Over half of 2026 condo launches expected in suburban Singapore as buyer preferences shift
Developers are increasingly focusing on the Outside Central Region, as buyers prioritise connectivity, amenities and future growth over more central locations.
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SINGAPORE: Singapore’s suburban property market is set to take the spotlight this year, with more than half of new condominium launches expected in the Outside Central Region.
Market estimates put the jump at around 20 percentage points from a year ago, reflecting a growing shift among both developers and buyers towards suburban areas beyond the traditional core.
Analysts say this is driven by changing buyer preferences, with greater emphasis on connectivity, amenities and future growth, as well as developers pivoting towards areas with stronger local demand.
BUYERS NO LONGER “FIXATED” ON CENTRAL ADDRESSES
Singapore’s private housing market is typically divided into three regions:
- The Core Central Region, which covers prime districts such as Orchard and Bukit Timah
- The Rest of Central Region, or city-fringe areas such as Tiong Bahru and Queenstown
- The Outside Central Region, which includes suburban towns such as Tengah and Loyang
Tengah’s first private condominium – Tengah Garden Residences – saw strong sales at launch last weekend, while the en bloc sale of Loyang Valley in Pasir Ris earlier this month also drew attention to suburban locations.
Analysts say the shift reflects how buyers define location, with convenience no longer tied only to central areas.
“In the past, we can see buyers being fixated on a particular district or even on a particular address that they see as being different from other areas in Singapore,” said Mr Lee Sze Teck, senior director of data analytics at Huttons Asia.
“But in recent years, we have seen buyers being more concerned about the location attributes … the transportation network, the amenities like shopping malls or even primary schools.”
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This reflects a broader shift in Singapore’s housing landscape, where infrastructure improvements and town planning have made suburban living more attractive and viable for a wider range of buyers.
This is supported by Singapore’s expanding rail network and decentralised employment hubs, such as the Jurong Lake District and Jurong Innovation District, which are expected to bring jobs closer to residential areas, Mr Lee added.
Property purchases are also becoming more lifestyle-driven, with buyers focused on how easily they can move around Singapore, said Mr Josh Ng, adjunct lecturer at the Lee Kong Chian School of Business at Singapore Management University.
“The old tagline 'location, location, location' is still very true in real estate, but that story has changed a little bit in the last five to 10 years,” he said.
“Now, it's driven by speed and location … so even if it's not integrated development, as long as you're very near (an) MRT (station), people love it. It's not for investment, it's just for their living.”
FUTURE GROWTH DRIVING INTEREST IN “ULU” AREAS
Areas once considered more remote or “ulu” are gaining traction as buyers take into account future development plans and improved connectivity, analysts say.
Towns like Tengah, Bayshore and Tampines North are set to see more housing and infrastructure take shape in the coming years.
Tengah, for instance, has been designed as a car-lite town with integrated transport links, including the upcoming Jurong Region Line.
The area has already seen strong demand for Build-To-Order (BTO) flats and executive condominiums, even before full completion, Mr Lee said.
Similarly, Loyang’s appeal is tied to future connectivity, he noted, adding that the area’s low-density environment is another draw.
DEVELOPERS PIVOT AFTER COOLING MEASURES
Developers are also adjusting their strategies, particularly after the Additional Buyer’s Stamp Duty (ABSD) on foreigners was doubled to 60 per cent in 2023.
Analysts noted that this dampened demand in prime areas.
On top of that, existing rules that require developers to sell all units within five years from the date of land acquisition – or face tax penalties – have become harder to meet, they said.
“If I'm a developer, of course I would like to diversify one side Outside Central Region, one side Core Central Region … but now it's a matter of speed … fast turnover to turn around the site and make a profit,” said Mr Ng.
With fewer foreign buyers in the Core Central Region, developers have had to “pivot” to the Outside Central Region, where “pent-up” demand from HDB upgraders remains strong, he said.
These upgraders can tap proceeds from the sale of their flats to fund private home purchases, he added.
SMALLER PRICE GAP BETWEEN REGIONS?
Analysts say the price gap between central and suburban properties is already narrowing and could continue to do so over time.
Recent launches reflect this trend.
Tengah Garden Residences, for example, sold at an average price of around S$2,100 (US$1,650) psf, while some projects in Lentor are in the S$2,400 to S$2,600 range.
This brings prices closer to prime developments in areas like Marina Bay, going at about S$2,900 psf, Mr Ng noted.
“We do see some blurring in terms of the price point that's been achieved in some well-located projects, whether it's in the Outside Central Region or even the Rest of Central Region,” said Mr Lee.
However, he added that differences between the suburbs and the Core Central Region are likely to persist in the near term, with any convergence happening gradually over the longer term.
Mr Ng estimated that prices across regions could “kind of normalise” over the next decade, though this will depend on market conditions and policy changes.
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