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Trend of young Singaporeans buying private homes on the rise
Jan 29, 2024
Trend of young Singaporeans buying private homes on the rise Singapore
By   Internet
  • City News
  • Singapore housing market
  • buying property
  • private homes
  • housing market trends
Abstract: The trend of young people in Singapore purchasing properties has attracted widespread attention. A recent report reveals that an increasing number of Singaporeans under the age of 35 are buying private apartments, a trend that has sharply risen over the past nine years.

According to the report, the proportion of young Singaporeans aged 26 to 35 purchasing private residential properties increased from 9% in 2015 to 35% in 2023. This indicates a significant acceleration in young people entering the real estate market.


So, why are young people more inclined to purchase private residential properties rather than government Housing and Development Board (HDB) flats? On one hand, the increased incomes of young Singaporeans have surpassed the income limits for purchasing new HDB flats, or they may not meet the age criteria for buying new flats. This enables them to afford higher-end private residential properties.


On the other hand, young homebuyers generally perceive private residential properties as good assets for wealth accumulation. They believe that investing in private residential properties can yield higher returns as the prices of such properties typically appreciate over time.

Trend of young Singaporeans buying private homes on the rise

However, some experts have raised different viewpoints. They argue that while young people's incomes have increased, factors such as property price inflation must also be considered. Over the past decade, despite a 38% increase in the median monthly income of Singaporeans, the prices of non-landed private homes have risen by 52% during the same period. This indicates that the rate of property price growth far exceeds the rate of income growth. Therefore, funds for purchasing expensive private apartments may come from other sources, such as parental assistance.


Furthermore, the recent rise in interest rates has led to higher borrowing costs, which may affect the mortgage eligibility of older homebuyers, causing some of them to postpone their home purchase plans.


In addition to income and property price factors, the conditions and restrictions for purchasing HDB flats in Singapore are also one of the reasons why young people are turning to the private residential property market. Purchasing HDB flats typically requires meeting a series of conditions and requirements, such as age, family structure, and income requirements. These restrictions may make it difficult for some young people to qualify for purchasing HDB flats, leading them to choose private residential properties instead.


Moreover, the launch of new private residential projects and delays in the construction of Build-to-Order (BTO) flats may also lead more people to focus on the private residential property market, especially for resale apartments that are affordable and available for immediate occupancy.

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Trend of young Singaporeans buying private homes on the rise
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