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Singapore's Prime Minister's Office (PMO) revealed on Friday (Sep 29) that Singapore's total population as at June 2023 is standing at 5.92 million people - an increase of 5 per cent from the year before (see below graph).
This is the highest recorded figure in Singapore's history as the figures were published in the annual Population in Brief report by the National Population and Talent Division, Prime Minister's Office.
Last year in 2022, the total population rose for the first time since the Covid-19 pandemic hit, to around 5.638 million. The publication by the National Population and Talent Division and partner agencies said: “Taking into account the decline in total population in 2020 and 2021 amid the Covid-19 pandemic, the average total population growth rate over the past five years was comparable to the preceding five-year period.”
This is the highest recorded figure in Singapore's history as the figures were published in the annual Population in Brief report by the National Population and Talent Division, Prime Minister's Office.
Last year in 2022, the total population rose for the first time since the Covid-19 pandemic hit, to around 5.638 million. The publication by the National Population and Talent Division and partner agencies said: “Taking into account the decline in total population in 2020 and 2021 amid the Covid-19 pandemic, the average total population growth rate over the past five years was comparable to the preceding five-year period.”
Total Population in Singapore, as at June 2023
Total Population by residency status in Singapore, as of June 2023
The citizen and Permanent Resident (PR) populations increased by 1.6 per cent (3.55 million to 3.61 million) and 3.7 per cent (0.52 million to 0.54 million) respectively between June 2022 and June 2023 (see above graph). With the easing of travel restrictions related to COVID-19, more citizens and PRs living overseas returned to Singapore, and this was the largest contributing factor to the increases in the citizen and PR populations.
As at June 2023, the non-resident population stood at 1.77 million, an increase of 13.1 per cent from June 2022. The increase in the non-resident population was mainly due to foreign employment growth in Singapore from June 2022 to June 2023 (see below graph). The increase was seen across all pass types, and the largest increase came from Work Permit Holders in the Construction, Marine Shipyard, and Process sectors, as contractors hired more workers to catch up on projects that were delayed by COVID-19. The remaining increases in foreign employment were spread across sectors as firms backfilled positions vacated by non-residents during the pandemic.
Foreign Employment Growth in Singapore, as at June 2023
The proportion of our citizen population aged 65 years and above is rising, and at a faster pace compared to the last decade. Large cohorts of “baby boomers” have begun entering the post-65 age range (see below graph).
Citizen population by broad age groups in Singapore, as at June 2023
Citizen population by broad age bands in Singapore, as at June*
Currently, 61.0 per cent of citizens are aged 20-64 years. This proportion has decreased from 64.9 per cent in 2013. Conversely, the proportion of citizens aged 65 and above has increased from 11.7 per cent in 2013 to 19.1 per cent in 2023. By 2030, around 1 in 4 citizens (24.1 per cent) will be aged 65 & above (see graph above).
In 2022, there were 24,767 citizen marriages, 5.7 per cent more than the 23,433 citizen marriages in 2021 (see graph below). The number of citizen marriages increased for the second consecutive year since 2020. The increase could have been contributed by couples resuming their marriage plans after disruptions caused by the COVID-19 pandemic. However, the annual average number of citizen marriages in the last five years (22,700) remained lower than that in the preceding five years (23,600).
Citizen marriages in Singapore, 2012 - 2022
Citizen births in Singapore from 2012 - 2022
There were 30,429 citizen births in 2022, 4 per cent fewer than the 31,713 citizen births in 2021 (see above graph). The annual average number of births in the last five years (31,800) was also lower than that in the preceding five years (32,700).
These figures and graphs above are extracted from the annual Population in Brief 2023 publication, which provides key updates and trends on Singapore’s population.
"This 2023 population figure exceeded analysts projection in 2022 where they projected Singapore's population to trend around 5.7 million in 2024 and 5.8 million in 2025, according to sophisticated econometric models" said real estate professional Kiwi Lim.
"Moving forward, this may put additional pressure on the housing market as the demand for residential homes may increase due to a faster population growth."
Kiwi Lim also believe that a larger population can also lead to the formation of a critical mass. Critical mass refers to a point at which a specific quantity or size of something is necessary to trigger a particular action, event, or phenomenon.
How does a larger population relate to the concept of critical mass in economics?
- Economic Activity: In the context of economics, a larger population can create a critical mass of consumers. When there are enough consumers in a market, businesses are incentivized to enter that market, leading to increased economic activity, competition, and potentially greater innovation.
- Infrastructure Development: A growing population can prompt the development of critical mass in infrastructure projects. For example, the construction of a new public transportation system may become financially viable when there's a sufficient population to support its use.
- Social Movements: In social and political contexts, a larger population can provide the critical mass needed for social movements or political revolutions. When a significant portion of the population supports a cause, it becomes more likely to effect change.
