Growing 50-plus affluent population to increase demand for smaller homes

Data from Savills showed that 47% of SG’s affluent population will be aged 50 and above by 2023.

With almost half (47%) of the affluent individuals in Singapore hitting the age of 50 and above by 2023, Savills has urged developers to consider building smaller homes and apartments.

“With an ageing population, Singapore residents are likely to downsize from more expensive
or larger homes. They are looking to reduce their effort expended to maintain the homes as well,” Alan Cheong, executive director of Research & Consultancy, Savills Singapore, said.

“A larger home requires not only much greater individual effort by the elderly, but it also increases the risks of accidents as their ambulatory coordination skills weaken over time,” he added.

Savills underscored that developers building smaller homes for the older affluent population does not mean that younger buyers will be crowded out by the smaller units.

“The unit mix in a medium to large sized non-landed development has a varied choice of apartment types and sizes to cater to various age groups and family sizes,” Savills said.