Younger S’poreans increased demands in buying private homes

Singaporeans continue to demand new private homes, even in the face recent headwinds. This includes higher interest rates and a slowing economy.

Singaporeans have always dominated the local housing market. They are responsible for the largest share of home purchases each year.

The upward trend in Singapore’s home sales is due to a consistent growth in demand, particularly from young Singaporeans aged between 26 and35.

Between 2015-2022, local adults of the above-mentioned age group who were new homebuyers in Singapore have more than doubled. According to proprietary industry statistics, we identified three distinct demographic trends for Singaporean new homeowners.

Singapore’s housing market is dominated by older Singaporeans, as it is in many other countries. However, recent evidence suggests that this trend may be changing.

The share of Singaporean youngsters buying new homes for private use has been steadily rising over the last nine year. This figure has risen 26 percentage points in the last nine years to reach 35%.

Singapore’s housing market, which was dominated by the Covid demand surge, entered a whole new era in 2021. The residential market is now characterized with rising home prices and increased interest rates, despite supply chain disruptions.

A recent change in demographics has seen the median age of Singaporean private home buyers on the decline, suggesting that younger local generations will have a larger role to play in the new residential market.

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Following is a snapshot of future earnings potential among younger Singaporeans. For young Singaporeans, new private houses are more accessible as they provide a gradual payment scheme that supports those with less income.

Singapore’s overall healthy employment rate may have contributed to the rising number of young private homebuyers in Singapore.

Anecdotal data indicates that a small portion of Singaporeans under 30 received financial assistance for their first house purchase from their parents. They could, however, pay for most of the equity in the purchase price.

Aside from macroeconomic considerations, lifestyle and financial factors are also at play. Investment potential may be higher for private properties that have premium facilities. The 32 new residential private projects that are scheduled to be launched this year could see a surge in young buyers.