How do demographics affect the resale market in 2025?

Demographics are expected to play a significant role in shaping the resale market in Singapore in 2025, driven by several key factors:

Aging Population

The aging population in Singapore will drive demand for senior-friendly housing and retirement communities. With residents aged 65 and above making up 19.9% of the population in 2024 and expected to rise to 24.1% by 2030, there will be a growing need for homes that cater to the specific needs of seniors, such as easy access and safety features. This demographic shift is likely to influence the types of properties that are in demand, with a focus on senior-friendly housing and retirement communities.

Family Growth and Space Needs

Families in Singapore are growing, and this growth is driving the demand for more spacious homes. Landed properties, in particular, have seen a surge in sales, with 1,733 units sold in 2024, up from 1,516 in 2023. District 19 has emerged as a top choice for landed homes due to its established neighborhoods and easy access to amenities. This trend indicates that families are seeking more space and privacy, which will impact the resale market for larger residential units.

Young Professionals and Co-Living

Young professionals and expats are increasingly seeking flexible and affordable living options, leading to a rise in demand for co-living spaces. This demographic is driving the growth of co-living spaces by about 30% in 2023 and 2024, as they value community-oriented living and the flexibility that co-living spaces offer. This trend may influence the resale market by making smaller, more affordable units more attractive.

Local Demand and Upgrading

Strong local demand, particularly from HDB upgraders, is expected to continue in 2025. The price gap between HDB flats and private condos, combined with government policies like increased BTO subsidies, is pushing HDB resale prices higher. This demand from local buyers looking to upgrade will sustain the private resale market, especially for properties that offer more affordable prices and larger living spaces compared to new launches.

In summary, the demographics in Singapore are shaping the resale market by driving demand for specific types of properties, such as senior-friendly housing, larger family homes, and affordable co-living spaces, while also influencing the overall pricing and transaction volumes in the market.