More young people in Singapore buying private properties, some for investment, Money News

SINGAPORE – When she was 28, Teri Tan made a move that many in her age group may not have considered: She paid about $1.25 million for a one-bedroom condominium unit at The Sail @ Marina Bay in 2021.

Tan leased out the unit, about 678 sq ft, while she was working as an investment banker on Wall Street in New York, collecting a monthly rent of $4,800 for over a year.

When she returned to Singapore in December 2022, she lived in it for a few months before leasing it out again.

About four years later, in January 2025, Tan sold the unit for about $1.25 million, the same price she had paid.

In the same month, she bought a new and larger unit at Pinetree Hill in Ulu Pandan.

The two-bedroom-plus-study unit, which is about 800 sq ft, cost $2.1 million and is expected to be ready in the third quarter of 2026, said Tan.

Both purchases were primarily for investment, Tan, now 32, told The Straits Times. She currently lives in a rented Housing Board flat in Boon Keng.

Data from Singapore’s three local banks – DBS Bank, UOB and OCBC Bank – revealed a growing number of young adults entering the property market, with home loan volumes for those under 35 growing steadily.

Between 2024 and 2025, DBS reported a 40 per cent jump in home loans taken by borrowers under 35 years old.

Similarly, UOB has seen a growing number of customers aged 35 and below taking up home loan packages, with loan volumes in this segment growing by more than 15 per cent year on year since 2023.

“The average loan quantum for this group has also risen by about five per cent annually between 2023 and 2025, surpassing the $1 million mark over the past two years,” said Jacquelyn Tan, head of group personal financial services at UOB.

OCBC reported a 36 per cent increase in the number of singles purchasing private properties for investment in 2025, underscoring a broader rise in investment activity among single borrowers.

The number of singles taking home loans for investment grew by more than 10 per cent on average each year between 2022 and 2024.

In 2025, singles made up one in three of OCBC’s new home loan customers who bought a private property, with about 20 per cent of the singles buying for investment. Of these single investors, around a quarter were under the age of 30.

Many of these young borrowers tend to favour new launches, with three in five opting for properties under construction, said Tok Geok Peng, head of group consumer secured lending at OCBC.

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

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, Hilda Tan, 31, bought her first property at 29.

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 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.

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

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 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, Lim added.

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.

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 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.

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This article was first published in The Straits Times. Permission required for reproduction.