Prime District Prices, Slower Growth: Why D1–D2 Condos Lagged the Island-Wide Market
Over the past decade (2015–2025), Districts 1–2 (which cover Singapore’s central areas, such as Marina Bay, Tanjong Pagar and Raffles Place) have seen muted price growth compared to the rest of the island. From the PropNex Protrend charts, the average selling price per sq ft (PSF) for new 1‑BR units in D1–2 went from about \$2,419 in 2015 to roughly \$2,935 in 2025 (≈+21%), whereas 1‑BR resale prices rose only from \$1,855 to \$2,035 (+10%) over the same period. By contrast, island-wide 1‑BR prices grew much more: new 1‑BR PSF jumped from ≈\$1,420 to \$2,796 (+97%), and resale 1‑BR from \$1,573 to \$1,810 (+15%).
1 Bedroom New Sale & Resale Price Trend
Similar patterns hold for larger units: 2‑BR and 3‑BR condos in D1–2 saw roughly 20–30% price increases in the decade, versus 40–60% island-wide. In fact, the most dramatic gains occurred outside the core: for example, overall private home prices rose 8.4% in 2022 alone, largely driven by new launches in suburban areas (Prices in the rest of central and outside central regions were up ~9–10% for 2022). By comparison, price growth in the Core Central Region (which includes Districts 1–2) was only about +4–5% in 2022, reflecting the charts’ picture that prime districts appreciated more slowly. In short, Districts 1–2 command much higher absolute prices but have seen flatter appreciation than the island average, as younger suburbs and mass-market projects have caught up in the last few years.
2 Bedroom New Sale & Resale Price Trend
3 Bedroom New Sale & Resale Price Trend
4 Bedroom New Sale & Resale Price Trend
Several factors explain these trends: D1–2 units start at very high bases (often above \$2,000–3,000 PSF), so even strong demand only yields moderate percentage gains. By contrast, projects in outer districts had more room to grow. Also, Districts 1–2 faced lumpy supply: after a flurry of new launches (e.g., Marina Bay condos) around 2016–2018, fewer large projects came onstream in the mid-2010s. When global demand resurged in 2021–2022, buyers chased new projects island-wide, boosting non-core prices more steeply. Interest‑rate hikes and cooling measures since 2022 have also dampened hot markets; as URA noted, overall private home prices grew by +8.4% in 2022 (a moderation from +10.6% in 2021). High-end buyers in Districts 1–2 are relatively fewer and more sensitive to macro factors, so price gains here have been more subdued.
Rental Performance, Yield Analysis and Outlook
Rental Price Trend Of 1-4+ Bedroom, District 01, 02 Versus All Districts
| Unit Type | D1–D2 Average Resale PSF (2025) | D1–D2 Average Monthly Rent PSF (2025) | Estimated Gross Rental Yield | Island-Wide Average Resale PSF (2025) | Island-Wide Average Monthly Rent PSF (2025) | Estimated Gross Rental Yield |
|---|---|---|---|---|---|---|
| 1 Bedroom | ~$2,035 | ~$7.25 | ~4.2% | ~$1,810 | ~$6.46 | ~4.2% |
| ~$2,137 | ~$6.60 | ~3.4% | ~$1,790 | ~$5.27 | ~3.5% | |
| 3 Bedroom | ~$2,021 | ~$6.03 | ~3.58% | ~$1,662 | ~$4.69 | ~3.4% |
| 4 Bedroom | ~$2,237 | ~$6.66 | ~3.57% | ~$1,750 | ~$4.44 | ~3.0% |
Based on the 2025 rental yield table, Districts 01 and 02 continue to show strong rental resilience, especially for larger unit types. While capital appreciation in these prime central districts has been more muted compared to the island-wide market, rental performance remains competitive and, in some segments, stronger than the broader Singapore market.
