially in Marina Bay and Orchard areas.

• Projects like Marina Bay Suites and OUE Twin Peaks recorded annualised capital losses of -0.7% and -1.7% respectively, while average annualised capital gain RCR and OCR properties trends above 3%. All in all, it is rare to see property losing money in Singapore.

In contrast, notable OCR projects such as Treasure at Tampines, Parc Esta, and High Park Residences saw near-zero or zero unprofitable sales, with annualised capital gains between 4% and 5.3%.

CCR Condo Developments with notable unprofitable transactions and negative capital gain

RCR and OCR Developments with minimal unprofitable transaction and healthy capital gain

2. Subdued Price Appreciation — A Victim of Regulatory Headwinds

The second blow to CCR’s attractiveness comes from sluggish price growth relative to other regions. 

Referencing the 15 year price trend below. From 2010 to 2025, OCR private condos grew 45%, RCR by 55%, while CCR lagged behind at just 18%.

Part of the underperformance stems from policy headwinds, namely:

• 60% ABSD on foreign buyers, who traditionally form a large portion of CCR demand.
• Increased ABSD for second property investors:Singapore Citizens: from 17% to 20% and Singapore PRs: from 25% to 30%

These dual ABSD hikes weakened both the local upgrader market and foreign demand pool, driving out the traditional buyers of CCR properties.

CCR Private Condo Price Appreciation vs RCR and OCR Private Condo

The Key Reasons That Led to Poor Performance in CCR Condo

Before diving into the crux of the article which highlights the possible shift in investment narrative for CCR condo. Let’s first develop a deeper understanding of the key issues that has resulted in CCR properties suboptimal performance.

Issue #1 – The Overgeneralization of CCR as Just CBD and Orchard

One of the biggest misconceptions about investing in CCR condos is the tendency to reduce the entire Core Central Region to just CBD and Orchard.

This overgeneralization creates a flawed mental model that CCR properties are only catered to investors and does not capture any home stay buyers interest. 

But this is only part of the picture. 

A closer look at CCR’s neighbourhood breakdown reveals bright spots which are actually well suited for family home stay. 

Issue #2 – Overly Focused on Investors and Foreign Buyers

Rather than designing homes for families, many CCR launches prioritised 1- and 2-bedroom units that appealed to rental investors.

Between 2010 and 2020, developers focused heavily on foreign demand and speculative investment launching projects dominated with 1 bedroom and 2 bedroom units, featuring high $PSF pricing, and low overall quantums to entice foreign and local investors interest.

In River Valley, for instance, Espada (TOP: 2013) was made up of 204 one-bedders and only 28 two-bedders. A unit mix with 88% of units comprising of 1 bedders. In Newton, 26 Newton (TOP: 2016) pushed the model further, with around 95% of its 180 units being 1- or 2-bedders. Orchard and Cairnhill saw similar trends with Centra Studios (100% one-bedders) and Suites @ Orchard (studio and 1-bedrooms only).

A Poor Fit for Today’s Market

As foreign and investor demand shrank due to ABSD hike and source of demand started coming from homestay buyers looking for sizable units with function layout these units became a poor fit for today’s market demand.

Issue #3 – Oversized Floor Plans with Inefficient Layouts

Many older CCR condos suffer from inefficient layouts i.e. oversized balconies, planter boxes, and odd shape floor plans. These design choices, popular between 2008 and 2015, prioritised aesthetics over liveability.

Function Over Form in Today’s Market

Today’s buyers value efficient layouts that maximise utility. Fancy design features no longer command a premium — in fact, they often deter buyers looking for practicality. Inefficient layouts now represent a structural disadvantage, contributing to slower resale and weaker returns for older CCR condos.

Their thought process is as such:  A 2-bedroom unit at Luma (904 sqft) loses significant area to planters and balconies. At The Lumos (1,141 sqft), curved walls and odd-shaped voids reduce functional space. “How much of this $2 million home is actually livable?”

Inflated Quantum Despite Reasonable PSF

Older CCR condos often have inefficient layout with large floor plates which eventually translates to an affordability issue. While PSF may appear fair, inefficient layouts inflate the total quantum, pushing a unit’s overall purchase quantum above a buyer’s affordability threshold.

The challenge comes when a 2 bedroom unit overall purchase quantum comes close to that of a 3 bedroom unit in RCR or OCR. Coupled that with the shift in demand, shifting from investors to home stay buyers. This significantly erodes the value proposition of older CCR properties.

Older CCR Condo developments with Inflated Quantum despite reasonable psf

Newer 3 Bedroom Condo in the RCR with similar quantum as CCR 2 Bedroom unit

A Progressive Shift of Value Towards CCR Properties

A shift in interest towards RCR and OCR 3-bedroom units has created a herd behavior. As more buyers enter this segment, agents double down on promoting it, reinforcing demand and pushing prices up.