- Technological Adoption: In the tech industry, a larger user base can create a critical mass for the adoption of new technologies or platforms. For instance, social media platforms become more useful and engaging as more people join and use them.
- Cultural Impact: In cultural terms, a larger population can influence the critical mass of cultural trends or shifts. When a particular idea or trend gains enough popularity within a population, it can lead to cultural change.
- Resource Allocation: In resource management, a larger population may necessitate the allocation of resources to meet basic needs. A critical mass of people needing access to food, water, healthcare, or education can drive policies and initiatives to address these needs.
- Market Demand: In business, a larger population can lead to a critical mass of demand for specific products or services. Companies may invest in production and marketing to cater to this larger customer base.
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Image from Straits Trading website
Straits Developments, a subsidiary of conglomerate The Straits Trading Company launched two new property investment products on 10 September 2023 to allow its eligible shareholders to own shares in two high-end Singapore residential properties in its real estate portfolio under its fractionalised investment real estate platform: FIR-ST.
Eric Teng, group COO and CEO of Straits Developments Pte Ltd, says, "FIR-ST is a unique investment product that offers diversification for investors who wish to gain exposure to Singapore residential real estate in bite-sized fractions."
According to Straits Trading, their FIR-ST asset fractionalisation offer investors exposure to a condominium unit in Duchess Residences - a 999-year leasehold development located at 108 Duchess Avenue in Bukit Timah as well as a freehold good class bungalow (GCB) located at 8A Cable Road, Chatsworth Park.
Both properties are offered to Strait Trading Shareholders’ Club registrants only. Shareholders who hold at least 100 shares of Straits Trading can register with the Shareholders’ Club. Registration is free and voluntary for all shareholders. SDPL believes FIR-ST offers advantages over other property-based asset classes because it improves accessibility to high value properties that have high barriers to entry. Moreover, FIR-ST provides exposure to property investment without the hassles associated with property ownership as a Straits Trading unit will be responsible for the administrative work and maintenance of the properties.
What is Asset Fractionalisation?
Asset Fractionalisation process involves dividing the properties into fractions, allowing investors to buy and own a portion of each property at a fraction of their value. Each investor will get a share - or a fraction of the rental income from the underlying property and enjoy any dividends generated by that property, giving them exposure to exclusive GCB and high-quality condominium located in District 10 allowing them a share in the potential appreciation of underlying property.
The innovative investment products offer its Shareholders’ Club registrants, preference shareholder investors exposure to high-quality and exclusive Singapore residential properties at a fraction of its value through preference shares to receive dividends, which will be paid on a semi-annual basis. During the investment period, the underlying properties continue to be owned by the existing owners while investors enjoy a share of the economic returns. At the end of the expected investment period of 5 years, the preference shareholders may enjoy returns which reflect a share in the potential appreciation in value of the underlying property via a special payout. The dividends and special payout are non-guaranteed and subject to the performance.
What properties can investors choose under FIR-ST?
FIR-ST is a unique investment product that offers diversification for investors who wish to gain exposure to Singapore residential real estate in bite-sized fractions.
The first underlying property is a 999 year leasehold condo unit at Duchess Residences located near prestigious schools, like Nanyang Primary School and Hwa Chong Institution. Developed by Duchess Development Pte Ltd, a subsidiary of City Developments Limited (CDL), Duchess Residences is situated in the prestigious District 10 of Singapore, specifically at 81 Duchess Avenue enjoying a prime location in the Bukit Timah area, known for its upscale living and proximity to various amenities. The minimum investment amount for investors to own a share of Duchess Residences under FIR-ST is S$200,000.
The second underlying property is a freehold Good Class Bungalow (GCB) located at 8A Cable Road, Chatsworth Park. With limited supply of approximately 2,800 plots, GCBs are a niche segment of Singapore’s residential property and only accessible by ultra-high-net-worth investors, but through FIR-ST, investors may gain economic exposure to this asset class at a fraction of the property value. The minimum investment amount is S$500,000.
Real estate professional Kiwi Lim felt this may present itself as an innovative solution to enable property investors to enjoy ownership of high-quality properties without having to fork out hefty Additional Buyer's Stamp Duties (ABSD) while allowing them a share in the potential appreciation of underlying properties where dividends are paid on semi-annual basis over the investment period.
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At this year’s 2023 National Day Rally (NDR), Singapore's Prime Minister Lee Hsien Loong assured Singaporeans that the government will try its best to cushion its people in an environment where rising geo-political tensions and economic uncertainty is threatening Singapore. The United States-China rivalry, the war in Europe, a fraying global economic order and elevated inflation leading to rising living costs are just some issues troubling many countries across the globe and a small country like Singapore will need great political skills to navigate safely through a tumultuous environment.
