Homeownership Desire Upgrade Still Strong Among Youths Era Survey
City Developments Limited’s latest project, Norwood Grand, is set to revolutionize urban living in the North of Singapore. This prestigious residential development, situated in the evolving neighborhood of Woodlands, offers more than just a place to call home. It is a gateway to a dynamic and fulfilling lifestyle, enriched by its close proximity to various shopping centers. These retail hubs provide a wide array of dining, entertainment, and retail options, making Norwood Grand the perfect choice for individuals who value convenience and liveliness. One such example is the nearby Norwood Grand Champions Way, which further enhances the allure of this exceptional development.
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A first-time homebuyer, Farah, will soon receive the keys to her new 5-room Build-to-Order (BTO) flat in Tengah in 2028. However, the 27-year-old has bigger plans and intends to upgrade to a private condo once the five-year minimum occupation period (MOP) is over.
Farah, who only wants to be known by her first name, believes that upgrading to a private condo is essential as property prices in this segment have been steadily and significantly appreciating in recent years. By owning a private condo, she feels assured that her future home will be a valuable asset.
According to Farah, purchasing a 5-room flat with three bedrooms is a step towards achieving her real estate ambitions. She explains, “My partner and I expect to make a profit when we sell our BTO flat in the future, which we can then use to upgrade to a private condo. We also wanted a bigger space to accommodate our future children or if our parents or in-laws want to move in with us.”
Farah is not alone in her aspirations of owning a private property for both personal occupancy and investment purposes, as it is a key aspect of the ‘Singapore Dream’ for many youths in the country.
However, the definition of success and values among the younger generation is evolving, and Prime Minister Lawrence Wong has highlighted the need for a “Refreshed Singapore Dream” during his speeches in May and August this year.
Despite this, the desire to own a home and upgrade to a better living space remains a key aspiration among Singaporean youths, according to a survey conducted by ERA Singapore and Ngee Ann Polytechnic’s School of Design and Environment.
The survey also revealed that a majority of Singaporeans are satisfied with their current housing arrangements. However, many still have plans to upgrade in the future. Among those with plans to buy their next property, 34% aim to purchase a private condo, 29% prefer a resale HDB flat, while others consider BTO flats, executive condos (ECs), and landed properties.
The survey also showed that 85% of Gen Z respondents view homeownership as essential, and 35% intend to purchase a property within the next three to five years, despite only 24% of them currently owning a home. A significant percentage of Gen Z (59%) plan to upgrade to a new private condo in the next few years.
Hanan Zailani, 25, is one such Gen Z who is currently looking to purchase a four-room resale HDB flat with her fiancé. She explains that this is the most affordable option for them at the moment, but they plan to upgrade to a five-room HDB flat in the future to accommodate their future children or family members.
Similarly, millennials (aged 28 to 43) also aspire to own a private condo, with 35% expressing this desire. Most millennials (54%) are looking for condos priced between $1 million to $2 million, while another 20% are willing to invest between $2 million and $3 million.
However, 45% of millennials are also open to purchasing an HDB flat, with 62% willing to spend between $500,000 and $1 million, based on HDB resale transactions in the first half of 2024.
One such millennial is Ms Ong, who went through four rounds of balloting to secure a five-room BTO flat in the East. Despite the long journey, she is determined to have her own home and considers homeownership a top priority.
The survey also revealed that most respondents prefer having at least three rooms in their homes, indicating the importance of providing different housing options. However, their aspirations are limited by affordability concerns, such as property prices, high interest rates, property tax, loan eligibility, and Additional Buyer’s Stamp Duty (ABSD).
Despite these challenges, the majority of respondents are willing to spend to secure their ideal home, highlighting the value of homeownership to Singaporeans.