Your search results

Freehold Properties vs Leasehold Properties: Which is Better?

Posted by Jayson Ang on June 26, 2023

| 0

TLDR

When it comes to property investments in Singapore, understanding the differences between leasehold and freehold properties is crucial. This article emphasizes the benefits of owning a freehold property over a leasehold one, highlighting the advantages of perpetual ownership, higher resale value, and fewer restrictions on loans and CPF usage. While leasehold properties are not necessarily bad investments, freehold properties are considered better investments in today’s market due to their long-term value retention and flexibility. Conducting thorough research before making a purchase is essential for any property investment decision.

In Singapore, where property is a hot topic, it is common to discuss the differences between leasehold and freehold properties.

In this article, we will explore the advantages of owning a freehold property over a leasehold one. It is worth noting that while we highlight the benefits of freehold properties, we do not intend to offend or discredit leasehold properties. Rather, we seek to share our opinion on why we believe freehold properties are a better investment in today’s market.

One of my client grew up in a 99-year leasehold cluster house that his father had bought in 1981. He had fond memories of walking around the estate with his father, who often regretted not investing in multiple freehold properties during the 80s and 90s when he was offered a massive discount. He sold his 1981 property for $1.15 million in 2017, and the highest translated price for it is $1.46 million in late 2021. While this may seem like a good price for a 2,000 square feet property, there is an issue with this property – it is old and may not retain its value in the future.

He was not concerned about the tenure of properties. He believed that a 99-year leasehold property could still hold its value. However, he soon realized that older leasehold properties have limitations to loans and CPF usage. For example, for properties with less than 30 years of lease remaining, no CPF can be used to buy a property.

In today’s market, where there is a shortage of land and an increasing population, freehold properties are becoming more valuable. A freehold property gives the owner perpetual ownership of the land and the building on it. This means that the owner has complete control over the property and can renovate, expand, or sell it at any time.

A freehold property also has higher resale value than a leasehold property. This is because buyers are willing to pay a premium for a property that they can pass down to their children and grandchildren. Moreover, a freehold property does not have the same restrictions as a leasehold property when it comes to loans and CPF usage.

In conclusion, while leasehold properties are not necessarily bad investments, freehold properties are better investments in today’s market. With a freehold property, the owner has complete control over the property and can sell it for a higher price in the future. However, as with any investment, it is important to conduct thorough research before making a purchase.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Blog Posts Buying Tips

Discover the Benefits of a SORA Home Loan in 2023: Why Consider SORA Interest Rates

Jayson Ang – May 17, 2023 –

TLDR The article discusses the transition from SIBOR and SOR to SORA as the new benchmark rate in Singapore's banking...

All Buying Tips Opinion

A Potential Game-Changer: Singapore’s Proposed Minimum Transaction Rule for Property Agents in 2025

Jayson Ang – July 20, 2026 –

TLDR In Singapore’s real estate market, experience alone no longer guarantees an agent’s competence. Many agents maintain licenses without significant...

Mandarin Top 5

5 Factors : Why Singapore’s Property Market Is Still A Safe Haven For Investors

Jayson Ang – May 22, 2024 –

Real estate investment has always been a popular choice for investors looking to generate passive income and build long-term wealth....

Mandarin Top 5

Top 5 Factors : Why Now Is the Perfect Time to Invest in Singapore’s Real Estate Market – Insider Analysis!

Jayson Ang – March 15, 2025 –

Singapore's real estate market has always been an attractive investment destination for both local and international investors. The city-state's stable...

Mandarin Top 5

Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise

Jayson Ang – June 21, 2025 –

TLDR Singapore stands out as a top destination for culture lovers, offering a rich blend of heritage and modernity through...

Mandarin Top 5

Top 5 : Best Karting Circuits in Singapore

Jayson Ang – December 21, 2024 –

Singapore, a bustling city-state known for its modern architecture, cleanliness, and vibrant culture, is also home to a thriving karting...

Mandarin Top 5

5 Factors : Why Singapore’s Prime District Properties Are Still In Demand

Jayson Ang – July 14, 2024 –

Singapore's prime district properties continue to be in high demand due to a combination of factors that make them attractive...

All

URA 2025 Draft Master Plan: 6 Under The Radar Changes You May Have Missed

Jayson Ang – April 12, 2026 –

TLDR The URA 2025 Draft Master Plan outlines major developments in Singapore over the next 10-15 years, with 80,000 new...

Mandarin Top 5

Singapore’s Urban Landscape Transformation: 5 Key Things You Need to Know

Jayson Ang – March 17, 2024 –

Singapore's urban landscape has undergone significant changes over the years, with the city constantly evolving to create a sustainable and...

Mandarin Top 5

5 Factors : Why Singapore’s Property Market Is A Good Hedge Against Inflation

Jayson Ang – May 26, 2024 –

As inflation becomes a growing concern for investors worldwide, the stability of Singapore's property market has become an attractive option...

All Opinion

The Johor-Singapore Special Economic Zone: A New Chapter, Not Just “Iskandar 2.0”

Jayson Ang – April 26, 2026 –

TLDR The Johor-Singapore Special Economic Zone (JS-SEZ), launched in January 2025, is a bilateral effort aimed at sustainable economic growth...

All Blog Posts Buying Tips

Buying a Second Property – 3 Key Factors to Consider

Jayson Ang – June 18, 2023 –

TLDR When navigating the complexities of purchasing a second property in Singapore, ensure you meet eligibility criteria, consider affordability factors...

All Blog Posts Buying Tips

Explore the Benefits and Drawbacks of Holding an Open House!

Jayson Ang – June 3, 2023 –

TLDR An open house is a valuable opportunity for sellers to showcase their home to potential buyers without pressure. It...

All Buying Tips Opinion

What Is The Best Location To Purchase A House To Ensure Your Child Has The Highest Probability Of Attending A Well-Renowned Primary School?

Jayson Ang – October 25, 2023 –

TLDR Parents often seek homes within 1km of desired primary schools to increase enrollment chances. Consider oversubscription rates and population...

All Blog Posts Buying Tips

Beware! Spot These Warning Signs Before Making a Home Purchase!

Jayson Ang – December 21, 2022 –

TLDR When purchasing a property in Singapore, it is crucial to thoroughly assess various aspects of the home to avoid...

All Buying Tips Opinion Reports

Are Million-Dollar HDB Landed Homes Still Worth A Look In 2025 Despite Their Age?

Jayson Ang – October 5, 2025 –

TLDR Old HDB landed homes, like those in Whampoa, are rare and now fetch over $1.5 million, but their value...

Mandarin Top 5

5 Resources That Can Help You Find Your Dream Home In Singapore

Jayson Ang – March 12, 2024 –

It's 五新房产, Finding your dream home can be a daunting task, but with the right resources, it can be a...

All Opinion

Is Land in Singapore Becoming Too Expensive? Unpacking the Developers’ Reluctance

Jayson Ang – September 16, 2026 –

TLDR Singapore’s escalating land costs are reshaping developer strategies and the property market. With government land sales commanding record prices...