Listings are scarce with only 1% to 6% of 3-bedders available in top RCR projects like Clavon, Jadescape, and Parc Esta available for sale. Low resale supply further adds to the price hike. 

As prices hike further and converge with the price of CCR property. It created a quiet movement with a small pocket of investors starting to reassess their investment options in the CCR region. 

In the sections ahead, we’ll explore the evolving factors that could reshape how investors view the CCR segment.

Factors Driving the Shift Towards a Positive Narrative for Investing in CCR Property

#1 The CCR Property Layout Evolution

Recent CCR launches reflect a shift in developer’s priority. Shifting from lavish, oversized units to compact, efficient, and buyer-conscious designs.

There are two key drivers driving this change. 

GFA Harmonisation Policy

URA’s Gross Floor Area (GFA) harmonisation now counts previously exempt areas like air con ledges and balconies into a unit’s gross floor area. This incentivises developers to design more efficient and usable layouts. 

Developers Targeting Local Homestay Demand

Developers now prioritise layout efficiency and affordability to appeal to local homebuyers. This means smaller overall unit sizes, well-optimized floor plans, and lower total purchase quantums.

Example: Irwell Hill vs The Trillium

For example, older projects like The Trillium offer sheer spaciousness but at steep entry prices. A 3-bedder can go for $4.8M due to size. In contrast, newer launches like Irwell Hill Residences offer smaller 3-bedders with no bay windows or planters, maintaining a total purchase closer to $2M–$3M despite higher PSF.

This evolution marks a return to practicality in CCR. A trend that better aligns with what today’s buyers value.

New CCR Condo development with more efficient layout

#2 The Reasonable Price Quantum of New-Era CCR Properties

Modern CCR developments are breaking from the past. Thanks to more efficient layouts, smaller floor plates, and a shift toward pragmatic unit design, these new-era projects often achieve lower total purchase quantum.

Example: Kopar at Newton vs Leonie Suites 

Projects like Irwell Hill Residences, Kopar at Newton, and Martin Modern offer 2-bedders in the $1.85M–$2.07M range, significantly more accessible than older CCR resale condos like Leonie Suites or Up @ Robertson Quay, where the same 2-bedroom unit costs $2.1M–$2.35M due to their larger, less efficient layouts.

Example: Martin Modern vs Rivergate

Take Martin Modern: its 3-bedroom units feature no bay windows or planters, full-sized kitchens, storerooms, and dumbbell layouts, pricing within an affordable sweet spot of $2.0M to $2.7M range. It appeals to buyers priced out of older freehold alternatives like Rivergate ($4.1M) or Valley Park ($3.2M–$4M).

New Era CCR Development with reasonable size and price quantum

Old Era CCR Development with reasonable size and price quantum

#3 The Narrowing Land Bid Prices

A quiet but significant shift is underway — CCR land prices are narrowing toward RCR levels, driven by changes in buyer sentiment and developer behavior.

CCR Land Prices Suppressed by Demand Weakness

Developers have become cautious about CCR plots, especially in CBD-centric areas like Marina Bay and Newton. Rising unsold inventory and limited resale performance led to muted bidding activity. As a result, recent CCR land bids like Zion Road Parcel A ($1,202 psf ppr) and River Valley Green ($1,325 psf ppr) are secured at prices close to RCR land’s bid prices. 

RCR Land Prices Surging on Buyer Preference

In contrast, developers have gone aggressive on RCR sites. Strong upgrader demand has pushed RCR land bids to record highs. Bayshore Road closed at $1,388 psf ppr and Clementi Ave 1 at $1,250 psf ppr. 

Land Cost Gap Between CCR and RCR is Closing

The traditional premium that CCR held in land pricing is now significantly compressed. Some RCR plots are now priced on par or even higher than its CCR equivalents. 

CCR Land Bid Prices

RCR Land Bid Prices

#4 The Narrowing Launch Price Gaps

Developers have become more conservative with CCR launches due to past oversupply and cautious buyer sentiment. Projects like Union Square Residences ($2,848 psf) and Orchard Sophia ($2,900 psf) now enter the market at prices close to RCR new launches.

RCR launches like The Orie ($2,703 psf), Elta ($2,537 psf), and Chuan Park Residences ($2,579 psf) now sit just a few hundred dollars below CCR counterparts.

Recent RCR New Launch Average PSF

Recent CCR New Launch Average PSF

The Gap Has Compressed

What used to be a $500–$700 psf premium has narrowed to just $200–$300 psf. With RCR projects now pushing past $2,700 psf, the distinction between fringe RCR and core CCR has blurred.

Buyers are beginning to ask: why pay top dollar for RCR when CCR offers better location, prestige, and long-term upside for just slightly more?

Price Convergences of CCR and RCR Private Condos

#5 The Next Wave of CCR Profitability Data may spark a Reflexive Price Cycle

Real estate sentiment often trails behind transactional data. When a project begins recording profitable resale transactions, it builds buyer confidence, first in the development, then in the area. 

