Where the Coffee's Good and the Real Estate's Better

Sheena Sugiarto Content Writer
PerspectivesJune 23, 2026
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TL;DR

Cafs may make a neighbourhood more desirable, but they are not the sole or even main reason property prices rise. More often, they appear in areas that were already becoming attractive due to stronger fundamentals such as connectivity, heritage charm, amenities, and growing affluence.

  • Tiong Bahru, Joo Chiat/Katong, Holland Village, Tanjong Pagar, and Siglap have all developed strong caf cultures alongside significant long-term property price growth.
  • The cafs came after the momentum: In many cases, property values were already rising before the caf boom took off, suggesting that cafs were responding to changing demographics rather than creating them.
  • Lifestyle still matters: While cafs may not directly drive prices, they contribute to neighbourhood vibrancy, increase foot traffic, and enhance the lifestyle appeal that many buyers and tenants value.
  • Developers know this: Proximity to trendy cafs, dining options, and lifestyle amenities has become a common selling point for new launches because it helps shape buyer perception of an area.
  • For investors, cafs are a signal, not a strategy: A growing caf scene may indicate neighbourhood transformation, but long-term price growth still depends on fundamentals such as transport connectivity, housing supply, employment nodes, and overall demand.

Bottom line: Good coffee alone won't make property prices rise, but cafs often appear where positive change is already happening. Enjoy the flat white, but make sure the property fundamentals are just as strong as the brunch scene.

It all started with one instagrammable caf, and now we've got dozens of brunch spots with queues that start before 10 a.m.

If you pick your weekend plans based on coffee quality, this article is for you. I've rounded up a few neighbourhoods with some of the best caf scenes. So, we'll look at how much it costs to live near your favourite coffee order, and whether or not these cafs affect nearby property prices.

Tiong Bahru

Source: Forty Hands

As the o.g. of gentrified neighbourhoods, of course we have to start with Tiong Bahru, where resale HDB flats and condo prices average at $934 and $2,326 psf respectively in Q2 2026.

In October 2010, before the district had fully transformed, Aussie-inspired caf Forty Hands (which sadly closed in 2022) opened its doors here. And in many ways, it was the catalyst that sparked the neighbourhood's coffee boom. What followed was a stream of iconic names like Tiong Bahru Bakery, Flock Caf, Drips Bakery, and Plain Vanilla.

Suddenly, what used to be a quiet enclave of conserved flats and elderly residents became the weekend brunch capital of Singapore. But how did property prices respond? Let's see how the resale market performed within this radius.

Source: PropNex Investment Suite

Looking at the broader picture, Tiong Bahru's property price inflection point actually began in 2006, several years before trendy cafs entered the picture. From 2000 to 2006, HDB resale prices in the area rose by 19.4%, while condo resale prices actually declined by 27.86%. But from 2006 to 2026, things shifted dramatically. HDB resale prices surged by 194.38%, and condo resale prices saw an even more impressive increase of 371.89%. Of course, this long-term growth was not driven solely by cafs, but rather a combination of factors. More on that later.

Source: PropNex Investment Suite

Now, focusing on the caf timeline, between Q1 2008 and Q3 2010, HDB and condo resale prices experienced fluctuations (likely affected by the global financial crisis) but ultimately grew by 23.25% and 9.86% respectively. But from Q3 2010 (when more cafs started sprouting) to Q2 2013 (peak before cooling measures take effect), growth accelerated to 26.74% for HDBs and 45.33% for condos.

Joo Chiat and Katong

Resale HDB flats and condos near the colourful peranakan shophouses in Joo Chiat and Katong can cost you around $725 and $2,019 psf respectively in Q2 2026.

Perhaps because in recent years, we saw many new eateries and retail shops with refined visuals pop up along the street. From late 2020 to 2021, as the Covid-19 situation was calming down a bit, caf after caf opened their doors. Kings Cart Coffee Factory, The Brewing Ground, Common Man, PRAIRIE by Craftsmen, just to name a few. It's clear that the area has transformed from kopi and kaya toasts to cold brews and croissants.

But, do they really boost the prices of surrounding properties? Below is the area we're looking at.

Source: PropNex Investment Suite

Between Q1 2015 and Q2 2020, resale prices for both HDB and condos softened by 7.68% and 5.95% respectively, reflecting a mix of earlier market conditions and the initial shock of COVID. But from Q2 2020 to Q2 2026, those numbers jumped dramatically to 43.56% for HDB and 70.24% for condos.

Q2 2020 appears more like a market trough than a post-pandemic recovery point; the rebound after that likely reflected broader forces such as low interest rates, resilient household demand, limited supply, and renewed confidence as restrictions eased.

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Tanjong Pagar

Yet another spot with charming shophouses, resale HDB flats and condos in Tanjong Pagar average around $1,131 and $1,987 psf respectively in Q2 2026.

But for many, it's worth the premium. What was once a fishing village is now home to great eateries and cafs like The Populus, Baristart, Champion Bolo Bun, and Equate Coffee. With its CBD-adjacent location, these spots not only attract tourists and brunch enthusiasts, but also office workers getting their coffee break. And with more people coming in, it's easy to see how the F&B culture adds some appeal to surrounding properties.

