Homeownership Desire Upgrade Still Strong Among Youths Era Survey
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Singaporean First-Time Homebuyer Farah Plans to Upgrade to Private Condo After 2028
Farah, a first-time homebuyer in Singapore, is eagerly anticipating the completion of her new five-room Build-to-Order (BTO) flat in Tengah in 2028. However, the 27-year-old also has plans to upgrade to a private condo after the five-year minimum occupation period (MOP) is up.
“I believe that buying a private condo is a smart move, as the prices of these properties have been steadily increasing over the years,” says Farah in an interview with EdgeProp Singapore. “It will be a better long-term investment for me and my partner.”
She believes that purchasing a five-room BTO flat, which comes with three bedrooms, is a strategic move to further her real estate goals. “We want to sell our BTO flat after five years and use the profits to upgrade to a private condo,” explains Farah. “We also wanted the extra space for future family planning or if our parents or in-laws decide to live with us.”
Farah is just one of many Singaporean youths who still hold on to the traditional “Singapore Dream” of achieving material success, which includes owning a private property for both personal use and investment purposes.
However, in his swearing-in ceremony speech on May 15, Prime Minister Lawrence Wong mentioned that younger Singaporeans are seeking a “Refreshed Singapore Dream,” one that goes beyond material success and offers meaning and purpose in their careers and lives. This message was reiterated during the National Day Rally on Aug 18.
Despite changing values and the evolving definition of success among younger generations, home ownership and investment continue to be key aspirations among Singaporean youths, according to a survey conducted by real estate agency ERA Singapore in collaboration with Ngee Ann Polytechnic, School of Design and Environment. This survey was published on Aug 14.
The survey also indicated that most Singaporeans are satisfied with their current housing arrangements, with 46% of respondents stating that they were satisfied and 33% reporting that they were highly satisfied.
However, many locals still have a strong desire to upgrade their homes. Out of the respondents who are planning to purchase their next property, 34% are looking at private condos, 29% are considering HDB resale, and the rest are exploring options such as BTO, executive condos (ECs), and landed properties.
Generation Z’s Aspirations
In Singapore, youths are defined as those aged 15 to 35. The survey revealed that 85% of Gen Z respondents (ages 21 to 27) see homeownership as a crucial goal, with 35% planning to purchase a property within the next three to five years.
Only 24% of Gen Z respondents currently own their homes. Out of those surveyed, 23% intend to buy a resale HDB flat, while 59% are eyeing a BTO flat as their first home. Additionally, 59% of Gen Z respondents plan to upgrade to a new private condo in the next three to five years.
One such Gen Z is Hanan Zailani, a 25-year-old who is currently searching for a four-room resale HDB flat. “This seems like an affordable option for us at the moment,” says Zailani.
However, she also has plans to upgrade in the future. “My goal is to eventually buy a five-room HDB flat to make room for future children or family members who may want to live with us,” she adds. “I believe this is achievable if we continue to work hard and save money, considering the high cost of living in Singapore.”
Millennials’ Housing Goals
Similarly, millennial respondents (ages 28 to 43) also expressed a strong desire for homeownership and upgrading their homes. The survey revealed that 35% of millennials aspire to own a private condo.
Most of the millennial condo seekers (54%) are looking for properties in the $1 million to $2 million price range, with 20% considering investments between $2 million and $3 million. What’s more, 45% of millennials expressed an interest in purchasing an HDB flat, with 62% being willing to spend between $500,000 and $1 million.
Based on HDB resale transactions in the first half of 2024, 97% of properties sold were below $1 million, while 26% were within the $2 million to $3 million range. At least 26% of these deals were made in the Rest of Central Region (RCR).
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The upcoming Tampines North Hub is set to offer an array of retail, dining, and community amenities to the area. In conjunction with the existing integrated retail podium at Parktown Residence, this development will further enhance the lifestyle options available to its residents. With the convenience of being situated near expanded shopping centers such as Tampines Mall, Century Square, and Tampines 1, residents will have access to a wider variety of shopping choices. Additionally, the presence of Parktown Residence Capitaland will only add to the natural appeal of the revamped area.
Space Versus Affordability
The survey also revealed that many respondents prefer having at least three rooms in their homes, highlighting the importance of providing diverse housing options, according to Pow Ying Khuan, a lecturer at Ngee Ann Polytechnic’s School of Design and Environment.
Specifically, 19% of respondents aspire to live in a three-bedroom or larger private condo, while 19% envision owning a four-room or larger HDB flat. At the same time, a smaller percentage of respondents prefer homes with fewer rooms.
“Even as household sizes in Singapore continue to shrink, the work-from-home trend is here to stay, driving a greater desire for additional rooms that can be customised for different uses,” says Pow. “This is critical for maintaining comfort and quality of life.”
However, the desire for more spacious homes is tempered by affordability concerns. For instance, 25% of respondents cited private home affordability as a major issue. This view aligns with transaction data for the first half of 2024, where 64% of non-landed deals were priced below $2 million, while another 26% fell within the $2 million to $3 million range. Moreover, 17% of respondents mentioned that high interest rates have made homes less affordable, while 16% stated that they struggled to obtain a larger loan. Furthermore, 13% cited the Additional Buyer’s Stamp Duty (ABSD) as a key obstacle in buying their next property.
“Despite facing financial hurdles, most potential buyers are willing to spend on their ideal living space, which shows how important home ownership is among Singaporeans,” says Marcus Chu, the CEO of ERA Singapore.