property personalised
News
Homeownership, desire to upgrade still strong among youths: ERA survey
By Nur Hikmah Md Ali | August 21, 2024

ERA Singapore’s survey revealed that most Gen Z and millennials consider home ownership a top priority (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Follow us on  Facebook  and join our  Telegram  channel for the latest updates.

SINGAPORE (EDGEPROP) - A first-time homebuyer who only wants to be known by her first name, Farah, will receive the keys to her new five-room Build-to-Order (BTO) flat in Tengah in 2028. However, the 27-year-old intends to upgrade to a private condo when the five-year minimum occupation period (MOP) is up.

“Upgrading to a private condo is important to me because private property prices have steadily, if not exponentially, appreciated in the past few years,” says Farah in a phone interview with EdgeProp Singapore. “If I get a private condo, I’m assured that my future home will be a better-appreciating asset.”

She believes buying a five-room flat (with three bedrooms) is the way to further her real estate ambition. “My partner and I expect to get our first ‘pot of gold’ when we sell the BTO flat and use that to upgrade to a private condo,” continues Farah. “On top of that, we also wanted the space to make room for future kids or if my parents or in-laws want to move in with us.”

Read also: Hidden Gems: Older HDB flats in Marine Parade

Farah is one of many Singaporean youths still holding on to the ‘Singapore Dream’ of attaining material success, including owning private property for personal occupation and investment.



The Singapore Dream that most Singaporeans typically aspire to is defined as the 5Cs: owning a condo, car, cash, credit card and country club membership.

Refreshed Singapore Dream?

In his swearing-in ceremony speech on May 15, Prime Minister Lawrence Wong said that younger Singaporeans want a “Refreshed Singapore Dream, one that is not defined by material success alone, but also offers meaning and purpose in their careers and their lives.” He repeated the same message during the National Day Rally on Aug 18.

Despite the evolving definition of success and shifting values among younger generations, home ownership and investment — part of the traditional definition of the ‘Singapore Dream’ — remain key aspirations among Singaporean youths, according to a survey conducted by real estate agency ERA Singapore in collaboration with Ngee Ann Polytechnic, School of Design and Environment, published on Aug 14.

The survey indicates a healthy level of satisfaction among Singaporeans with their current housing arrangements: 46% of those polled said they were satisfied and 33% said they were highly satisfied.

However, locals have strong aspirations to upgrade even though most are satisfied with their current housing. The survey showed that among respondents with plans to buy a next property, 34% are looking to buy a private condo, 29% want to buy HDB resale, while the rest considered BTO, executive condos (ECs) and landed properties.

Read also: New measures to cool public housing resale market; LTV limit cut for HDB loans

Gen Z aspirations

In Singapore, youths are defined as those aged 15 to 35. The ERA survey showed that 85% of Gen Z respondents (those aged 21 to 27) viewed homeownership as important and 35% plan to purchase a property within three to five years.

Only 24% of Gen Z currently own their homes. Of those surveyed, 23% intend to buy a resale HDB, while 59% are eyeing a BTO flat as their first home. Additionally, 59% of Gen Z respondents intend to upgrade to a new private condo in the next three to five years.

One such Gen Z is Hanan Zailani and her fiance. The couple is currently shopping for a four-room resale HDB flat. “It’s an affordable option for us now,” says the 25-year-old.

However, Zailani has plans to upgrade in the future. “I want to upgrade to a five-room HDB flat in the future to make room for future children or family members who wish to stay with us,” she says. “I think this is achievable if my partner and I continue to work and save money, which is possible because the cost of living in Singapore requires us to work until we die.”

Millennial housing goals

Similarly, millennial respondents (age 28 to 43) shared strong owner-occupation and home-upgrading ambitions. The survey shows that 35% of millennials aspire to own a private condo.

Most millennial condo seekers (54%) target a $1 million to $2 million price range for their next property, with 20% looking to invest between $2 million and $3 million.

Read also: Over a third of HDB owners feel priced out of private housing: PropNex poll

Another 45% of millennials indicated an interest in purchasing an HDB flat. Of these, 62% are willing to spend between $500,000 and $1 million. Based on HDB resale transactions in 1H2024, 97% of the flats transacted were below $1 million.

One such millennial is Ms Ong, who is in her 30s and says owning a home is a priority. She went through four rounds of balloting to secure a five-room BTO flat in the East. “In the first three tries, my partner and I did not get a queue number at all,” she says. “It was only on the fourth try that we got one. Getting a flat’s been a tough journey, but I would do it all over again just to have my own home.”

Space versus affordability

The survey shows that many respondents prefer having at least three rooms in their homes, highlighting the importance of providing diverse housing options, says Pow Ying Khuan, lecturer at the School of Design and Environment, Ngee Ann Polytechnic.

Specifically, 19% of respondents aspire to live in a three-bedroom or larger private condo; similarly, 19% wish to own a four-room or larger HDB flat. At the same time, a smaller number prefer houses with fewer rooms.

“Even as household sizes in Singapore continue to shrink, the work-from-home trend is here to stay, driving a greater desire for additional rooms that can be customised for different uses, which is critical for maintaining comfort and quality of life,” adds Pow.

(Chart: ERA Singapore)

However, the desire for more spacious homes is tempered by affordability concerns. Challenges such as property prices, high interest rates and property tax, the inability to secure a larger loan and Additional Buyer’s Stamp Duty (ABSD) continue to impact Singaporeans’ home ownership aspirations.

Based on the survey, 25% indicated private home affordability is a concern. This view tracks with transaction data for 1H2024, where 64% of non-landed transactions were priced below $2 million, while another 26% were in the $2 million to $3 million range. At least 26% of these deals occurred within the Rest of Central Region (RCR).

(Chart: ERA Singapore)

The price gap between new and resale homes remains noticeably wide, with median prices in the RCR and Outside Central Region (OCR) showing a difference of nearly 37% and 39%, respectively. Meanwhile, 17% of the respondents said interest rates have impacted affordability and 16% said they have impacted their loan eligibility. Another 13% agree that the ABSD is a key barrier to buying their next property.

“Despite financial hurdles that potential buyers may face, the majority are ready to spend to secure their ideal living space, highlighting the importance of home ownership as a cherished goal for many in Singapore,” says Marcus Chu, CEO of ERA Singapore.

Check out the latest listings for HDB properties


More from Edgeprop