Spore’s young people up their demand for private housing

Singaporeans have remained steadfastly loyal to the demand for private homes despite recent headwinds such as higher interest rates, a moderating economy, and the implementation in April 2023 of market cooling measures.

Singaporeans are the dominant force in the local housing industry, with the majority of new homes purchased each year.

The surge in Singapore home buyers is a result of a steady increase in the demand for private residential properties, especially among young Singaporeans (defined as those between 26 and 35).

The cohort of adults in the age range of the new homebuyers has tripled between 2015 and 2022. We have identified three major demographic trends for new Singaporean home buyers based on industry data.

As in other housing markets, older Singaporeans traditionally dominate the market for private homes. However, there are compelling signs that this narrative is changing.

Over the last nine years, the number of Singaporean young people buying new private houses has steadily increased. This number has risen by 26 percentages points to 35% by 2023.

Red more on : The Continuum

After Covid’s demand surge of 2021, Singapore’s residential market entered into a new realm. Home prices rose amid disruptions in the supply chain and high interest rates.

The median age of Singaporean buyers of new private homes has been trending downwards in light of recent changes in buyer demographics. This indicates that younger generations will be playing a greater role in the market for new private residences.

Here is a look at the earning potential of Singaporeans under 30. Young Singaporeans who have growing incomes can afford new private homes, because they offer a payment plan that allows for progressive payments and supports those who might not be able to pay the full mortgage at first.

Singapore’s high employment rate is likely to be a factor in the increasing number of young local homebuyers.

Anecdotal evidence suggests that only a small percentage of Singaporeans received financial help from their parents to purchase their first home. In most cases they can pay for the equity portion themselves.

Lifestyle and investment factors are also important. Private property with high-end facilities, for example, may offer greater investment potential. A greater number of young home buyers may be able to make themselves felt with 32 new residential projects in the pipeline for this year.

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