Singaporeans’ demand for new private housing is on the rise

Singaporeans’ demand for new homes has been strong despite recent headwinds. These include higher interest rate, moderated economic activity and the implementation of cooling measures on the market in April 2023.

Singaporeans continue to dominate the local real estate market. They account for the majority of all new home purchases.

The increase in Singaporean buyers comes after a steady rise in demand for new residential homes in Singapore, notably among young Singaporeans between the ages of 26-35 years.

Between 2015 and the year 2022, the number of local adults who are in this age bracket of new private home buyers will have more than tripled. On the basis of proprietary industry data, which covers a sample size 37,000 Singaporean private home buyers, we have identified a number of demographic trends.

In Singapore, the housing market has traditionally been dominated by older Singaporeans. But there are signs of a shift.

In the past nine-year period, the percentage of Singaporean youths buying private homes in Singapore has been steadily increasing. This figure has increased by 26 points, to 35%.

Singapore’s residential housing market has entered a different realm after the Covid-led surge in demand in 2021. This new world is characterized by rising prices, supply chain disruptions, and higher interest rates.

Due to the recent changes in demographics of buyers, the median age for Singaporean home buyers has been declining, which indicates that the younger generations are more likely to play a significant role in Singapore’s new residential market.

This gives an idea of the earning potential for younger Singaporeans. The new private homes available to young Singaporeans are more affordable, since they have a progressive mortgage payment system and help those who do not have enough income at the start.

Singapore’s strong employment rate has likely contributed to the growth in young private home buyers.

A small number of Singaporeans, based on anecdotal reports, have received financial support from their parents when purchasing their first home. Most of the time, however, they are able to pay the equity part of the price.

Investment and lifestyle factors also play a role. Private properties with superior facilities could have a greater investment potential. There are 32 private residential projects launching this year. This could lead to a rise in younger home buyers.

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