1 in 2 Singaporeans plan to buy a new home in the next 2 years
And 1 in 3 millennials have their eyes on luxury property.
Despite finding property prices high, 74% of Singaporeans are looking into buying a new home, according to a report by PropertyGuru.
More than half of Singaporeans, at 53%, plan to purchase a new home within the next two years.
More people even found themselves in a position to purchase a home given their current financial status with 65% answering in the affirmative for H2 2021. This is a slight uptick from the 60% for H1 2021.
The survey attributed this trend to the availability of financing options, particularly those with low interest rates. 46% of Singaporeans see these options as satisfactory for them, and even 51% believe that now is the best time to get the most with what they’re spending.
Perhaps attributing to this short-term plans of buying a new home is the expectation of a price increase over the next five years, which is being anticipated by 83% of the respondents.
Millennials are changing the residential property market, PropertyGuru added, with 71% prioritising saving up for a home over other purchases, up 2% from the last half.
This ambitious generation also aspire to move up the property millennials, with 69% of HDB homewoners intending to upgrade to private property after selling their flat, 68% of which are eyeing a better condo property.
One in 3, or 32% of millennials, seek to purchase luxury property in the long run, 66% of which cite the purchase as a long-term investment. Other considerations for luxury homes include convenience, privacy, social status and facilities.
“There is no doubt that Millennials in Singapore are one of today’s fastest-growing segment of home buyers, with savings accumulated from pandemic sheltering. The delay in homebuying can also be due to Millennials’ increasing preference for a larger, luxury property that command higher prices than typical starter homes. While investing in property for capital growth is appealing, Millennials should exercise prudence and take the time to properly right-size their home ownership expectations based on their housing needs and financial situation as there is still considerable uncertainty in the economy,” said PropertyGuru country manager for Singapore, Tan Tee Khoon.