Young Singaporeans has more interests in private housing

Singaporeans are still buying new private houses despite recent challenges, such as rising interest rates, slowing economic activity, or the implementation of market cooling in April of 2023.

Singaporeans consistently dominate the local property market, taking the lion’s portion of the annual home purchase.

The rise in Singaporean homebuyers follows a steady demand for new private homes, especially from younger Singaporeans. We define these as people aged between 26 to 35 years.

The number of adults living in the locality who fall into the above age group and are new private home buyers will more than triple between 2015-2022. On the basis proprietary industry information, covering 37,000 Singaporean buyers of new homes, we have identified several demographic trends.

Singapore has a housing market that is similar to other markets around the world. Older Singaporeans dominate this market. There are now signs of a change in this popular narrative.

The number of Singaporean teenagers who have purchased new private residences has increased steadily over the past nine. The figure has risen from 26 percent to 35 percent in 2023.

After Covid led the demand surge in Singapore’s Residential Market, 2021, it entered a brand new realm. It was characterised by rising house prices amid supply-chain disruptions and elevated rates.

As a result of the most recent changes to buyer demographics, Singaporean new home buyers have been in a downward trend. This means that younger Singaporeans will be more influential in the private residential new market.

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What follows is a peek at the future earning power of Singaporeans. Private homes for sale are more accessible to younger Singaporeans as their incomes grow. They offer a flexible payment schedule and can help those who don’t have enough money at first to cover the entire mortgage.

Singapore’s low unemployment rate and the number of young home buyers in Singapore are likely contributing factors.

Anecdotal information indicates that only a minority of Singaporeans receive financial assistance from parents for the purchase of their first property. However, most often, they would be able to cover the equity portion of their purchase themselves.

In addition to macroeconomic factors, lifestyle considerations and investment considerations also come into play. For example, private property that has premium facilities can have greater investment value. As 32 private residential project launches are planned for this coming year, more young home buyers will be present.

 

 


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