1 in 3 Singaporean Millennials Eye Luxury Property, Survey Says

A third of Singaporean millennials are planning to own a luxury property as a form of long-term investment, underscoring the generation’s appetite for home-buying despite high prices, according to a survey by PropertyGuru.

One in three millennials, or those born between 1981 and 1996, aspire to buy a luxury property in the long run, with 66% of those surveyed saying they see this purchase as a long-term investment. The respondents also cited convenience, privacy, social status, and facilities as their key reasons for planning to purchase an upscale house.

The delay in homebuying can be due in part to Singaporean millennials’ preference for a luxury property that “commands higher prices than typical starter homes,” said Tan Tee Khoon, country manager of PropertyGuru Singapore.

“While investing in property for capital growth is appealing, millennials should exercise prudence and take the time to properly right-size their home ownership expectations based on their housing needs and financial situation as there is still considerable uncertainty in the economy,” Tan said.

Millennials are also making homebuying a higher priority than experiences like travel or staycations, indicating that this age group is on track to reshape the local property market, according to the survey.

Overall, more Singaporeans think that they can afford a property given current prices and their income, with 53% of respondents intending to purchase a house within the next two years.

Interestingly, 82% of respondents are willing to pay more for a sustainable property. The top eco-friendly features of a home they consider priorities are smart cooling systems, high-insulation windows and doors, and solar panels.

PropertyGuru’s survey is part of its consumer sentiment study that measures property optimism and expectations. It was conducted between May and July 2021, with 1,012 participants in Singapore.