THIS WEEK’S TOPIC: From a financial standpoint, should millennials (and Gen Z) in Singapore buy or rent their home?
I have had several conversations with millennials and Gen Z around this issue, and from what I gather, many end up renting because of a push/pull factor.
Cost is the push factor. Based on recent November prices on HDB’s website, a 4-room Build-To-Order flat in Kallang/Whampoa area would set you back about S$466,000, including grants. If it were a resale unit, the price range would be S$630,000 to S$754,000. Those who are starting out in their careers would find these prices challenging and hence end up renting instead.
Next, the pull factor. There is a growing group of financially savvy millennials and Gen Z who might have the means to buy their own home, but choose to deploy their cash in other assets like stocks, currencies, crypto and non-fungible tokens, instead. They do so because they know that these assets would give them a better return for their money compared to tying it up in a home, and end up renting as well.
Mario Singh
Chief Executive Officer
Fullerton Markets
