Local buyers are key to recovery of Singapore’s prime district condo market

SINGAPORE – When Malaysia’s IOI Properties began pre-sales for its 683-unit, 99-year leasehold condo W Residences Marina View in Singapore’s Central Business District on July 12, only two units were reportedly booked.

It was a sign of how foreign buyers, deterred by hefty taxes on their property purchases, were still giving the luxury housing segment a miss.

But just a week later, two new prime district condos, UpperHouse at Orchard Boulevard and The Robertson Opus in Unity Street – the only 999-year residential project launch in District 9 in 2025 – collectively sold 305 units over their July 19 launch weekend.

This is above the 253 new units sold in the core central region in the third quarter of 2023 after foreign buyers were slapped with a 60 per cent additional buyer’s stamp duty (ABSD) in April 2023.

The strong weekend showing also comes after two years of tepid sales of new prime district condos, which plummeted to a record low of 46 units sold in the second quarter of 2025, according to PropNex.

The dry spell afflicting prime district condos appears to be lifting, with UpperHouse and The Robertson Opus poised to boost prime district transactions to a two-year quarterly high in the third quarter of 2025.

These units have become more appealing as the price gap between prime district condos and those in the city fringe has narrowed substantially. As a result, they offer better value to local buyers, who were primarily behind the weekend’s strong showing at the two launches.

The gap between the median price per square foot (psf) of new homes in the prime district and city fringe areas has narrowed from a high of 56.5 per cent in 2018 to a mere 1.9 per cent in the first half of 2025, Huttons Asia chief executive Mark Yip noted.

Furthermore, the three-month compounded Singapore Overnight Rate Average, or Sora rates, have dipped below 2 per cent in July 2025, lowering borrowing costs, he added.

As a result, more than 93 per cent of new non-landed private homes in the prime district in the first half of the year were bought by Singapore Permanent Residents and Singaporeans.

PropNex chief executive Kelvin Fong noted that the average $3,350 psf price transacted at UpperHouse is among the most competitive prices for a luxury condo launch in the prime Orchard Road area.

In comparison, the 54-unit freehold Park Nova luxury condo in Tomlinson Road recorded a median price of $4,979 psf when it first launched in May 2021.

On a quantum basis, transacted prices of UpperHouse’s one-bedders began at nearly $1.4 million, while two-bedders ranged from $2.1 million to $2.7 million.

At The Robertson Opus, some 41 per cent of its 348 units were sold the past weekend. The units fetched an average price of $3,360 psf.

Transacted prices of its one-bedders (495 sq ft) ranged from $1.59 million to $1.67 million, while two-bedders (689 to 721 sq ft) sold for between $2.17 million and $2.63 million, according to PropNex.

In comparison, W Residences – which will sit atop the 360-room five-star W Singapore hotel – said it is offering selected units at special preview prices starting from just above $3,200 psf.

That means prices of the cheapest one-bedroom units (538 sq ft to 570 sq ft) start at above $1.8 million.

When asked how it plans to boost demand, IOI Properties said on July 22 that “interest has been encouraging, with units already reserved or under negotiation”. A spokesman added that further release plans will be evaluated when the preview ends.

With several more prime district and centrally located projects expected to be launched in the coming months, developers may become more strategic in their marketing plans and pricing, ERA key executive officer Eugene Lim said.

This can be seen in the starting prices for River Green in the prime district of River Valley, and the nearby city fringe condo Promenade Peak in Zion Road.

River Green’s starting price of $2,846 psf and Promenade Peak’s starting price of $2,680 psf appear to be a sweet spot for buyers of centrally located new launches. Both projects, which will launch on Aug 2, saw robust demand during July previews.

Two more centrally located condos could begin pre-sales in October: prime district project Skye at Holland, and Zyon Grand at Zion Road, a city fringe project.

Whether the rebound in new prime district condo sales can be sustained will depend on the take-up rates of the upcoming prime district and centrally located new launches.

Mr Nicholas Mak, chief research officer at Mogul.sg, said this also hinges on whether prices of the new prime district launches are within “an acceptable price range” – which appears to be the lower end of the $3,000 psf range for 99 year-leasehold launches, and between $3,250 and $3,500 psf for freehold developments.

With the hefty ABSD still in place for residential property purchases by foreign buyers, the only way to keep local buyers interested in prime district properties is to ensure that prices are accessible to them, especially in the face of growing economic uncertainty.