We might be in the middle of a pandemic, but that hasn’t dented Singaporeans’ appetite for property. According to the PropertyGuru Consumer Sentiment Study H2 2021, private property transactions are still on an upward trajectory, and 74% of Singaporeans intend to buy a home in spite of rising prices.

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Millennials, born between 1981 and 1996, have come of age and are now one of the key drivers of the surging demand for private property. The study also found that Singapore millennials have a strong preference for luxury property, with 32% seeking to purchase a luxury property in a long run.

 

Why More Millennials are Looking to Buy Luxury Property in Singapore

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As millennials enter their thirties and forties, their attitudes towards housing, influenced by the pandemic, have the potential to reshape the housing market.

This trend is by no means restricted to Singapore. A Bloomberg report from earlier this year indicated that millennials, who represent 38% of the home buyers in the US, have had a later start than the previous generation when entering the property market, but are aiming for higher-end homes as a first property purchase.

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1. Saving Up to Buy a Home Is a Priority

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Singapore millennials show a strong inclination towards homeownership, with 71% prioritising saving up for a home, up by 2% from the previous quarter.

The pandemic might have heightened the drive to own a home, especially for those who still live with their parents and now desire greater privacy and more space due to more time being spent working and relaxing at home.

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Related article: Single Millennial's Guide to Renting in Singapore on A 2.5K Salary

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2. Many Plan to Upgrade To Private Property

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The Five Cs might be obsolete, but the desire for private property has clearly not abated. In fact, the study found that 69% of millennial HDB owners intend to upgrade to private property.

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The allure of condos, which are visually more arresting than HDB flats, is particularly strong right now as, frustrated by the pandemic, Singaporeans look to the home as a haven from the ambient pessimism.

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The availability of condo facilities like swimming pools and gyms are also becoming more of a draw for millennials, who might no longer covet a swanky country club or gym membership due to increased time spent working from home.

Like many Singaporeans his age, Nigel hopes to live in a private property someday. The 35-year-old legal counsel is currently living in an HDB flat with his parents.

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“Landed property is ideal as it means there is more space,” he says. “For condos, I like the idea of having attractive amenities, but space is important to me, so I would not want to settle for a small apartment.”

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Related article: What Is a Full Facilities Condo and Where Can You Find Them?

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3. An Appetite for Luxury

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It appears that millennials don’t just want to get by—they want to enjoy the best creature comforts they can afford. This desire for a luxurious abode could be partly driven by increased time spent at home during the pandemic, which has raised the desirability of more spacious, lavish homes.

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32% or almost 1 in 3 of the millennials surveyed had their sights set on purchasing a luxury property in the long run, with 66% indicating that such property would be a dependable long-term investment.

Other reasons for wanting to buy luxury property included convenience (cited by 42%), privacy (cited by 38%), social status (cited by 30%), and facilities (cited by 29%).

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For 38-year-old private tutor Andy, who lives with his wife in an HDB flat, his aspirations to buy luxury property are pragmatic.

“I think luxury property is still a good form of investment as land is scarce and the direction in Singapore is still to attract rich foreign investors, so the buying power is still there,” he says.

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Related article: 4 Reasons Why Sentosa Cove is Making A Comeback in 2021

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1. Martin Modern

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