We might be in the middle of a pandemic, but that hasn’t dented Singaporeans’ appetite for property. According to the PropertyGuru Consumer Sentiment Study H2 2021, private property transactions are still on an upward trajectory, and 74% of Singaporeans intend to buy a home in spite of rising prices.
Millennials, born between 1981 and 1996, have come of age and are now one of the key drivers of the surging demand for private property. The study also found that Singapore millennials have a strong preference for luxury property, with 32% seeking to purchase a luxury property in a long run.
Why More Millennials are Looking to Buy Luxury Property in Singapore
As millennials enter their thirties and forties, their attitudes towards housing, influenced by the pandemic, have the potential to reshape the housing market.
This trend is by no means restricted to Singapore. A Bloomberg report from earlier this year indicated that millennials, who represent 38% of the home buyers in the US, have had a later start than the previous generation when entering the property market, but are aiming for higher-end homes as a first property purchase.
1. Saving Up to Buy a Home Is a Priority
Singapore millennials show a strong inclination towards homeownership, with 71% prioritising saving up for a home, up by 2% from the previous quarter.
The pandemic might have heightened the drive to own a home, especially for those who still live with their parents and now desire greater privacy and more space due to more time being spent working and relaxing at home.
Related article: Single Millennial's Guide to Renting in Singapore on A 2.5K Salary
2. Many Plan to Upgrade To Private Property
The Five Cs might be obsolete, but the desire for private property has clearly not abated. In fact, the study found that 69% of millennial HDB owners intend to upgrade to private property.
The allure of condos, which are visually more arresting than HDB flats, is particularly strong right now as, frustrated by the pandemic, Singaporeans look to the home as a haven from the ambient pessimism.
The availability of condo facilities like swimming pools and gyms are also becoming more of a draw for millennials, who might no longer covet a swanky country club or gym membership due to increased time spent working from home.
Like many Singaporeans his age, Nigel hopes to live in a private property someday. The 35-year-old legal counsel is currently living in an HDB flat with his parents.
“Landed property is ideal as it means there is more space,” he says. “For condos, I like the idea of having attractive amenities, but space is important to me, so I would not want to settle for a small apartment.”
Related article: What Is a Full Facilities Condo and Where Can You Find Them?
3. An Appetite for Luxury
It appears that millennials don’t just want to get by—they want to enjoy the best creature comforts they can afford. This desire for a luxurious abode could be partly driven by increased time spent at home during the pandemic, which has raised the desirability of more spacious, lavish homes.
32% or almost 1 in 3 of the millennials surveyed had their sights set on purchasing a luxury property in the long run, with 66% indicating that such property would be a dependable long-term investment.
Other reasons for wanting to buy luxury property included convenience (cited by 42%), privacy (cited by 38%), social status (cited by 30%), and facilities (cited by 29%).
For 38-year-old private tutor Andy, who lives with his wife in an HDB flat, his aspirations to buy luxury property are pragmatic.
“I think luxury property is still a good form of investment as land is scarce and the direction in Singapore is still to attract rich foreign investors, so the buying power is still there,” he says.
Related article: 4 Reasons Why Sentosa Cove is Making A Comeback in 2021
Luxury Property Launches in Singapore
Here are some of the newer luxury projects in the market:
New luxury property projects in Singapore
$1,750,000 to $5,500,000
$898,000 to $16,322,000
$998,800 to $6,239,000
$998,000 to 6,239,000
$1,366,000 to $4,500,000
1. Martin Modern
Convenience is king for millennials, and 99-year leasehold condo Martin Modern’s central location at Martin Place in the River Valley area occupies a prime location that enables residents to walk to the Orchard Road shopping district in minutes. It enjoys unrivalled connectivity and can be reached in 10 minutes or less from three MRT stations on three different lines—Great World, Fort Canning and Somerset.
The development is scheduled to receive its Temporary Occupation Permit (TOP) in December 2021, and is thus a good option for buyers who wish to move in immediately. The 450 2- to 4-bedroom units spread out over two 30-storey towers are priced at $1,750,000 to $5,500,000.
Browse all Martin Modern units for sale on PropertyGuru.
2. One Bernam
The highly-anticipated 99-year leasehold condo, One Bernam, will be located on Bernam Street in the heart of the business district, making it ideal for those who work in the area. Nearby MRT stations within 4 to 9 minutes’ walking distance include upcoming stations Prince Edward Road MRT and Cantonment MRT on the Circle Line, as well as the existing Tanjong Pagar MRT on the East West Line.
Units are priced at $898,000 to $16,322,000 and range from 1-bedroom units to 5-bedroom penthouses. The property’s TOP is expected in the third quarter of 2025.
Browse all One Bernam units for sale on PropertyGuru.
3. Leedon Green
Located in the prestigious Holland area at Leedon Heights, this freehold condo development will be located 9 minutes’ walk from Farrer Road MRT and 11 minutes’ walk from Holland Village MRT.
Leedon Green units range from 1- to 4-bedrooms and are priced from $998,000 to $6,239,000. The development’s TOP is expected in the fourth quarter of 2023.
Browse all Leedon Green units for sale on PropertyGuru.
4. Midtown Modern
The much-anticipated mixed-use development Midtown Modern will enjoy an excellent location on Tan Quee Lan Street when it receives its TOP in the third quarter of 2025. Other than residential apartment units, the development will also comprise office space, retail shops and eateries.
The 99-year leasehold development consists of 1- to 4-bedroom units priced at $995,000 to $14,120,000, and will be located 3 to 8 minutes’ walk from three MRT stations on three lines—Bugis, Esplanade and Promenade.
Browse all Midtown Modern units for sale on PropertyGuru.
5. The Atelier
This freehold condo on Makeway Avenue in the Newton area will be located near the famous Newton Hawker Centre and about 5 minutes’ walk from Newton MRT and 11 minutes’ from Novena MRT.
The Atelier, which consists of just one 22-storey block of 120 units, is composed of 1- to 4-bedroom units priced at $1,366,000 to $4,500,000. The property is close to choice primary schools like ACS (Junior) and SJI (Junior), also offers easy access to the Orchard Road shopping district and the CBD.
Browse all The Atelier units for sale on PropertyGuru.
More FAQs about Buying Luxury Property in Singapore
Can Foreigners Buy Luxury Property in Singapore?
Yes, foreigners are eligible to buy non-landed luxury property but must pay Additional Buyer’s Stamp Duty (ABSD).
Where Can I Find Luxury Properties for Sale in Singapore?
PropertyGuru has one of Singapore’s biggest databases of property listings, including luxury property. Browse all luxury homes in Singapore on PropertyGuru.
How Much Does Luxury Property Cost?
That depends on the size and location. A one-bedroom luxury condo typically costs at least $1,000,000.
For more property news, resources and useful content like this article, check out PropertyGuru’s guides section.
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