Private homes on the city fringe have recently seen a remarkable surge in price growth, outpacing those in prime locations for a second consecutive quarter.

Based on caveat data from the Urban Redevelopment Authority (URA), the median price of condos (excluding executive condos or ECs) in the city fringe or Rest of Central Region (RCR) soared to a record high of $2,466 psf in 4Q2024 (Chart 1).

It was 9.7% higher than the median price of private condos in the prime Core Central Region (CCR), which was $2,248 psf in 4Q2024. The following quarter, in 1Q2025, prices in the RCR remained higher at $2,413 psf, compared to $2,368 psf in the CCR.

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The price trends indicate that buyers are increasingly willing to pay a premium for city fringe homes. Will this trend continue? Will prices in the city fringe continue to surpass the prime locations?

City fringe homes enjoy higher capital appreciation

Over the past three years, private homes in the city fringe have shown significantly higher price growth than in prime areas.

For instance, the median price of condos in the RCR surged by 32.4% from $1,822 psf in 1Q2022 to $2,413 psf in 1Q2025 (Chart 2). In contrast, the median price of condos in the CCR declined by 1.6% from $2,406 psf to $2,368 psf during the same period.

A faster price appreciation can be observed across all sales types for condos in RCR. The median price of new condos in the RCR jumped by 35.8% from 1Q2022 to 1Q2025, while the median price in the CCR declined by 1.4% over the same period.

Similarly, for private resale condos, median prices in the city fringe outperformed those in the prime locations, with prices in RCR rising by 23.4% from 1Q2022 to 1Q2025, compared to a more modest 11.4% gain in CCR.

Price surge in RCR driven by spike in high-value transactions

The stronger price performance for city fringe condos can be attributed to a significant rise in high-value transactions. In 1Q2025, approximately half, or 50.4%, of condo transactions were priced at $2 million or more in the city fringe (Chart 3). This is a significant increase compared to the 32.9% registered three years ago and a dramatic leap from a mere 9.8% a decade ago.

Read also: Singapore private residential prices rose 0.8% in 1Q2025, driven by RCR growth and new launches

In absolute terms, the number of condos in the RCR sold for at least $2 million reached a record high of 1,572 units in 4Q2024 (Chart 4). During this period, 460 units were sold for at least $3 million but less than $5 million, while 40 units were sold for at least $5 million but less than $10 million. Three condos in RCR were sold for over $10 million.

Supply of new homes

Besides the spike in high-value transactions, the price surge in RCR may also be attributed to a recent increase in new home launches. It has led to more new condos being transacted, and new homes are usually sold at higher prices than resale homes.

According to URA Realis caveat data, new sale condo transactions in RCR accounted for 61.2% of total transactions in 4Q2024 and 47.4% in 1Q2025. As a result, more condos were sold at high price tags over the past six months.

For instance, between 1Q2024 and 1Q2025, almost 1,500 new condos in Emerald of Katong, The Orie, Nava Grove, The Continuum, and Tembusu Grand were sold for at least $2 million.

Their high prices may be attributed to their positive product offerings, comprehensive amenities and popular locations in Districts 15 (Katong, Joo Chiat, and Amber Road), 12 (Balestier, Serangoon, Toa Payoh) and 21 (Upper Bukit Timah, Clementi Park and Ulu Pandan).

Among these transactions, Emerald of Katong and The Orie had the highest number of transactions for at least $3 million. For those transactions for at least $5 million, the top projects were Meyer Blue in District 15, The Reserve Residences in District 21 and CanningHill Piers in District 6 (High Street, Beach Road).

Read also: What’s fuelling the boom in new condo demand

Price growth hinges on upcoming project launches  

Whether RCR will continue outperforming CCR depends on the number of new launches and their launch prices.

This year, more city fringe projects are slated for sale. The 937-unit One Marina Gardens was recently launched, with 38% of its units sold at $2,953 psf during its first weekend. At that price, it has already surpassed the average price of new condos in the city fringe, which was $2,669 psf in 4Q2024 and $2,723 psf in 1Q2025.

There will be other projects, such as those on the Government Land Sales (GLS) sites at Zion Road Parcels A and B, as well as Margaret Drive. The expected launch prices for these projects may exceed $2,800 psf and potentially breach new benchmark prices.

However, the 355-unit The Sen at De Souza Avenue, developed by Sustained Land, may be launched at a slightly lower price than the median price, as the location is situated further from the city centre. For this site, the land was also awarded at $841 psf per plot ratio (ppr) in August 2024 through the GLS programme.

Shift in buyers’ priorities may be here to stay

Moreover, the higher prices obtained by RCR projects signal an evolving trend that reflects a broader market transformation, such as how investors assess the value of residential properties today.

It is unsurprising that city fringe homes are gaining greater prominence in the market. The changing work landscape has transformed purchasers’ buying priorities, particularly with increased flexible work and work-from-home arrangements.

This is further supported by decentralisation efforts, where many working professionals are now operating out of the city centre and regional hubs such as Jurong Lake District and Punggol Digital District. Therefore, these neighbourhoods' charm, vibrant amenities, schools and proximity to workplaces have overshadowed buyers’ need to stay near the central business district.

This is especially true for buyers who prioritise the aesthetic and product appeal of certain developments and favour well-furnished homes and well-planned community spaces over traditional benefits like proximity to the city centre.

This emerging trend means that any homes outside of the city centre have the potential to fetch premium prices if they have the right products and locational benefits.

Luxury sales performance to play a part

Another key factor will hinge on how the luxury market performs. Over the past year, the price performance for new private homes in the Core Central Region (CCR) has been lacklustre, with median prices declining for three consecutive quarters, from $3,294 psf in 2Q2024 to $2,736 psf in 1Q2025.

However, CCR condo prices increased slightly from April 1 to 8, reaching $3,318 psf. Resale condo prices in CCR had also improved, with median prices rising from $2,043 psf in 4Q2024 to $2,185 psf in 1Q2025.

The prime sector’s performance will depend on the sales take-up of a few prominent luxury projects. These include Aurea and yet-to-be-launched projects like W Residences Singapore — Marina View and the GLS site at Holland Drive.

Moving forward

The ongoing tariff headwinds may pose fresh challenges for Singapore. As an export- and trade-reliant country, Singapore may feel the brunt of the tariff regime, as the US is one of our major trading partners.

Heightened trade tensions may influence Singapore’s Gross Domestic Product (GDP) growth trajectory, prompting potential homebuyers to take a more cautious approach as they consider the risks associated with an unpredictable economic landscape.

Some buyers may be reluctant to stretch their budgets, which may slow the pace of price growth. Residential homes in the city fringe could be more affected than other segments, as many buyers have limited budgets. Some could be mid-level executives or young investors who are more vulnerable to external shocks.

On the other hand, the growing macroeconomic uncertainties might propel high-end investors to seek safe-haven assets, such as luxury properties. Some may still choose to invest in Singapore despite the high Additional Buyer’s Stamp Duty.

Should the above scenarios unfold, prices in the city fringe may rise more moderately, while luxury home prices may increase faster.

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