Why renting is better than buying in Singapore for many today

In Singapore, home ownership has long been considered a sign of success, stability, and financial prudence. But that default is now under quiet reconsideration. With property prices hitting new highs and social norms evolving, a growing segment of Singaporeans—especially younger professionals—are choosing to rent. This shift is more than personal preference. It reflects structural changes in affordability, access, and the opportunity cost of tying up capital in property. While renting used to be seen as a stopgap before buying, it is increasingly being viewed as a legitimate long-term strategy.

Let’s examine the practical and policy-based reasons why renting may now make more sense than owning for many in Singapore.

For workers in fast-moving industries or those facing regular job rotations, renting enables a more agile response to life’s changes. Relocating for work or personal reasons becomes significantly easier when you’re not encumbered by the logistics and fees of selling a home. This is especially relevant in a city-state where commutes can still eat up time despite the country’s compact size. Renting closer to work—whether that’s in the CBD or Jurong Innovation District—can immediately improve quality of life and reduce transport costs.

For dual-income households or couples deciding whether to cohabit, renting first allows for test-run flexibility. This flexibility can be critical for managing financial risk in the face of relationship or employment uncertainty.

Buying a property in Singapore involves a heavy upfront cost: a 25% down payment for private property (5% cash, 20% CPF/cash), stamp duties, and loan eligibility based on the Total Debt Servicing Ratio (TDSR). For many young singles or unmarried couples, especially those under 35, access to affordable HDB housing remains restricted.

According to PropertyGuru’s Singapore Consumer Sentiment Study (H2 2022), nearly half of 22- to 29-year-olds indicated they were renting because they lacked sufficient savings for a property purchase. Others were ineligible due to current HDB ownership rules, which prioritize families and exclude most singles below the age of 35.

Renting, by contrast, requires far less upfront capital. Security deposits and a few months’ rent are all that’s needed. This preserves cash flow, allowing individuals to allocate funds to entrepreneurship, professional development, or family obligations—areas that may yield better returns than property appreciation in the near term.

One hidden cost of home ownership is the long-term maintenance burden. Even new properties require repairs within five years—air-con servicing, water heaters, plumbing, or electrical rewiring. Renovations, which are practically expected in the private market, can run into tens of thousands. Older HDB units, particularly those past their 40th year, may be cheaper upfront but come with renovation risks and lease decay uncertainty. HDB flats are sold on 99-year leases, and buyers of flats with remaining leases under 60 years may face CPF usage restrictions.

Renters are shielded from most of these worries. Major maintenance is typically borne by the landlord. Property depreciation also becomes someone else’s problem. This not only reduces financial uncertainty but simplifies budgeting—especially for those who prize liquidity and minimal mental overhead.

While home ownership in mature estates like Tiong Bahru or Holland Village can be prohibitively expensive, renting opens doors. Many young professionals can live near the CBD, MRT interchanges, or lifestyle hubs without the financial anchor of a million-dollar mortgage.

This proximity is more than aesthetic. It supports productivity, social mobility, and access to networking opportunities. In industries like finance, tech, or creative media, location still matters. Renting makes it possible to enjoy these advantages without waiting decades to “afford” them via ownership. This is also a key draw for expatriates, PRs, or Singaporeans returning from abroad. Renting allows them to re-enter the housing market without immediately committing to long-term financial instruments.

Today’s young adults in Singapore are not simply reacting to high prices—they’re rethinking what a “good life” looks like. Many value experiences, mobility, and optionality over the traditional path of accumulating physical assets.

Frequent travelers, digital nomads, or those caring for aging parents often prefer to stay flexible. For them, renting supports a lifestyle that accommodates caregiving, global work stints, or multi-city families. These are not short-term sacrifices—they’re choices rooted in values. As housing becomes more expensive and more politicized, the appeal of ownership as a status symbol may also fade. The idea that “you must buy to be secure” is being challenged by a generation aware that liquidity, optionality, and personal agency also define financial wellness.

Singapore’s property market is tightly regulated—but not immune to cycles. Prices are influenced by interest rates, cooling measures, land release schedules, and foreign ownership rules. Recent waves of additional buyer’s stamp duties (ABSD) have disproportionately affected second-time buyers and foreigners. Even owner-occupiers now face more scrutiny over mortgage servicing ratios.

In this context, renting offers insulation from policy shifts. Renters can sidestep questions about when to enter the market, how to hedge mortgage rates, or whether to exit during a downturn. Their housing cost is visible, renegotiable, and generally stable in the short term. For risk-averse households or those unsure of long-term residency plans, this predictability is a feature—not a flaw.

It’s true that homeowners benefit from long-term capital gains, especially in a rising market. Property can also serve as collateral, retirement security, or intergenerational transfer. But these benefits come with tradeoffs. Ownership requires concentration of wealth in a single, illiquid asset. Renters can instead diversify—channeling funds into CPF top-ups, SRS accounts, equity markets, or business ventures.

Moreover, the assumption that all properties appreciate isn’t always true. Lease decay, market cooling measures, and oversupply risks can reduce gains. For some, renting plus investing can generate better adjusted returns than home ownership alone. It depends on the timeline, risk profile, and other life goals—not just asset appreciation.

While renting isn’t ideal for everyone, it can be especially aligned with:

• Younger Singaporeans still accumulating savings, facing HDB eligibility limits, or exploring career options.
• Mid-career expats or PRs who may not qualify for subsidies or wish to avoid ABSD.
• Professionals with mobile or uncertain work arrangements who need to stay nimble.
• Lifestyle-driven individuals who prioritize location, flexibility, or international travel.
• Families in transitional life stages, such as divorce, caregiving, or overseas return.

In the past, renting was seen as temporary, inferior, or wasteful. But that framing no longer fits Singapore’s current cost dynamics, demographic realities, and evolving aspirations. For a growing share of households, renting offers more than just a roof. It provides freedom, clarity, and time—resources that are harder to price than property, but often more valuable.

This doesn’t mean the dream of home ownership is obsolete. But it does mean it’s no longer the only path to housing security or financial wisdom. In today’s market, renting is no longer the fallback. For many, it’s the plan.