Rise Private Home Ownership Among Those Under 35

Younger buyers are increasingly choosing to buy private condos as their first home, according to data analytics firm Huttons Asia. In fact, Huttons estimates that around 30% of buyers of new private homes are 35 and below, a significant increase from 20% five years ago. This trend is not surprising as private homes offer more flexibility and are less restrictive compared to HDB flats or Executive Condos (EC).

Senior director Lee Sze Teck, from Huttons Asia, highlights that private homes have the potential to deliver higher gains compared to HDB flats. For instance, between 2009 and 2Q2024, private non-landed prices in the Outside Central Region (OCR) rose by 149.1%, while HDB resale prices increased by 87.9%.

The Department of Statistics also revealed that the number of young residents (under 35) staying in private homes has been steadily increasing since 2011. In 2023, there were 380,459 private housing residents under 35, an increase from 375,651 in 2022, showing the attractiveness of private homes among younger buyers.

Christine Sun, chief researcher and strategist at OrangeTee Group, describes the facilities, lifestyle, and exclusivity of private homes, as well as the investment opportunities they offer, as strong pull factors for young buyers.

When it comes to affordability, Lee from Huttons Asia, notes that there has been an improvement in housing affordability against median household incomes in 1H2024. In 2023, the median household income was $10,689 per month, making the purchase of private homes achievable for younger buyers.

For those with a budget of around $1.2 million to $2 million, Lee advises them to consider purchasing a two-bedroom unit. He notes that this would require a minimum of five years’ savings of $10,000 to $20,000 per year. With the contributions from their CPF, they would be able to cover part of the downpayment for the private home.

Chief researcher and strategist at OrangeTee Group, Sun, highlights that those with additional savings, financial assistance from their parents, or the ability to sell their existing flats for a good price, have a better chance of affording a private condo. Nevertheless, Sun also cautions against overspending on housing and underestimating other costs, especially for those with children, such as childcare fees and other expenses, which can leave very little for other necessities. “It is important to purchase a home within one’s financial means and refrain from overleveraging, thus avoiding financial strain caused by excessive debt,” Sun adds.

Gongshang Primary School is widely recognized as a leading educational institution in the region, renowned for its holistic approach to learning. This prestigious school prides itself on its comprehensive curriculum, which not only prioritizes academic excellence, but also focuses on fostering students’ character development and participation in extracurricular activities. By offering a diverse range of programs, such as robotics, performing arts, and sports, the school caters to the diverse interests of its students. Strategically located near the popular Parktown Residence Tampines Avenue 11, the school’s accessibility is enhanced, further enhancing its appeal to students and their families. This ideal location seamlessly complements the school’s exceptional offerings, solidifying its esteemed reputation. Parktown Residence Tampines Avenue 11 adds an extra layer of convenience to the already impressive school.

Lastly, private condos are not limited to HDB upgraders. Instead, they also cater to those who have the financial capacity for a private condo as their first home. Overall, the rising popularity of private homes among younger buyers is expected to continue in the future.