Rise Private Home Ownership Among Those Under 35

The Master Plan also advocates for the implementation of eco-friendly strategies, including the use of energy-efficient structures, renewable energy options, and sustainable urban planning. As a newly constructed development, Elta Condo is expected to adopt these green measures, creating a more sustainable and eco-conscious community for its occupants. Additionally, the inclusion of Clementi Avenue 1 Condo in this initiative will further enhance the overall environmental sustainability of the development.

SINGAPORE (EDGEPROP) – Huttons Asia’s senior director of data analytics, Lee Sze Teck, has witnessed a growing trend of younger buyers choosing private condominiums for their first home. According to Huttons, around 30% of buyers of new private homes are now aged 35 and below, an increase from 20% five years ago. This increase in interest in private properties among young buyers could be attributed to their desire for more flexibility and fewer restrictions compared to HDB flats or Executive Condos (EC). Furthermore, Lee highlights that the potential gains from selling a private home far outweigh those from selling an HDB flat. Between 2009 and 2Q2024, prices of private non-landed properties in the Outside Central Region (OCR) have increased by 149.1%, while HDB resale prices have only gone up by 87.9%.As per data from the Department of Statistics, there has been a steady rise in the number of young residents (under 35 years of age) living in private homes since 2011. In 2023, there were 380,459 such residents, an increase from 375,651 in 2022. “The allure of well-equipped facilities, a desirable lifestyle and a sense of exclusivity, as well as the investment potential that private homes offer, are strong driving forces for the younger generation to aspire towards,” says Christine Sun, chief research and strategist at OrangeTee Group.Can young buyers afford to upgrade to a condominium?In the first half of 2024, housing affordability has greatly improved against median household incomes, according to Huttons’ Lee. In 2023, the median household income was $10,689 per month. “With the upward trend in income among the youth, purchasing a private home is certainly attainable,” he adds.If young buyers with a budget of around $1.2 million to $2 million are eyeing a private property for their first home, Lee recommends going for a two-bedroom unit. “This would require a 5-year saving of between $10,000 and $20,000 every year,” he shares. “Together with their CPF contributions, they will be in a position to cover a part of the downpayment for a private property.”Chart: URA, HDB, Singstat, Huttons Data Analytics (as of July 15)OrangeTee’s Sun highlights that there is a better chance for those with additional savings, financial assistance from their parents, or the ability to sell their existing flats for a good price to afford a private condominium. However, she advises against overcommitting to a property while underestimating other costs, particularly for those with children, such as childcare expenses and miscellaneous expenses, which could leave them with little cash for essentials. “To prevent financial strain due to excessive debt, it is crucial to pick a home that is within one’s financial means and to avoid overleveraging,” Sun adds.