The “Sell One, Buy Two” Strategy in 2025: Real Stories from Singaporean Homeowners
The "Sell One, Buy Two" strategy gained popularity in Singapore after the Additional Buyer's Stamp Duty (ABSD) was introduced in...
Read More
TLDR
The housing landscape in Singapore reflects evolving aspirations and desires, especially among the younger generation. Owning private property is a significant life goal for many, with economic progress enabling more individuals to consider private housing as their initial purchase. Despite a majority residing in public housing, there has been a gradual shift towards private housing ownership. As property prices rise, meeting housing needs while balancing land limitations becomes a key challenge. Real estate experts emphasize the need for strategic decision-making in buying or selling property, considering individual circumstances and market dynamics. Various resources provide insights and guidance for navigating Singapore’s real estate market effectively.
The enduring challenge of meeting the housing needs and desires of Singaporeans is a regular subject broached in Parliament. It also routinely serves as a touchstone for dialogues among Singaporeans outside the governmental sphere.
In the case of Mr. Tan Cheng Siong and his wife, when they decided to leave his parent’s three-room apartment and purchased their first home from the Housing and Development Board (HDB) in 1986, their primary driver was the necessity of additional living space.
Mr. Tan, now a 67-year-old executive director and consultant of a financial advisory firm, recalls, “There were just the two of us then, but we foresaw starting a family. Therefore, we opted for the larger executive maisonette.”
Back then, the Tans had to part with a substantial sum of S$111,000 to secure their dream home in Hougang. Nowadays, their property can command between S$830,000 and S$1.2 million in the resale market, judging by the prices of similar maisonettes in the area.
Fast forward nearly forty years, and it is evident that not only have property prices soared in line with Singapore’s swift economic advancement, but so too have the housing expectations and aspirations of the younger generations.
Consider the case of a young entrepreneur, 25-year-old Ng Zhi Jian. In 2021, he sought independence from his parents’ flat and rented a one-room condominium, driven by a yearning for more personal space.
A few weeks back, Mr. Tan made the decision to move back in with his parents; the escalating rent made it a necessity rather than a choice. His previous experience of residing in a privately owned home has impressed upon him a preference for private properties, and he claims that purchasing a public flat is a less likely prospect for him in the future.
Mr. Tan also stated that if the cost of private residences remains beyond his reach, he would consider relocating to a neighboring nation to realize his dream of living in a private home.
Mr. Tan’s aspiration reflects a broader trend among Singaporean youth. The recent release of the TODAY Youth Survey revealed that a significant majority, four out of every five young respondents, view owning a private property as a life goal. Furthermore, six out of ten anticipate surpassing their parents’ housing conditions.
Read moreGreat Reasons for Condo Owners to Sell upon Reaching TOP – A Guide to Sub-Sale Transactions
The 2023 edition of the TODAY Youth Survey, conducted in August, gathered responses from 1,000 individuals aged between 18 and 35. This annual survey, now in its third iteration, probes the perspectives of young people on a range of topics including housing, the value of a university education, career progression, wage disparity between blue and white-collar jobs, and civic involvement. The outcomes of this study were disclosed last month.
In conclusion, the findings reiterate the importance Singaporean youth attach to owning private property – eight out of 10 young individuals cited it as a life goal, while six out of 10 expect to surpass their parents in terms of housing conditions.
Economist Tan Wei Ming pointed out that the flourishing housing aspirations of younger generations are simply a reflection of societal affluence. Despite Singapore’s slowing economic growth due to its maturing economy, there has been a 33 per cent increase in median household income over the last ten years, according to official statistics. This has surged from S$7,566 in 2012 to S$10,099 in 2022.
“Economic progress naturally births job opportunities, enabling individuals to aim for higher basic necessities,” said Mr Tan, who serves as an economic consultant at the financial service firm, CGS-CIMB.
During the infancy of nation-building in the 1960s, the drive for homeownership led most people to opt for affordable public housing, Mr Tan recalled.
Currently, despite a still substantial number of residents – approximately 80 per cent – residing in public housing, there has been a gradual decrease in this percentage over the past ten years.
Information from the Singapore Department of Statistics reveals that around 81.6 per cent of inhabitants lived in public housing in 2012. This figure marginally fell to 79.0 per cent in 2017 and further descended to roughly 77.9 per cent last year.
Mr Tan acknowledged that “A rising number of individuals, including first-time buyers, are now able to consider private housing as their initial purchase.”
