CCR Welcomes a Fresh Wave of Buyers: Are Local Buyers Replacing Foreign Investors?

Fewer Foreign Buyers, Yet CCR Sales Are Thriving? Singapore’s Prime Residential Market Is Undergoing a Profound Shift

Historically, Singapore's Core Central Region (CCR) has been synonymous with luxury residences, foreign buyers, and high-net-worth global investors.

Over the past two years, however, the CCR market has quietly evolved.

Following steep hikes in the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers, international capital has largely retreated from the market. Yet, rather than experiencing a prolonged downturn, new home sales in the CCR have staged an impressive and unexpected rebound.

The catalyst driving this recovery is no longer foreign capital, but an expanding wave of Singaporean local buyers.

Foreign Buyers Retreat as Locals Become the Core Market Driver

Since the government raised the residential ABSD for foreign purchasers to 60% in April 2023, the dynamics of the CCR market have shifted decisively.

Data shows that between 2015 and 2022, foreign buyers accounted for an average of approximately 17% of new CCR home transactions.

By 2024, that figure had shrunk to 10.7%.

As of 2026, foreign transactions make up merely 4.7%.

Crucially, the withdrawal of foreign buyers has not left the CCR market in a slump. On the contrary, new private home sales in the CCR surged from 378 units in 2024 to 1,916 units in 2025—a fivefold increase.

This underscores a structural shift: domestic buyers are decisively stepping in to fill the demand vacuum left by foreign capital.

The CCR–RCR Price Gap Narrows Significantly

A critical driver steering local buyers back toward the CCR is pricing. Historically, a substantial price gap separated the CCR from the Rest of Central Region (RCR).

In 2025, however, the median price gap between the CCR and RCR compressed to around 10.1%—almost half the 21.5% margin recorded in 2024.

With this narrowed price disparity, an increasing number of homebuyers originally eyeing the RCR are reconsidering the prime central region.

For many well-capitalised households, a modest top-up in budget now unlocks prime, prestigious addresses. Consequently, the CCR is pivoting from an exclusive luxury enclave into an attainable upgrading choice for affluent local families.

Over 80% of Local Buyers Have Budgets Clustered Around S$3 Million

Statistics reveal that the share of Singaporean buyers purchasing new CCR homes rose to 82.4% in 2025.

This is a notable increase from the 67.7% average recorded between 2015 and 2022. As of 2026, the local buyer share continues to hover comfortably around 78%.

Even more compellingly, roughly 80% of these Singaporean purchasers are operating within a budget of around S$3 million.

Of this demographic:

16.1% originate from HDB households;

55.8% already own private properties.

In other words, the prevailing force in the CCR is not the first-time homebuyer, but established property owners.

Rather than pursuing conventional "upgrading," these buyers are increasingly looking to "right-size"—adjusting their residential portfolios around evolving family sizes, lifestyle preferences, and accessibility.

Turf City to Serve as a Key Litmus Test for the CCR’s Next Era

Against this backdrop, Turf City in Bukit Timah stands out as one of the most keenly watched growth precincts in the coming years.

Spanning an expansive 176 hectares, the master-planned estate is slated to introduce between 15,000 and 20,000 homes across both private residential and public housing developments.

Envisioned as a car-lite precinct, it will be anchored by the future Cross Island Line Turf City MRT station (expected to open in 2032) while linking seamlessly to the existing Sixth Avenue MRT station.

The government has already released the first two residential parcels under the Government Land Sales (GLS) programme.

The maiden project, Dunearn House, opened its showflat for preview in July, with the official launch slated for 25 July.

As the pioneer private residential launch in Turf City, its reception will offer a critical gauge of future market sentiment in the CCR.

Why the "First-Mover" Project Often Sets the Benchmark

History has shown repeatedly across Singapore's real estate sector that the debut development in a fresh precinct frequently establishes the benchmark price for subsequent projects.

A prime example is Lentor. Launched in 2022, Lentor Modern recorded an average launch price of around S$2,100 psf.

Subsequent launches across the Lentor precinct effectively benchmarked against that baseline.

Today, Lentor Modern owners are sitting on average paper gains exceeding S$300,000, with several profitable resale transactions crossing the S$500,000 mark.

Consequently, many market observers anticipate that Dunearn House could command a comparable first-mover advantage.

Notably, the land cost for Dunearn House stood at approximately S$1,410 psf ppr, whereas the adjacent, newly awarded residential plot transacted at S$1,625 psf ppr.

This land price escalation of over 15% speaks volumes about developers' sustained conviction in the long-term prospects of Turf City.

Bukit Timah May Usher in a Fresh Wave of Replacement Demand

Beyond first-time private property buyers and investors, Turf City is poised to capitalise on another enduring demand pool: local upgraders and right-sizing retirees.

As Singapore transitions into a super-aged society, an increasing number of senior homeowners are weighing the transition from expansive landed properties or ageing large-format condominiums into modern, low-maintenance private residences.

As of Q1 2026, the Bukit Timah Planning Area encompasses:

Over 10,000 landed homes; and

More than 22,000 non-landed private residential units.

This translates to a massive pool of organic replacement demand already residing in the immediate vicinity.

For these longstanding Bukit Timah residents, Dunearn House offers the prospect of staying within their familiar neighbourhood ecosystem while enjoying more modern, space-efficient layouts—underpinning its compelling value proposition.

Market Outlook

The CCR market is entering an entirely new paradigm. Where foreign capital once drove transaction volume, market momentum is now anchored by local upgraders, owner-occupiers, and long-term capital allocators.

Concurrently, the narrowing price gap between the CCR and RCR is prompting buyers to reassess the long-term value of prime central districts.

Over the next few years, the development of Turf City will not only reshape the residential landscape of Bukit Timah, but also potentially redefine the trajectory of the CCR.

As the precinct's pioneer launch, Dunearn House’s sales performance will be a pivotal bellwether for this ongoing structural transformation of Singapore's luxury property market.