This dynamic played out clearly with Jadescape and Stirling Residences. Both faced launch skepticism in 2018 over record launch prices, but once early resale profits emerged, a second wave of demand followed, reinforcing investor’s confidence and further fueling price growth.

The same setup is now forming in the CCR.

A slate of new-era CCR launches that have recently TOP is approaching the point where the first wave of profitable resale transactions will begin to surface. With more efficient layouts and lower entry quantum, many of these projects are well-positioned to show positive returns,  setting the stage for renewed interest in the CCR.

If this data-driven confidence builds alongside the upcoming wave of CCR launches in areas like River Valley, it could trigger a reflexive cycle where profitability data attracts demand, which pushes up prices, leading to more profits and more demand.

For investors, this may be the window to move early, before sentiment shifts and prices catch up. With the right project in the right location, the first-mover advantage could be meaningful.

Early signs of healthy profitability in CCR condo that recently TOP

How to select profitable CCR condo investment ?

#1 – Look Beyond CBD and Orchard — Focus on Liveable CCR Districts

The first port of core is to look into CCR districts that have characteristics that are conducive for homestay.

It’s overly simplistic to view the CCR as just CBD and Orchard. Districts like Holland Village, Bukit Timah, Novena, and River Valley are often overlooked.

These areas show high profitability rates (84%–100%) and annualised capital gains of 2.7%–3.0%.

Bright spots geared towards affluent home stay buyers in the CCR 

#2  – Prioritise CCR Condos with Manageable Purchase Quantum

When selecting a CCR property, total purchase quantum is a more critical metric than PSF. Buyers today have clear affordability thresholds, and units priced above $3–4M face a significantly smaller resale audience.

Newer CCR launches with efficient, compact layouts often stay within these brackets, making them more attractive for future exit.

In contrast, older condos like Trillium and Cosmopolitan offer large 3-bedders (>1,800 sqft) that push quantum beyond $4M — limiting demand despite lower PSFs.

For investors, targeting CCR units with lower quantum and functional layouts increases exit flexibility and improves long-term profitability.

#3 – Select Units with Efficient Layouts

Efficient layouts are a key selection criterion when buying in the CCR. Layouts that eliminate bay windows, oversized balconies, and long corridors help reduce overall size and keep purchase quantum within a manageable range.

Martin Modern and Irwell Hill Residences are good benchmarks. Both offer 2- and 3-bedders with enclosed kitchens, storerooms, and functional layouts, all while keeping the unit size tight. These projects show that efficient design supports stronger buyer demand and smoother resale.

#4 – Assess Liveability at the Micro-Location Level

Not all CCR locations are equally suited for home stay. When selecting a property, investors should evaluate liveability at the micro-location level, taking into account factors such as proximity to reputable schools, daily amenities, MRT access, and overall neighbourhood character. 

Districts like River Valley, Newton, and Novena contain a mix of zones with varying appeal. For example, within River Valley, the Valley Park micro district is seen as more accessible and value-driven, the Robertson Quay area offers a premium dining and lifestyle environment, while the Martin Place enclave, anchored by Martin Modern, stands out for its family-friendly atmosphere. Recognising these differences is critical in identifying CCR properties with stronger homestay buyer demand.

#5 – 99 Year Lease Condo with Stronger Attributes can Outperform Freehold 

In the current CCR market, freehold status is no longer the primary driver of investment performance. Buyers are increasingly focused on entry quantum, layout efficiency, and location.

Well-designed 99-year projects like Irwell Hill Residences have seen stronger resale interest than nearby older freehold condos, largely because they offer modern layouts and more attainable price points. Similarly in the same River Valley district, several leasehold developments have outperformed their freehold peers highlighting that tenure alone doesn’t determine resale demand and profitability.

#6 – Avoid Boutique Developments with Limited Scale

Small-scale CCR condos often underperform due to low visibility on property portals, limited resale volume, and weaker buyer interest. They typically lack full facilities making them less competitive against larger projects.

Developments like Luma, UP@Robertson Quay, and Zenith have struggled in resale due to its small land size and limited amenities. When compared to full-facility projects like Martin Modern or RiverGate, boutique condos often fall short when it comes to resale demand.

As a side note, we have written a dedicated in depth research article on how to identify profitable CCR Condo development, link inline.

Conclusion

While CCR condos have long carried a reputation for underperformance, a closer look reveals that not all Core Central Region properties are created equal. 

The newest wave of CCR launches, particularly in livable enclaves like River Valley offers a compelling blend of efficient layouts, more accessible quantum, and centrality that rivals many RCR alternatives. 

With the historical price premium between CCR and RCR narrowing, the narrative could be shifting. 

Upcoming waves of new launches in CCR

• Rivergreen
• Promenade Peak

Existing CCR new launches with balance unit

• One Marina Garden
• Aurea