Study shows young adults becoming more active in buying new private homes
Median age of Singaporean homebuyers now at record low of 39 years old.
The share of young Singaporean buyers of new private homes has nearly tripled in the past eight years amid rising income, strong labour market and improved financial literacy, according to a study by ERA Realty.
In a white paper, Wong Shanting, head of research and market intelligence at ERA, said the proportion of local homebuyers aged 26 to 35 jumped from just 9% of new private home sales in 2015 to 35% in 2023.
The median age of Singaporeans buying new private homes also fell to a record low of 39 years old last year from 45 in 2015.
ERA noted that Singaporeans aged 36 to 45, however, continued to dominate the private residential market albeit at a lesser degree. Homebuyers in that age group accounted for 37% of new home purchases last year, lower than their 44% market share in 2015.
Wong said the trend signals that the younger generation is poised to play a bigger role in the private housing market. According to her, higher wages and better financial literacy might be helping this generation to achieve goals in homeownership.
“New private homes are more accessible for young Singaporeans with growing income. New private homes allow for the progressive payment scheme which supports young Singaporeans who may not have the income to manage the full mortgage payment at the beginning,” she said.
“Equally so, the healthy overall employment rate in Singapore is a likely contributor to the growing number of young local private home buyers,” she added.
Citing a study by Franklin Templeton targeting, Wong also highlighted the inclination to invest among Singaporeans aged 18 to 35, which could be helping them save for the initial downpayment in purchasing their first homes.
“Private home offers opportunities for capital appreciation and passive incomes, which closely resonates with the young Singaporeans’ views on investing and building financial security at an early age,” she said.