The Prime Minister also focused on reaffirming the government’s commitment to Singaporeans towards affordable, accessible public housing, the government is consistently studying and updating Singapore's housing framework to better meet the needs of Singaporeans.
Prime Minister Lee Hsien Loong announced at the National Day Rally (NDR) speech that the government will remove the distinction between mature and non-mature Housing and Development Board (HDB) estates from the 2nd half of 2024 next year, replacing it with a new framework of “Prime”, “Plus” and “Standard” flats allowing for greater differentiation in the pricing and resale conditions depending on flat location and demand, with the threefold aim of maintaining affordability, achieving a good social mix and upholding fairness.
The Prime Minister also focused on reaffirming the government’s commitment to Singaporeans towards affordable, accessible public housing, the government is consistently studying and updating Singapore's housing framework to better meet the needs of Singaporeans.
Prime Minister Lee Hsien Loong announced at the National Day Rally (NDR) speech that the government will remove the distinction between mature and non-mature Housing and Development Board (HDB) estates from the 2nd half of 2024 next year, replacing it with a new framework of “Prime”, “Plus” and “Standard” flats allowing for greater differentiation in the pricing and resale conditions depending on flat location and demand, with the threefold aim of maintaining affordability, achieving a good social mix and upholding fairness.
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In Singapore, both singles and unwed single parents have housing options provided by the Housing and Development Board (HDB), but there are some differences in eligibility and the specific schemes available to them:
- Singles: Singles who are at least 35 years old can apply for HDB flats under the Single Singapore Citizen Scheme or the Joint Singles Scheme. Under the Single Singapore Citizen Scheme, eligible singles can purchase a new or resale HDB flat. Under the Joint Singles Scheme, two singles who are at least 35 years old and are listed as co-applicants can jointly apply for a new or resale flat.
- Unwed Single Parents: Unwed single parents are also eligible for HDB flats, but they have a separate scheme called the Public Scheme for Singles (with dependents). Under this scheme, unwed single parents with at least one child who are Singapore Citizens can apply for a new or resale HDB flat. Eligible unwed single parents can apply for a 2-room Flexi flat or a 3-room flat.
Over the decades, the rules for singles purchasing HDB flats have changed progressively with the government raising housing grants and increasing access to more flat types for singles. Initially, singles were not allowed to buy public flats when HDB's home ownership scheme was introduced in the 1960s. This has changed over the years where eligible unmarried Singaporeans are able to buy a resale flat under the Single Singapore Citizen Scheme that was introduced in 1991 allowing singles aged 35 and above to buy from a limited pool of smaller flats from the resale market.
At the National Day Rally 2023 on Sunday, Prime Minister Lee Hsien Loong announced changes to housing policies that will allow singles to have more housing choices.
Singles will be able to buy new two-room flats across all three housing types
From 2nd half of next year, eligible singles will be able to apply for a two-room Flexi flat in all locations across “Prime”, “Plus” and “Standard” flats instead of the current restriction which means they can purchase only from non-mature estates.
Singles will also be able to buy resale flats across all three categories, though their choice of prime units will again be restricted to two-room flats. They will also be able to buy a Standard or Plus flat of any size, or buy a two-room Prime flat from the resale market.
Unwed single parents can apply for BTO flats in matured estates
Unwed single parents over the age of 21 who previously can only buy a 3-room BTO flat in non-mature estates can now also expect to apply for BTO flats in matured estates with the abolishment of the classification between mature and non-mature estates.
"I believe this is great news for unwed single parents who desire to apply for 3-room BTO flats in matured estates to live near their parents so that their parents can conveniently visit to help take care of their children" said real estate professional Kiwi Lim
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Factors contributing to Singapore's property market
Singapore's property market is always known around the world for its resilience and stability, with the city-state often exhibiting robust performance on a land-scarce island. Kiwi Lim believe several factors contributed to this phenomenon:
- Limited Supply of Land: Singapore's small land area and strict land-use planning policies have limited the availability of new land for development. This scarcity of land inadvertently create a sustained demand for property.
- Strong Economic Fundamentals: Singapore has a strong and diversified economy with a stable political environment attracting both local and foreign investors, as well as high quality expatriates from MNCs, driving demand for residential and commercial properties.
- Government Policies: The Singaporean government has implemented various housing policies to manage and cool down the property market, with more than ten cooling measures already implemented to prevent property bubbles from forming while managing the nation's strong desire of home ownership.
- Foreign Investment: Singapore is an attractive destination for foreign investors due to its status as a global financial hub. Foreign investment in property, especially luxury real estate, has played a role in sustaining the market.
- Rental Market: The rental market in Singapore, driven by expatriate demand often remains strong which appeal to property investors looking for good rental income.
- Infrastructure Development: Ongoing infrastructure projects, such as transportation improvements and urban redevelopment consistently contribute to the overall attractiveness of different regions within Singapore.
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