What Makes Certain Districts More Resilient During Market Downturns?

Not all areas are equally affected during a property downturn. Discover why some districts hold their value better and what factors make them safer bets for investors and homeowners alike.

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Jul 4, 2025 - 09:56

Jul 5, 2025 - 10:23

What Makes Certain Districts More Resilient During Market Downturns?

The property market, like any other, moves in cycles. Prices rise in boom periods and correct during downturns. Yet not all districts are affected equally. Some areas weather market turbulence better than others, maintaining stable prices and demand even when sentiment turns cautious.

So, what gives certain districts this resilience? Let’s break down the key factors that help some locations stand strong during property market slowdowns.

1. Established Demand From Both Buyers and Renters

Districts with a strong track record of demand tend to hold up better in downturns. This is often because of their established reputation, amenities, and proximity to employment hubs.

For example, in Singapore, districts near the Central Business District (CBD), like District 9 (Orchard, River Valley) and District 10 (Tanglin, Holland), consistently attract both buyers and renters due to their central location and lifestyle appeal. Even when the broader market softens, these areas see less drastic price drops because of their enduring desirability.

2. Proximity to Key Economic Drivers

Areas near major economic nodes—such as business parks, tech hubs, or industrial clusters—benefit from a steady flow of professionals looking for housing nearby.

For instance, districts close to One-North or Changi Business Park see consistent rental demand from expatriates and local workers. This demand creates a buffer for landlords, helping maintain rental yields and, in turn, property values.

3. Limited Land Supply and Scarcity of New Developments

Scarcity often drives resilience. In mature estates where land for new projects is limited, existing properties enjoy a natural advantage. Buyers and tenants have fewer alternatives, which helps support prices.

This is evident in land-scarce central districts and waterfront areas. Projects with unblocked views, heritage charm, or unique features tend to retain their appeal even when buyers elsewhere become cautious.

4. Good Transport Connectivity and Infrastructure

Districts that are well-served by MRT lines, highways, and public transport often show stronger price stability. Easy access to multiple transport options keeps these areas convenient and connected, which is a key priority for both residents and tenants.

Upcoming infrastructure projects can also bolster resilience. Areas like Paya Lebar and Woodlands saw renewed interest after the announcement of transport upgrades and regional centres, helping soften the impact of broader market dips.

5. Appeal to a Broader Buyer Pool

Districts that appeal to a diverse group—families, young professionals, investors, and expatriates—are better positioned during downturns. This wider buyer pool ensures that demand doesn’t dry up completely even when certain segments (like investors) pull back.

Family-friendly suburban areas with good schools, parks, and community facilities—such as District 15 (East Coast) and District 19 (Serangoon, Hougang)—often benefit from this dynamic.

Final Thoughts

While no district is completely immune to market cycles, certain locations are far better equipped to weather downturns. Factors like strong demand, proximity to economic hubs, excellent connectivity, and limited supply give them an edge.

For buyers and investors, focusing on these resilient districts can provide a measure of protection in uncertain times. After all, in property, location isn’t just about convenience—it’s also about safeguarding your investment through the ups and downs of the market.