Prime location condo prices show immunity to Covid-19, here’s why.

5 min read

Despite restrictions on in-person property viewing for most of the second quarter, both private home prices posted price gains for Q2 2020, according to data published by the Urban Redevelopment Authority (URA) on 24 July.

Prices of private residential properties increased overall by 0.3% in Q2 2020, bucking a 0.9% decline in Q1. An exception to the price increase are properties in the Rest of Central Region (RCR), which posted a price decrease of 1.7%. “The price recovery in Q2 2020 was uneven,” noted Tricia Song, Head of Research for Singapore at Colliers International.

But it certainly was a very encouraging quarter for prime location properties in the Core Central Region (CCR).

Quarter-on-quarter, prices of non-landed property in the CCR increased 2.7% in Q2 2020, after registering a 2.5% fall in Q1.

This is surprising, given that most analysts had expected a continued decline for the CCR properties, given that this is the highest-end segment of private homes in Singapore that’s highly reliant on foreign buyer and renter demand.

But any worries about a drastic plunge in the value of high-end properties have so far been unfounded.


Prime location condo prices show immunity to a drop in transaction volume

More significantly, the robust performance of private home prices in the CCR in Q2 came despite a significant drop in transaction volume during that quarter. The percentage decrease in volume for the CCR is highest among the different segments:

Units Sold Core Central Region (CCR) Rest of Central Region (RCR) Outside Central Region (OCR)
Type New Sale Resale New Sale Resale New Sale Resale
Q1 2020 560 513 765 519 778 1,048
Q2 2020 210 211 658 229 811 493
% change -63% -59% -14% -56% 4% -53%


Despite the decrease in transaction volume, the buoyant home prices in the CCR appear to hint at the strong holding power of homeowners there. The Singapore government has also helped avert fire sales from dictating a fall in property prices, by granting homeowners with outstanding mortgages the option to defer their home loan repayments until the end of the year⁠—a move that helps to keep prices up.

We could see a ‘self-confirmation bias’ effect in the coming months: The stability of home prices in the higher-end property segment of Singapore reinforces the perception of these prime location properties as safe haven assets in times of crisis and economic uncertainty, like right now.

In other words, the Q2 increase in CCR home prices could prompt even more buyers to enter and further drive upward pressure in prices for the rest of 2020.

This is especially true for foreign buyers, whose numbers haven’t reduced as drastically as local buyers in Q2 2020, as the table below shows:

Units Sold Singaporeans PRs and Foreigners
Q1 2020 675 173
Q2 2020 295 112
% change -56% -35%


In Q3, we foresee that overall property transaction volumes will continue to rebound. There are a handful of CCR condos slated to launch in 2020, and keen competition may keep prices from increasing further:

Project Name Location District Region Type of Sale Tenure Developer
Midtown Modern Tan Quee Lan Street 7 CCR GLS 99-Year Guocoland
The M Middle Road 7 CCR GLS 99-year Wing Tai
Cairnhill 16 16 Cairnhill Rise 9 CCR En Bloc (Former Cairnhill Heights) Freehold Tiong Seng Holdings and Ocean Sky International
Jewel @ Killiney Orchard 110 Killiney Road 9 CCR En Bloc (Former Tai Wah Mansion) Freehold Lucrum Capital
Klimt Cairnhill 69 Cairnhill Road 9 CCR En Bloc (Former Cairnhill Mansions) Freehold Low Keng Huat
Kopar at Newton Kampong Java Road 9 CCR GLS 99-year Chip Eng Seng
The Atelier 2 Makeway Ave 9 CCR En Bloc (Former Makeway View) Freehold Bukit Sembawang Estates
The Avenir 8 River Valley Close 9 CCR En Bloc (Former Pacific Mansion) Freehold Guocoland & Hong Leong Realty
15 Holland Hill 15 Holland Hill 10 CCR En Bloc (Former Olina Lodge) Freehold Peak Opal (Kheng Leong Group)
19 Nassim 19 Nassim Hill 10 CCR En Bloc (Former Nassim Woods 99-year Keppel Land
Dalvey Haus 105A Dalvey Road 10 CCR En Bloc (Former Villa D’Este) Freehold KOP Properties
Former 14/14A Nassim Road bungalows 14/14A Nassim Road 10 CCR En Bloc Freehold Shun Tak Holdings
Former City Towers condo 325 Bukit Timah Road 10 CCR En Bloc (Former City Towers) Freehold Japura Development (Cheung Kong)
Former Park House 21 Orchard Boulevard 10 CCR En Bloc (Former Park House) Freehold Shun Tak Cuscaden Residential
Hyll on Holland 95 Holland Road 10 CCR En Bloc (Former Hollandia and The Estoril) Freehold Far East Consortium Properties and Koh Brothers
Leedon Green 1-11 Farrer Road 10 CCR En Bloc (Former Tulip Garden) Freehold Yanlord Land Group and MCL Land
Van Holland 186 Holland Road 10 CCR En Bloc (Former Toho Mansion) Freehold Koh Brothers
Peak Residence 333 Thomson Road 11 CCR En Bloc (Former Peak Court) Freehold Tuan Sing Holdings and Rich Capital Holdings


Of the above, condos such as Van Holland, The Avenir, Leedon Green and Kopar @ Newton have already been launched. You can view the full list of new launch condos for the year here, or browse our listings to find out what’s available in Singapore’s prime districts right now.


Do you feel that prices are looking up for prime location condos? Let us know your comments below!

If you liked this article, recommends How will the Johor rail link shape Woodlands property prices? and Why the Current Housing Glut May Not Lower Property Prices

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Reader Interactions


    • caseyaff

      Hey! It will drop by 10 to 20%. Bookmark my comment. Let’s bet! I guarantee u property will crop about 10% by next year.

    • Terrence

      Nothing unusual here. Same phenomenon in the UK and US. Two main reasons, the economic pain has been deferred, and most of the hardship has fallen on the poorest who aren’t in the market for prime condos. White collar workers are all safely ensconced at home, job secure, money coming in.

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