More Young Adults Under 35 Buying Private Property in Singapore – Some as Investment

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 5 per cent annually between 2023 and 2025, surpassing the S$1 million mark.

At OCBC, singles made up one in three of the bank’s new home loan customers who bought private property in 2025, with about 20 per cent of 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. OCBC also reported that it financed more than a third of total private property market transactions in 2025, giving it a broad view of the trend.

The article profiles Ms Teri Tan, who at 28 paid about S$1.25 million for a one-bedroom unit of about 678 sq ft at The Sail @ Marina Bay in 2021. Working as an investment banker on Wall Street at the time, she leased the unit out for S$4,800 a month for over a year.

After returning to Singapore in December 2022, she lived in it briefly before leasing it out again. In January 2025, she sold the unit for about S$1.25 million – roughly the same price she paid. She then bought a two-bedroom-plus-study unit of about 800 sq ft at Pinetree Hill in Ulu Pandan for S$2.1 million, expected to be ready in Q3 2026.

Both purchases were primarily for investment. Ms Tan, now 32, currently lives in a rented HDB flat in Boon Keng. She described her first purchase as an “ego purchase” – a unit in the CBD with a Marina Bay view. Over time, she learnt that an investment property should be based on what the market wants, not personal preference, which shaped her decision to buy at Pinetree Hill where proximity to schools, tenant demand and longer-term holding value were the priority.

Another buyer, Ms Hilda Tan, bought her first property at 29 while earning over S$100,000 a year as a business development manager. She paid S$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. By 2023, the rental market was at fever pitch – even tiny rooms in inconvenient locations were seeing rents double overnight. When she ran the numbers, paying a mortgage made far more sense.

After relocating to Hong Kong for work in 2025, she rented the unit out for S$3,200 a month. She noted that the actual returns are moderated by ongoing costs such as maintenance fees and sinking fund contributions – a practical lesson in accounting for the hidden costs of property ownership beyond just the mortgage.

Joint purchase arrangements are becoming more common as younger buyers pool resources to enter the private property market early. One buyer in the article bought a resale EC in Yishun with her partner in 2022 for S$1.1 million. But when the relationship ended, she decided to buy over her partner’s share – taking on the mortgage alone and facing a fresh four-year lock-in period before she can sell.

Market observers say 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. Changes in life stages can further complicate matters, with later marriage potentially triggering additional stamp duties when purchasing another home.

Those who sell may also face a 15-month wait before purchasing a resale HDB flat or up to 30 months before applying for a Build-To-Order flat, adding practical constraints to exit timing.

Despite the bullish lending data, bankers urge caution. UOB advises that property is a relatively illiquid asset and a long-term financial commitment. Buyers should take a measured view, factor in the full costs of ownership, and consider how interest rate changes could affect monthly repayments over time.

OCBC recommends that investors should not rely solely on rental income. 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.

Industry experts note that elevated prices have also accelerated inter-generational support, with some parents stepping in to help with upfront costs. While this broadens access to the market, it also means that some young buyers may be taking on commitments that depend on family financial backing rather than their own income trajectory alone.