Why young Asians are choosing singlehood and reshaping real estate trends

Marriage is out, and singlehood is in as economically squeezed young Asians subvert convention and explore alternative paths in real estate

The age-old edict of “go forth and multiply” is resonating less and less with younger generations.

According to the United Nations, women are having one fewer child than they did in 1990. The University of Washington’s Institute for Health Metrics and Evaluation also predicted this year that 97 percent of countries would fall below the replacement fertility rate by 2050.

Single-person households comprised the fastest-growing household type globally from 2010 to 2019, with nearly half of this growth concentrated in Asia Pacific, according to Euromonitor International.

South Korea’s fertility rate has dipped below 1.3 for two decades, the longest stretch among OECD countries. As of 2023, nearly 42 percent of South Koreans lived alone, giving rise to the term bihon, the choice to forego marriage.

Japan, meanwhile, has the dubious honour of having the world’s oldest society. It is plagued by ills such as hikikomori (extreme social withdrawal) and kodokushi (lonely deaths), which raises concern among landlords.

In 2023, Singapore’s fertility rate dropped to 0.97, marking the first time it has fallen below 1. Whereas housing units once accommodated three to five people, family sizes in the city-state are now even smaller, according to Dr Nai Jia Lee, head of real estate intelligence, data, and software solutions at PropertyGuru Group.

“Low fertility is associated with the financial costs of child-raising, pressures to be an excellent parent, or difficulties managing work and family commitments,” he says. “Uncertain economic conditions and climate change probably also lead to a shift to smaller household sizes and increase in number of singles.”

Spread by economic pressures, an “epidemic of despair” has dissuaded many from procreating, according to recent research by neuroscientists at the University of Pennsylvania.

Following the COVID-19 pandemic, movements like tang ping or “lying flat” gained traction, forcing China’s youth to reassess life choices amid disillusionment with employment.

In 2021, China recorded 239 million single people over the age of 15. A year earlier, the average age of marriage had risen to 28.67, compared to 24.89 in 2010, prompting President Xi Jinping to advocate for a “new culture of marriage and childbearing” in yet another step away from the one-child policy.

The high costs of living in urban centres, including rent, utilities, and daily expenses, can strain finances, making it challenging to save for a home

“Traditionally, marriage in China was viewed as a social obligation, but contemporary attitudes now prioritise personal happiness and compatibility,” says James Woo, co-head of valuation for China at Colliers.

The prospect of homeownership, let alone childbirth, can feel unattainable in China where the residential price-toincome ratio stands at 29.59.

“The high costs of living in urban centres, including rent, utilities, and daily expenses, can strain finances, making it challenging to save for a home,” says Woo. “Many young professionals face job instability, making it harder to commit to long-term financial obligations like a mortgage.”

Housing costs also deter childbearing in Seoul where jeonse (rental deposit) can cost around KRW423 million (USD309,000). This year, South Korea invited overseas Filipino workers in a pilot program to assist with childcare, promoting procreation to locals, but the results have been mixed so far.

Although the Philippines tops Southeast Asia in the number of singles, around 64 percent of its populace are aged 15 to 64, placing it in a demographic “sweet spot.”

Developers are cashing in on this young, millennial, Gen Z-dominated workforce,” says Joey Roi Bondoc, associate director of research at Colliers Philippines. “They’re banking on the potential of their salaries to increase in the years to come. If they receive greater wages, they’ll have greater capacity to purchase residential units.”

Singledom will likely marshal demand for more affordable residential products, compelling developers to rethink their portfolios in favour of smaller cuts. In markets like metropolitan Manila, where unsold ready-for-occupancy units have numbered around 21,000, singles offer developers an opportunity to clear their lower mid-income inventories.

“It makes sense right now for developers to aggressively capture demand from the singles, from the young workers, especially because these are projects that will likely cater to them, given their income levels at this point,” says Bondoc.

Similar shifts are occurring in neighbouring Indonesia, Southeast Asia’s most populous country, where around 128,000 fewer people married from 2022 to 2023.

“Over time, this trend may lead to a structural shift in the housing market with a reduced focus on large family homes,” says Vivin Harsanto, head of advisory at JLL Indonesia. “Developers and policymakers may need to innovate further to meet the unique needs of this demographic, potentially leading to new property types and ownership models.”

Taking such an innovative approach, Singapore has experimented with co-living models for independent seniors. Earlier this year, the Housing & Development Board (HDB) launched its first tender for “silver co-living proposals” to support elders living alone.

Similarly, developers in China have redirected their focus on shared housing models and rentals, especially those featuring multi-functional living spaces, instead of family-oriented abodes.

“If the trend continues, we may see a stabilisation or even a decrease in property prices in certain segments of the market, especially where demand for larger homes declines,” says Woo.

Singlehood may also foment the rise of self-contained townships and mixed-use, master-planned communities, with spaces tailored to the unmarried. “Urban areas may see densification as more singles opt for city living with enhanced services and amenities,” says Harsanto.

Despite individualism gaining currency across Asia, obligations towards family still weigh heavily on singles. Some men in China reportedly linger in rural “bachelor villages” while in Singapore, some singles bypass the HDB’s offerings for pricier private homes, all to be near ageing elders.

“The lack of new flats near their parents often nudges them to the resale of the private market,” says Dr Nai Jia. “It is also interesting to note that the factor that influences their decision includes future capital gains.”

Taking care of parents can compete with time and resources needed for having children, compounding the decline in birthrates, he adds.

From 20th-century fears of overpopulation to today’s pronatalism, the discourse on reproduction has evolved, but those earlier concerns were not unwarranted. A Lancet study suggests that if the global population decreases to 7.1 billion by 2100, carbon emissions could drop by 41 percent.

While inducing procreation is problematic, especially on a boiling planet, the reverse is equally concerning. A shrinking workforce can undermine the global economy.

“To be honest, most countries try to solve this problem through migration,” says Dr. Nai Jia. “It is an inevitable journey that all countries will go through.”

Amid heated debates on migration, one voice risks getting lost in the noise: that of childbearers. As nations grow wealthier and access to contraception widens, women choose to have fewer children, making them vital to economies with labour shortages.

“As more women enter the workforce and attain higher education, they gain financial independence, leading them to prioritise personal and professional development over traditional roles as wives and mothers,” says Woo.

New norms and mores will undoubtedly emerge with the growing acceptance of childlessness, supplanting conventional concepts of domesticity. Future generations, regardless of gender, will then have to decide whether homeownership is still worth pursuing.

“My advice to singles is to think about their main motivation for purchasing residential property and untangle all the secondary objectives,” says Dr Nai Jia.

This article was originally published on asiarealestatesummit.com. Write to our editors at [email protected].