As the next generation of homebuyers comes of age, their entry into Singapore’s property market has the potential to bring with it a fresh set of preferences and real estate trends. Young homebuyers, predominantly comprising millennials and Generation Z, are redefining the concept of homeownership by challenging traditional norms and embracing alternative approaches.
These tech-savvy, discerning buyers are introducing new perspectives and preferences that have the potential to challenge the current dynamics of the real estate landscape in Singapore. In this article, we will explore this evolving property market, delving into the emerging trends and behaviours of these young homebuyers. Join us as we uncover the different factors influencing their decision-making and the potential consequences for the future of real estate in Singapore.
Increasing Preference for Space-Efficiency in Smaller Homes
There is an inclination of young homebuyers in Singapore towards purchasing smaller, more space efficient homes. This trend is influenced by several factors and lifestyle preferences of millennials and Gen Zs, including affordability, minimalist living, convenience and practicality, and the shift in household structures.
Affordability and Space
With property prices steadily rising across the board, young Singaporeans looking for their first home will be more inclined to get a smaller home that is more affordable as compared to one with more space and a premium price tag. Moreover, many of these smaller homes like condos, for instance, are also conveniently located to a variety of facilities and amenities that are cost-effective and desirable to first-time homebuyers.
Minimalist Lifestyles
A significant portion of young homebuyers embrace the concept of minimalistic living–whether it is in the context of physically owning less items and having less clutter at home, or prioritising valuable experiences over material possessions.
As such, these young homebuyers may tend to be inclined towards smaller homes that offer simplicity and functionality, while encouraging residents to curate a less cluttered and more manageable living space.
Convenience and Practicality
With homes growing smaller in size and space remaining scarce, the younger demographic of homebuyers seek space-efficient solutions for their homes. Additionally, they also prioritise being able to have multi-use spaces within their homes for various functions.
Some practical features that young homebuyers seek in smaller homes are built-in storage solutions like wardrobes, shelves, and cabinets, multi-function furniture, open floor plans, and space-efficient bathroom fixtures like corner sinks and standing showers rather than bathtubs.
Embracing Technological Advancements
An increasing number of homebuyers are embracing cutting-edge technology, and this is evident in their preference for smart homes and smart home technology integrated into different aspects of their properties. This growing trend amongst millennials and Gen Z put an emphasis on their desire for convenience, sustainability, and a higher degree of connectivity in living spaces.
Demand For Smart Home Technology
Young homebuyers are looking for homes that are equipped with integrated smart home technology. These sought-after features encompass a diverse array of modern conveniences, including smart lighting, climate control systems, advanced security solutions like smart locks, security cameras, and alarms, as well as comprehensive home automation capabilities. Additionally, these tech-savvy homes offer appliances such as refrigerators, ovens, and washers, all equipped with energy-saving functions that can also be controlled remotely. Check out our previous article on smart homes and their benefits here.
These technological advancements give homeowners and residents more control over their environment while enhancing their convenience, security, connectivity, and sustainability–which we will discuss later on in the article.
Utilising Online Search Platforms and 3D/AR Viewings
Another aspect of the trend of embracing technology is the increasing use of online property search platforms, 3D floor plans and virtual viewings through augmented reality (AR). These platforms offer homebuyers user-friendly interfaces, advanced search filters, and a list of comprehensive property details. This enables buyers to conduct an initial search and shortlist some of their preferred property options. Moreover, the availability of virtual property tours with detailed descriptions and high-quality images enhances the overall homebuying experience by providing buyers with convenience at the tip of their fingers.
At PropertyLimBrothers, we offer buyers and sellers technological tools such as our signature home tour videos, along with 3D architectural visualisations, virtual tours and more. Moreover, we also offer tools to calculate property stamp duties including the buyer’s stamp duty, seller’s stamp duty, and rental stamp duty.
