More young Singaporeans renting due to high property prices according to study

More young Singaporeans between the ages of 22 and 29 are choosing to rent houses, according to a recent study by PropertyGuru. 

This is despite one in three of the 967 respondents surveyed feeling the pinch caused by rising rental prices.

The study, which measures property sentiments and expectations around the local property market from the first half of 2022, found that more Singaporeans would rather rent than purchase a house because of reasons such as lack of savings and no urgency to buy a property.

About one third of those surveyed were also looking at cheaper alternatives such as co-living, the concept of shared housing with cheaper rent, common facilities and appealing factors like housekeeping services and full-furnished rooms.

The study added that about 55 per cent of those surveyed were also affected by property tax adjustments.

“Nearly a quarter of young Singaporeans (21 per cent) have found current property prices too high, opting to save their money rather than getting a property of their own,” said the study.

Another notable finding is the increased need for personal space amongst Singaporeans, specifically millennials, said the study which was conducted between June and July. 

Due to the lack of personal space where they currently reside, about 250 respondents intend to buy a property within the next two years

With regards to housing loan types, most young Singaporeans would rather opt for HDB loans. Inadequate cash flow was cited as the key reason among low-income earners.

However, 35 per cent of HDB owners on an HDB loan intend to refinance with a bank loan due to the lower interest rate and payment and the opportunity to save more money.