In recent years, Singapore's private housing demand has seen remarkable shifts, fueled by a combination of population growth, economic factors, and changing lifestyle preferences. With the population climbing to 5.92 million in 2024 and a consistent annual growth rate of 2.1% since 2020, the demand for housing has intensified.
Particularly significant is the prime home-buying demographic of residents aged 25 to 34, making up 23% of the populace. The surge in dual-income households, now encompassing 68% of families, further boosts home purchasing power.
The prime home-buying demographic, aged 25 to 34, represents 23% of the population, significantly enhancing purchasing power through dual-income households.
Economic conditions have played a pivotal role in this housing boom. Between 2020 and 2024, Singapore experienced an average GDP growth of 3.8%, accompanied by an 18% spike in median household income. This era of growth has been supported by a combination of sustained housing demand driven by new household formation. Notably, expatriates account for two-thirds of renters in the market, influencing housing demand dynamics.
With low unemployment rates at just 2.1% in late 2024 and interest rates declining from 4.1% to 2.8%, financing options have become even more attractive. Additionally, robust foreign investment, totaling $92 billion in 2024, signals strong confidence in the market.
Government policies have also adapted to this shifting landscape. The relaxation of cooling measures in 2023 and the introduction of increased housing grants for first-time buyers in 2024 have made ownership more accessible. The government's continuous monitoring of cooling measures has been crucial for maintaining market stability while promoting homeownership.
Innovations like the "Plus" flat category for prime locations and an extended maximum loan tenure to 35 years provide further incentive for buyers.
Changing lifestyle preferences cannot be overlooked. The rise of remote work has led to a demand for larger living spaces, with 45% of buyers now prioritizing homes with study rooms.
The allure of suburban living is evident, with transactions in the Outside Central Region (OCR) soaring by 22% in 2024. Significantly, the trend of multi-generational households reflects evolving family structures, as 12% of private home buyers seek homes suitable for larger kin.
As economic prospects continue to encourage investment, Singaporeans are viewing property as a solid long-term choice. With a consumer confidence index at a decade-high and rising expectations for price appreciation, the appetite for private housing remains strong, shaping the future of Singapore's skyline.
