Why young Singaporeans are investing in private property

“This is perhaps a reflection of how such property purchases have progressive payment schemes, enabling them to better pace their cash flow,” said Ms Tok.

OCBC financed more than a third of total private property market transactions in 2025.

ST spoke to some young investors about how they approach their property purchases.

For Ms Tan, the first purchase offered early lessons in property investing.

Funded with her savings and salary, the unit at The Sail appealed to her because of its prime location and views of Marina Bay.

“It was more of an ego purchase,” she said. “It was in the Central Business District with a view of Marina Bay. It was very cool.”

Ms Tan had planned to sell the property after three years. When she moved back to Singapore in December 2022, she lived in it for a short time before moving into a rental flat.

Over time, she realised that an investment property should be based on what the market wants, not what she personally likes.

That thinking shaped her subsequent purchase at Pinetree Hill, where she focused on factors such as proximity to schools, tenant and buyer demand, and longer-term holding value. She does not intend to live in the unit.

Another homeowner, Ms Hilda Tan, 31, bought her first property at 29.

Ms Hilda Tan, who was then earning over $100,000 a year as a business development manager, had paid $910,000 for a 635 sq ft condo unit at Waterfront Isle in Bedok Reservoir in December 2023.

Having lived independently since 2012, she said rising rents pushed her to consider buying a property.

“Moving every year was exhausting and restrictive. By 2023, the rental market was hitting fever pitch. Even tiny rooms in inconvenient locations were seeing their rents double overnight,” she said.

“When I ran the numbers, it was clear that paying a mortgage made far more sense.”

When Ms Hilda Tan relocated to Hong Kong for work in 2025, she rented out the unit for $3,200 a month.

While the property is tenanted, she noted that the actual returns are moderated by ongoing costs such as maintenance fees and sinking fund contributions.

“It is a practical lesson in accounting for the hidden costs of property ownership beyond just the mortgage,” she said.

Another young buyer, who declined to be named, had bought a resale executive condominium in Yishun with her partner in 2022 for $1.1 million.

The pair had wanted a space of their own, with the shared purchase making costs more manageable.

But the arrangement has since changed. As they are parting ways, the woman has decided to buy over her partner’s share of the property.

She will take on the mortgage on her own and will be subject to a fresh four-year lock-in period before she can sell the property, said the 32-year-old, who currently earns over $120,000 a year as a finance analyst.

Market observers say joint purchase arrangements are becoming more common, as younger buyers pool resources to enter the private property market early.

Mr Eugene Lim, key executive officer at property firm ERA Singapore, said: “Elevated prices have also accelerated inter-generational support, with some parents stepping in to help with upfront costs.”

However, such arrangements come with risks. Misaligned long-term objectives can lead to disputes if one party wishes to exit while another prefers to hold. Buyers are also jointly liable for the mortgage, meaning one party may have to shoulder repayments if the other defaults, said Mr Lim.

Changes in life stages can further complicate matters. Buyers who later marry may face additional stamp duties when purchasing another home.

Those who sell may have to wait 15 months before purchasing a resale HDB flat or up to 30 months before applying for a Build-To-Order flat, Mr Lim added.

Mr Bryan Seah, associate senior director at real estate agency OrangeTee, expects interest from young buyers to persist, supported by wealth transfers and property’s role as a long-term store of value.

The banks also caution that borrowers should take a measured approach.

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Ms Tan of UOB said property is a relatively illiquid asset and a long-term financial commitment. She urged buyers to take a measured view, factor in the full costs of ownership, and consider how interest rate changes could affect monthly repayments over time.

Investors should not rely solely on rental income, said OCBC’s Ms Tok.

Borrowers should have at least six months of mortgage repayments in liquid assets as a buffer and should also factor in costs such as maintenance fees and property taxes, she said.

This article was originally published in The Straits Times.