Homeownership Desire Upgrade Still Strong Among Youths Era Survey
and private condominiums in Singapore.
Farah, a first-time homebuyer, is eagerly anticipating the key handover for her new five-room Build-to-Order (BTO) flat in Tengah in 2028. However, the 27-year-old has plans to upgrade to a private condo once the five-year minimum occupation period (MOP) is over.
“Upgrading to a private condo is important to me because private property prices have steadily, if not exponentially, appreciated in the past few years,” Farah shares in an interview with EdgeProp Singapore. “Choosing a private condo will ensure that my future home is a better-appreciating asset.”
For Farah, buying a five-room flat with three bedrooms is a strategic step towards achieving her real estate dreams. “My partner and I hope to make a profit from selling our BTO flat, and use the proceeds to upgrade to a private condo,” she explains. “Additionally, we want the extra space for potential children or for our parents or in-laws to live with us in the future.”
Farah is just one of many Singaporean youths who are striving for the ‘Singapore Dream’ of material success, which includes owning private property for personal occupation and investment.
However, the definition of the ‘Singapore Dream’ is evolving as younger generations place more importance on finding meaning and purpose in their careers and lives. Despite this, home ownership and investment remain key aspirations among Singaporean youths, according to a survey conducted by ERA Singapore in collaboration with Ngee Ann Polytechnic, School of Design and Environment, published on Aug 14.
The survey also shows that a majority of Singaporeans are satisfied with their current housing arrangements, with 46% saying they are satisfied and 33% saying they are highly satisfied. However, many still have strong aspirations to upgrade their homes, with 34% looking to buy a private condo, 29% considering a HDB resale, and the rest interested in BTOs, executive condos (ECs) and landed properties.
The survey also revealed that the younger generation, defined as those aged 15 to 35, have a strong desire for home ownership. 85% of Gen Z respondents (aged 21 to 27) view it as important, with 35% planning to purchase a property within three to five years. However, currently only 24% of Gen Z respondents own their homes, with 23% intending to buy a resale HDB and 59% considering a BTO for their first home. 59% of Gen Z respondents also plan to upgrade to a new private condo within the next three to five years.
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Hanan Zailani, 25, and her fiance are one such Gen Z couple currently shopping for a four-room resale HDB flat. “It’s a more affordable option for us now,” Hanan explains. However, she also hopes to upgrade in the future to a five-room HDB flat to accommodate potential children or family members who may wish to live with them. “I believe it’s possible for us to achieve this if we continue to work hard and save money, especially considering the high cost of living in Singapore,” Hanan adds.
Similarly, the survey shows that the millennial generation (aged 28 to 43) also have strong aspirations for home ownership and upgrading. 35% of millennials aspire to own a private condo, with 54% targeting a property in the $1 million to $2 million price range and 20% interested in properties between $2 million and $3 million. Additionally, 45% of millennials expressed interest in purchasing a HDB flat, with 62% willing to spend between $500,000 and $1 million.
The desire for spacious homes is evident among survey respondents, with many preferring at least three rooms in their homes. This reflects the importance of providing diverse housing options, says Pow Ying Khuan, lecturer at the School of Design and Environment, Ngee Ann Polytechnic.
However, the desire for space is also tempered by concerns about affordability. 25% of respondents cited private home affordability as a major concern, with 64% of non-landed transactions in 1H2024 being priced below $2 million. 26% of respondents also expressed concerns about interest rates impacting affordability, and 13% mentioned the Additional Buyer’s Stamp Duty (ABSD) as a barrier to buying their next property.
“Despite financial barriers, the majority of potential buyers are willing to invest in their ideal living space, demonstrating the importance of home ownership as a cherished goal for many in Singapore,” says Marcus Chu, CEO of ERA Singapore.
Start your search for your dream HDB flat or private condo in Singapore today.