This tech-enabled approach to property search has allowed young homebuyers to have a transparent and immersive digital experience at each step in the process of buying a home. In addition to that, this enables buyers to get a great deal of information even before visiting a physical location.
Leading an Eco-Friendly Lifestyle
The trend of leading a sustainable lifestyle is playing a significant role in shaping the preferences of young homebuyers in Singapore. As this demographic is increasingly prioritising eco-friendliness and making lifestyle choices that align with their values and sustainability goals, homebuyers are seeking properties that integrate sustainable design elements and practices.
According to an article by the Straits Times, a study conducted by Deloitte found that Gen Z and millennials view climate change as one of their top concerns. Moreover, UOB’s Asean Consumer Sentiment study in 2022 highlighted that 34% of millennials and Gen Zs in Singapore are willing to pay a higher price for products that are sustainable.
With the Singaporean government taking multiple initiatives such as the “Garden City” Plan, Green Plan 2030, and HDB’s Green Towns Programme towards sustainability in Singapore over the last couple of decades, young millennials and Gen Z have been raised with themes of eco-friendliness and sustainability in various areas of their lives.
Green Practices and Sustainable Designs
One way that young homebuyers integrate this lifestyle choice into their property search is by looking for properties with green certifications. For instance, the Building and Construction Authority (BCA) certifies developments with the Green Mark for incorporating sustainable materials and practices throughout the building process.
Energy Efficiency
With smart technology integrated into homes, homeowners can also become much more energy efficient and keep track of their energy consumption levels. Another feature that young homebuyers are attracted to is the integration of renewable energy. This includes the use of technologies such as solar panels and waste management systems to lower carbon footprints and reduce energy consumption.
Choosing Older Properties
While a big portion of the millennial and Gen Z demographic values the practicality of having a small, space-efficient layout, there are some young homebuyers that still do prefer older properties like HDB resale flats that are decades old, according to a Straits Times article. Several factors that could contribute to this trend amongst younger homebuyers are the location, space, and future potential for investment.
Location
Older properties are typically located in well-established, mature neighbourhoods, making this a desirable choice for millennials who may be looking to start a family and find a home in proximity to good schools and live near their ageing parents and grandparents.
Larger & More Spacious
Many older HDB flats offer larger living spaces. These are typically the case for flats built particularly for bigger families as they come with a traditional layout and generous room sizes compared to newer properties. This is an attractive option for young homebuyers with larger and growing families, and to buyers seeking more spacious living accommodations for their “forever homes”.
In addition to more space, older properties also have unique architectural features and a sense of character that is rarer in newer developments. Young homebuyers are often drawn to the charm and uniqueness of these properties that highlight individuality.
Investment Potential
Older properties also offer young buyers the potential to renovate and customise their living spaces before seeking investment opportunities for the property. Some older freehold properties have the potential to appreciate in value over time due to factors like their size, location, redevelopment potential, or even historical significance. As such, these properties may align with the long-term financial and investment goals young homebuyers have.
Closing Thoughts
The evolving trends among young homebuyers in Singapore are set to significantly shift the property market over the coming years towards more sustainable, tech-driven and efficient living spaces. Moreover, the rising preference for space-efficient homes, smart technology, and the commitment to leading a sustainable life is reshaping the housing market and influencing the development of residential properties throughout Singapore.
As developers and property agents adapt to meet the needs and preferences of the younger demographic, and as the market continues to respond to these trends, the property market in Singapore is set to enter a transformative era defined by young homebuyers.
We hope you have enjoyed reading this article and found it insightful. If you did, and would like to stay updated on Singapore’s real estate landscape, stay tuned for more on properties and market trends at Insights by PLB!
Are you on board with any of these trends arising in Singapore’s property market? And are you in search of the perfect home for you at the moment? If you are a young home buyer looking to buy your first property and are looking for advice or guidance on your property journey, feel free to reach out to us here for any questions and concerns you have.
See you in the next one!