For 1-bedroom units, Districts 01 and 02 achieved an estimated gross rental yield of around 4.2%, which is broadly in line with the island-wide average of 4.2%. This suggests that although 1-bedroom resale prices in D1–D2 are higher, the premium is supported by equally strong rental demand. The central location, proximity to CBD offices, lifestyle amenities, MRT connectivity and tenant demand from expatriates and professionals continue to support rents.
For 2-bedroom units, D1–D2 recorded an estimated yield of around 3.4%, slightly below the island-wide average of 3.5%. This indicates that 2-bedroom units in the broader market may offer marginally better rental efficiency, likely because resale entry prices outside the core central region are lower while rental demand remains healthy. In D1–D2, 2-bedroom units remain attractive, but investors need to be more selective in their purchase price, layout efficiency, and project positioning.
The clearest outperformance is seen in the 3-bedroom and 4-bedroom segments. D1–D2 3-bedroom units achieved an estimated gross rental yield of around 3.58%, compared with 3.4% island-wide. Similarly, 4-bedroom units in D1–D2 recorded a yield of about 3.57%, outperforming the island-wide benchmark of 3.0%.
This suggests that larger central units are benefiting from stronger rental demand, supported by expatriate families, corporate tenants and high-income professionals who value centrality, convenience and lifestyle access. At the same time, the limited supply of larger-format units in Districts 01 and 02 further supports rental rates, allowing these unit types to command comparatively higher yields.
Overall, the rental yield data shows that while D1–D2 may not have delivered the strongest price appreciation over the past decade, its rental fundamentals remain robust. The district performs particularly well for investors targeting income stability rather than pure capital growth. Smaller units offer market-matching yields, while larger units appear to yield more than the island-wide average.
Performance Interpretation
The key takeaway is that Districts 01 and 02 are high-price, income-resilient markets rather than high-growth markets. Their slower price appreciation reflects already elevated entry prices, a mature prime market and tighter affordability constraints. In contrast, many outside-central districts experienced stronger uplift due to lower starting prices, new infrastructure, decentralisation and stronger mass-market demand.
However, rental performance paints a more positive picture. D1–D2’s central location continues to command premium rents. The stronger yields for 3- and 4-bedroom units suggest that larger homes in prime central areas may be relatively underappreciated from an income perspective, especially when compared with their island-wide counterparts.
Outlook and Recommendations
Going forward, investors should not approach D1–D2 purely as a capital appreciation play. The better strategy is to focus on rental income, tenant quality and long-term asset preservation.
For investors, the most attractive opportunities appear to be:
1-bedroom units for the strongest yield, tenant depth and stable rental demand.
3- and 4-bedroom units for stronger relative yield and potential demand from expatriate families or corporate tenants.
Well-laid-out resale units may be more attractive, as they offer immediate rental potential compared with new launches, which carry higher entry prices and delayed rental returns.
Homeowners in D1–D2 should recognise that their properties remain highly defensible despite slower appreciation. The district’s value lies in scarcity, location, tenant demand and long-term prestige. For owners considering whether to sell or rent out, holding may be attractive if the property generates healthy rental income and is not overleveraged.
In conclusion, D1–D2 may have lagged the island-wide market in price growth, but the latest yield figures show that its rental performance remains competitive, especially for larger units. Investors should be selective, yield-focused and disciplined on entry price, while homeowners can take confidence from the district’s continued rental strength and long-term prime-location appeal.
Disclaimer:
This article is for general informational purposes only and does not constitute financial, investment, legal or property advice. Property prices, rental yields and market conditions may change. Readers should conduct their own due diligence and seek professional advice before making any property decisions.
All charts, transaction data and statistics referenced are sourced from publicly available datasets and third-party platforms, including PropNex Protrend and URA-related market information.
Article contributed by Jerry Wong.
Jerry Wong is a realtor at Propnex Realty, bringing a rich background in interior and lighting design to his work. He loves exploring diverse spaces and observing the transformative power of real estate. Beyond his professional role, Jerry finds his greatest fulfillment in connecting people with the right properties, gaining immense satisfaction from helping clients achieve their dreams.
