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One key takeaway from a recent consumer sentiment study showed that two-thirds, or 66 per cent, of young Singaporeans, are choosing to rent instead of buying their own property.
The study from real estate portal PropertyGuru showed that 22 to 29-year-old respondents said they preferred to rent at the moment, rather than purchase property because they don’t have enough savings.
Among the young respondents, 21 per cent say that property prices at present are too high and are choosing to save money instead.
Because of these sentiments, some have expressed the desire to explore other options such as co-living or shared housing, which means common facilities but less expensive rental rates.
They said that fully-furnished rooms and housekeeping services are why co-living is an appealing option for them.
Among those who do rent, 36 per cent say they feel no urgency to buy property for now.
Overall, among all the respondents, one out of three has been feeling the effects of higher rental prices but cannot find a less expensive rental than what they have now.
Additionally, 55 per cent of the respondents are affected by property tax adjustments.
The second key finding from the report revolves around the reason to look for a new home.
Nearly three-fourths or 72 per cent of the respondents said they plan on buying property within the next two years, with the need for a larger personal space cited as the top reason (36 per cent).
In 2021, only 27 per cent cited this as the top reason.
Among those who cited the need for more personal space as the top reason for buying property, 54 per cent are aged 22 to 29 and 48 per cent are those aged 30 to 39.
Interestingly, the percentage of respondents who said they would buy a new property for the purpose of investment dropped from 44 per cent last year to 33 per cent this year.
“The pandemic and evolution of hybrid work have sparked a shift in consumer buying behaviour. Our last Consumer Sentiment Study H1 2022 found that 42% of Singaporeans expected greater demand for larger homes post-pandemic.
As work from home continues for most professionals in Singapore, property seekers are finding the need for more living space. That increases the demand for larger residential types and makes HDB resale flats a preferred option over private residential homes due to its affordability,” said Dr Tan Tee Khoon, the Country Manager of PropertyGuru Singapore.
Among respondents who said they want a new home, 30 per cent said they prefer HDB resale flats, 23 per cent said they want resale non-landed properties, and 6 per cent said they prefer resale landed properties.
“Rare HDB flat types that feature big spaces like those under the Design, Build and Sell Scheme (DBSS), or executive apartments and maisonettes which are no longer in development can fetch higher prices, some surpassing the million-dollar mark. In an inflationary environment with prices of private homes rising, a spacious HDB flat in a great location going for $1 million is an absolute steal, contributing to the increase of million-dollar HDB houses transacted this year,” added Dr Tan.
The number of couples about to be married and who want to buy a new flat have increased from 10 per cent earlier this year; growing to 22 per cent.
Also, the demand for new HDB BTO launches saw a jump of 8 per cent late last year; going up to 16 per cent early in 2022. /TISG
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