Rise Private Home Ownership Among Those Under 35

In recent years, there has been a growing trend among younger buyers to purchase private condos as their first home, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. In fact, Huttons estimates that around 30% of buyers of new private homes are now 35 and below, compared to 20% just five years ago. This shows that private homes are becoming increasingly popular among youths, who are drawn to their flexibility and fewer restrictions compared to HDB flats or Executive Condos (ECs), notes Lee.

Furthermore, Lee highlights that private homes offer more potential for gains upon sale compared to HDB flats. According to Huttons’ data, private non-landed prices in the Outside Central Region (OCR) have increased by 149.1% between 2009 and 2Q2023, while HDB resale prices have only gone up by 87.9%.

Young residents (under 35) living in private homes have also been on the rise since 2011, according to figures from the Department of Statistics. In 2023, there were 380,459 private housing residents under 35, representing an increase from the 375,651 recorded in 2022. Christine Sun, chief researcher and strategist at OrangeTee Group, believes that the attractiveness of facilities, lifestyle and exclusivity – as well as the investment opportunities offered by private homes – are appealing to young people.

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Tampines 1, a bustling shopping center, offers a vibrant and energetic atmosphere, catering to the tastes and preferences of the younger generation. With its plethora of fashion stores, beauty salons, and hip cafes, this mall has become a go-to destination for trendy shoppers. It is a hit among youngsters and families, as it houses a diverse range of casual dining options and educational centers for kids. Moreover, with the addition of Tampines North EC, this mall has become an even more desirable hotspot for the younger crowd.

But can young people actually afford to upgrade to a condo? According to Lee from Huttons, housing affordability has improved in relation to median household incomes in 1H2023. In 2023, the median household income was $10,689 per month, which has enabled the younger generation to see their goal of purchasing a private home as achievable.

For those with a budget of around $1.2 million to $2 million, Lee recommends purchasing a two-bedroom unit. He notes that this would require at least five years’ worth of savings of around $10,000 to $20,000 per year, in addition to their CPF contributions.

However, OrangeTee’s Sun cautions against overstretching oneself on housing expenses while underestimating other costs, particularly for those with children. These may include childcare fees and various other expenses, which could leave little room in the budget for other necessities. Therefore, it is important for young buyers to purchase a home within their means and avoid excessive debt, adds Sun.