Private home prices rise, buyers become more pragmatic; high-income singles are more inclined to buy HDB flats | Lianhe Zaobao

Real estate prices in Singapore continue to rise, but this has not diminished the willingness of citizens to buy homes; instead, it has prompted buyers to become more mature and pragmatic in their attitudes. A survey shows that nearly half of the respondents said they would focus on accumulating savings before taking action to buy a house; additionally, among respondents aged 55 and above, 73% have no plans to move. PropertyGuru's "Consumer Confidence Survey," conducted among 2,000 Singapore citizens and permanent residents, indicates that 29% of respondents plan to purchase a home within the next 12 to 18 months. This shows that although property prices continue to rise, it has not dampened buyers' enthusiasm; rather, it has made them more thoughtful, deciding to save first before buying a home. Historically, the market has indicated that high-income earners, especially singles, tend to choose private housing more often. However, this survey's results show that singles with a monthly income of SGD 10,000 and above have different views on housing types. Among the high-income group aged 30 to 34, 42% still choose to live in private housing, while 54% of single high-income individuals aged 35 to 39 now prefer four-room government-built flats. The report states that this reflects that, despite financial stability, this group of buyers prioritizes space and manageable expenses. The survey also found that one-bedroom units, which were previously popular among singles, are no longer in demand. Now, singles looking to buy private housing are focusing on two-bedroom and three-bedroom units. This shift reflects that rather than chasing after asset classes, more buyers tend to choose housing that better meets their daily living needs and is affordable in the long term. 49% of respondents delay home purchases primarily to save first Further Reading New launches boost property prices; Analysis: If the economy does not stagnate, new homes are expected to steadily increase in price March new private home sales surged over four times month-on-month, reaching a five-month high In the rental market, the age group of 25 to 29 years old accounts for the majority at 42%. Their monthly income ranges from 2,500 to 9,000 yuan, with most choosing to rent to achieve independent living while considering home purchase only after establishing a certain financial foundation. The survey also shows that 49% of respondents delay buying a home primarily to save first. On the other hand, supporters of private housing are dual-income no kids (DINK) families, which consist of married individuals aged 30 and above with a household income of 10,000 yuan or more. 34% of DINK families plan to buy a home within the next 12 to 18 months, with 44% targeting non-landed private housing. Among this group, 53% believe that the appreciation of real estate value is the main motivation for buying private housing. At the same time, most prefer new projects because new private housing offers progressive payment schemes, allowing large expenses to be spread over time, making it easier to afford. The report states that while other groups are becoming more cautious, financially stable families' confidence in the real estate market is the driving force supporting the private housing market. Among the older demographic, 73% of respondents aged 55 and above have no plans to move from their current residence. Those who are considering moving mostly choose to relocate to similar types of housing, meaning that HDB residents continue to live in HDBs, while private housing residents will move to another private housing unit. Dr. Yao Lu, Managing Director of ECA International, said: "This year's survey shows that the residential market is developing towards a more mature direction. Buyers at different life stages are making more thoughtful home-buying decisions based on their financial readiness and a clearer understanding of housing needs."