So how has the resale market performed in this zone?

Source: PropNex Investment Suite

Over the past decade, HDB flats grew by 36.43%, while condos rose by 39.93%. That said, it's hard to pinpoint exactly when the caf boom started here since there isn't exactly a major catalyst like in Tiong Bahru. So while cafs may have played a role in shaping the area's lifestyle appeal, it's difficult to say definitively whether they had a significant effect on property prices. It's entirely possible that they just went along with broader gentrification and decentralisation trends.

Holland Village

Source: EATBOOK

Popular amongst expats, the average price of resale HDB flats and condos in this pet-friendly neighbourhood in Q2 2026 is $764 and $2,207 psf respectively.

Long before brunch became a weekend ritual, Holland Village was used as a military housing for British soldiers in the 1930s. At the time, plantations and villages were named after prominent individuals, and this area was eventually named after one of its early residents, Hugh Holland, a British colonial architect.

By the late 1980s, the area had become a foodie hotspot, eventually evolving into the Holland Village that we know today, with names like Lola's, Frankie & Fern's, 2am: dessertbar, and Tai Cheong Bakery.

But how have surrounding properties performed in this region?

Source: PropNex Investment Suite

Between 2015 and Q2 2020, resale HDB prices actually declined by 17.45%, suggesting that the neighbourhood's lifestyle appeal alone was not enough to drive sustained price growth. However, as the market recovered, prices rebounded sharply by 45.52% between Q2 2020 and 2026. Resale condos experienced bumpier price fluctuations throughout the decade. Yet despite the volatility, they still recorded an overall gain of 35.4% over the past 10 years.

Siglap

Source: Blake Erik.

If Holland Village caters to the west side crowd, Siglap has become one of easties' favourite caf destinations. In Q2 2026, resale HDB flats and condos in this region average at $566 and $1,639 psf respectively.

Back then, Siglap was already known for its laid-back coastal charm. The area began as a collection of fishing villages and coconut plantations along Singapore's former shoreline. In many ways, the caf culture today feels like a natural extension of that identity rather than a transformation. Siglap has always been a place people visit to slow down. And the cafs gave residents and visitors another reason to linger a little longer.

Stretching along East Coast Road and neighbouring Joo Chiat, Siglap is filled with cafs such as Craftsmen Specialty Coffee, Five Oars Coffee Roasters, and The Royals Cafe.

So let's see if they have any effects on the resale market.

Source: PropNex Investment Suite

Siglap and the broader East Coast have always had plenty of eateries. But around 2016 and 2017, the caf scene began expanding noticeably, with a wave of new openings adding to the area's already vibrant dining culture.

Looking at the condo market, prices surged by 29.7% between Q1 2017 and Q4 2018 before the July 2018 cooling measures dampened momentum. The pandemic then added pressure, with resale condo prices declining by 17.02% between Q4 2018 and Q2 2020. However, as the market recovered, prices rebounded and grew by 54.91% from Q2 2020 to Q2 2026.

HDB flats followed a similar trajectory, though on a slightly earlier timeline. Resale prices climbed by 29.03% between Q2 2017 and Q1 2018 before falling by 24.58% from Q1 2018 to Q1 2020 amid cooling measures and pandemic-related uncertainty. But much like the condo market, HDB resale prices recovered and soared by 56.35% between Q1 2020 and Q2 2026.

Causation or just co-occurrence?

While it's tempting to draw a straight line between caf openings and rising home prices, especially when they appear in tandem, the reality is much more nuanced.

More often than not, cafs are a symptom, not the root cause. Neighbourhoods like Tiong Bahru and Joo Chiat were already on the rise before cafs opened up. These are areas with charming pre-war shophouses, walkable streets, strong MRT connections, and a growing number of affluent residents. So cafs were simply riding the wave and catering to the crowd that was already moving in.

That said, cafs weren't irrelevant either. While they may not have initiated the transformation, they do enhance a neighbourhood's appeal and attract more foot traffic. More importantly, they create a vibe that developers are all too happy to sell.

Just look at how new launches are marketed today. You'll see phrases like "trendy eateries within walking distance" or "lifestyle hub" plastered across brochures. That's because developers know that for many younger or affluent buyers, proximity to a good brunch spot may be part of the decision-making process.

So should you buy near a caf?

If you're a homebuyer who values lifestyle, convenience, and weekend vibes, living near a cluster of great cafs can definitely elevate your day-to-day. But be prepared to pay a premium. For investors, cafs may be a useful way to indicate that an area is growing. However, don't rely on that alone to forecast capital gains. The coffee may be good, but the fundamentals still have to be better.

Final sip

Ultimately, cafs are not the reason property prices are rising. At least not on its own. Rather, they're part of a broader ecosystem that shapes how people experience and value a certain neighbourhood. They may not necessarily be the reason prices rise, but they can be the reason people start paying attention.

So who knows? Today you're buying a flat white, tomorrow maybe you're buying a flat.

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