Most Singaporeans grew up with the idea that they’d move out only when they purchase their own houses. But a recent study involving 967 Singaporeans showed that things might be shifting.
A sentiment study by PropertyGuru showed that young Singaporeans are increasingly choosing to rent and co-live with others.
This is largely due to an increase in property prices, with affordability ratings declining.
Most Singaporeans also shared that there is a growing need for more personal space and they do eventually intend to buy a property themselves.
In the study conducted between Jun to Jul 2022, 66% of young Singaporeans, aged between 22 and 29, had chosen to rent instead of buying a property due to a lack of savings.
Another 36% who are renting said they feel no urgency to buy property. This is despite the fact that one in three said they do feel the pinch of rising rental costs.
Almost a quarter of the respondents found current prices in the property market too high. At this point, they would rather save their money than buy a property.
According to PropertyGuru, property affordability rating has fallen from 64 to 58 in the second half of this fiscal year.
The rise in property prices has also made many keen to explore alternatives such as co-living.
This concept of shared housing would mean cheaper rent with common facilities. It is also appealing as they can include housekeeping services and full-furnished rooms.
Out of the 32% who expressed interest in such alternatives, most are young Singaporeans.
Despite the increased propensity to rent, PropertyGuru found that 72% of respondents still intend to buy a property within the next two years.
The top reason cited for this by 36% of those surveyed was a need for more personal space.
More Singaporeans find that there is a lack of personal space where they currently live.
This sentiment is significantly higher among millennials with 54% of them relating to this.
Among older Singaporeans aged between 30 and 39, 48% agreed with the sentiment.
Real estate business OrangeTee & Tie senior vice-president of research and analytics Christine Sun concurred with these results.
She said “privacy and freedom” are often reasons young Singaporeans give for entering the rental market, reported AsiaOne.
PropertyGuru shared that the pandemic has sparked changes in the property consumer market.
As hybrid work models continue for many, more seek bigger living spaces and demand for larger residential types has increased.
This in turn made HDB resale flats, which typically have larger square footage, the preferred option over private residential homes due to their affordability.
Demand has also pushed up prices of rare HDB flat types with big spaces such as maisonettes, executive apartments, and those under the Design, Build and Sell Scheme (DBSS).
PropertyGuru explained that in such an inflationary environment where private home prices are rising, a spacious HDB flat in a good location is considered a steal at S$1 million.
This has contributed to the increase of million-dollar HDB houses transacted this year.
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Featured image adapted from 99.co.
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