In its endeavor, the governing body consistently aims to meet escalating demands by elevating public housing standards and its associated amenities. This is done while maintaining housing affordability, using metrics such as house price-to-income ratios and the percentage of monthly income used for mortgage repayments. These ratios remain less than those of international standards.
Addressing the housing needs and dreams of citizens is an enduring consideration, with the subject regularly discussed in parliamentary sessions. Beyond the parliament, it’s a frequent topic of conversation, whether at local cafes, internet discussion boards, or social platforms.
However, what often goes unnoticed are the compromises required when a land-limited urban nation of 719 square kilometers strives to fulfill the housing desires of more than four million inhabitants (from a total populace of 5.92 million).
Given the restricted land area and city-state restrictions, some compromises are inevitable, as economic experts and real estate analysts have underscored.
For instance, allocating more territory for private real estate development would result in less availability for public homes. While a subdued resale market might be beneficial for prospective buyers, it implies that the assets of current homeowners cannot increase in value — which may even affect their retirement plans, considering most citizens finance their homes through their Central Provident Fund (CPF) savings.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!
Investing in property has long been a popular method for growing wealth in Singapore. With million-dollar HDBs being sold and...
Read More
6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others
TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...
Read More
3 Things You Need to Know if You Are Buying a Second Property
TLDR When considering buying a second property in Singapore, ensure eligibility by meeting the Minimum Occupancy Period (MOP) and understanding...
Read More
Exploring Singapore: The Top 5 Surprising Facts You Never Knew
Singapore, a city-state in Southeast Asia, is known for its rich cultural heritage, diverse population, and vibrant food scene. This...
Read More
6 Misleading Claims Property Agents Often Make That Savvy Buyers Are Aware Of
TLDR Real estate agents can sometimes use deceptive tactics to push sales. Be cautious of claims about other interested buyers,...
Read More
The Top 10 Traits Of A Good Real Estate Agent
TLDR Jayson Ang, a reputable real estate agent in Singapore, offers extensive experience and a data-driven approach to guide clients...
Read More
URA 2025 Draft Master Plan: 6 Under The Radar Changes You May Have Missed
TLDR The URA 2025 Draft Master Plan outlines major developments in Singapore over the next 10-15 years, with 80,000 new...
Read More
Subscribe to Jayson Ang’s Singapore Property Newsletter
TLDR Jayson Ang's Singapore Property Newsletter offers valuable insights on real estate investments, market trends, and expert advice. The newsletters...
Read More
When Should You Consider Lowering the Price of Your Property That Has Been on the Market for Months?
TLDR Selling a property can be challenging without the right price strategy. Adjust your asking price to attract more buyers...
Read More
6 Essential Tips for Singaporean New Homebuyers
TLDR Best practices for first-time homebuyers, the key points include setting clear and detailed goals, planning a realistic housing budget,...
Read More
A Beginner’s Guide to Homebuying: How to Choose the Perfect Property
TLDR When considering property investments, understanding your motives is crucial. Factors like accessibility to amenities, remaining lease, transaction history, rentability,...
Read More
Discover the 3 Top Factors Impacting HDB Resale Valuation in Singapore: What Every Buyer Must Know!
TLDR The blog post discusses the increased demand for HDB resale flats and the impact on prices. It emphasizes the...
Read More
Top 5 Places to Buy Local Art in Singapore
Singapore, a melting pot of cultures and traditions, is not only known for its breathtaking cityscape, delectable food, and shopping...
Read More
Top 5 Reasons : Why Investing In Singapore’s Property Market Is Recession-Resistant
Singapore's property market has long been considered a safe haven for investors, even during times of economic uncertainty. The city-state's...
Read More
Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?
TLDR The pandemic-induced recession has surprisingly boosted property prices in Singapore, defying conventional economic trends. Factors like cost-push inflation, limited...
Read More
Introducing Top 5 Power Property Tips
Hello, everyone! We are excited to welcome you to our blog posts! On this blog, we will be sharing daily...
Read More
Top 5 Differences Between OCR, RCR And CCR In Terms Of Lifestyle And Culture
Singapore, a vibrant and diverse city-state, is known for its unique blend of cultures, modern architecture, and thriving economy. The...
Read More
5 Singapore Property Investing Myths Debunked
In the world of property investing, misconceptions can lead to poor decisions and financial losses. In Singapore, there are several...
Read More
5 Most Common Property Investment Scams To Watch Out For In Singapore
Property investment scams are unfortunately prevalent in Singapore, and unsuspecting investors can fall victim to these scams, leading to significant...
Read More
