Your search results

Top 5 : Reasons why Freehold Properties Cost More in Singapore

Posted by Jayson Ang on February 21, 2025

| 0

Freehold properties, a term often heard in the real estate market, are properties that are “free from hold” of any entity other than the owner. This means that the owner enjoys complete ownership for perpetuity and can use the land for any purposes, as long as it is in accordance with local regulations. In Singapore, freehold properties are highly sought after due to their perceived value and the freedom they offer. However, these properties come with a higher price tag.

Here are the top five reasons why freehold properties cost more in Singapore.

1. Perpetual Ownership:

The most significant advantage of owning a freehold property is the perpetual ownership it offers. Unlike leasehold properties, which have a fixed term of ownership, freehold properties can be owned indefinitely. This means that they can be passed down to future generations, adding to their appeal and consequently, their cost.

2. Freedom and Flexibility:

Freehold properties provide owners with more freedom and flexibility compared to leasehold properties. Owners have complete control over their property and can use it for any purpose that complies with local regulations. This level of freedom and control is a luxury that many are willing to pay a premium for.

3. Lower Risk of Government Acquisition:

In Singapore, freehold properties cannot be taken back by the government, unlike leasehold properties. This lower risk of acquisition adds to the allure of freehold properties and contributes to their higher cost.

4. High Capital Investment:

Purchasing a freehold property requires a high capital investment. The average price for islandwide freehold condominiums in Singapore is $2,031 per square foot, which is 16.2% higher than 99-year leasehold condominiums. This high initial cost is a significant factor in the overall higher cost of freehold properties.

5. Maintenance and Repair Responsibilities:

As a freeholder, you are responsible for all repairs and maintenance of the property. While this may seem like a disadvantage, it also means that you have complete control over the upkeep of your property, which can be seen as a benefit by some and thus, adds to the cost.

While freehold properties in Singapore come with a higher price tag, the benefits they offer such as perpetual ownership, more freedom and flexibility, lower risk of government acquisition, and complete control over maintenance and repairs make them a worthwhile investment for many. However, potential buyers should carefully consider these factors and their financial capability before deciding to invest in a freehold property.

If you would like to arrange a viewing appointment with us in Singapore, do send us a DM here

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 …

Mandarin Top 5

Top 5 Places to Watch Fireworks in Singapore

Jayson Ang – August 3, 2024 –

Singapore is known for its stunning skyline and vibrant celebrations, especially during events like National Day and New Year's Eve....

Mandarin Top 5

The Future Of Singapore Property Investing: 5 Trends To Watch Out For

Jayson Ang – July 10, 2024 –

The future of Singapore's property market is shaped by several emerging trends that reflect cautious optimism, enviable locations, and sociable...

All Buying Tips Opinion

Neighbourhood Estate Guide: Is Holland Village the Most Charming and Relaxed of HDB Estates?

Jayson Ang – January 1, 2025 –

According to the 2014 master plan, Holland Village was given the prestigious title of an "identity node," confirming its status...

All Reports

Transaction Volumes Remained Subdued Due To The Dearth Of Inventory In Q4 2022

Jayson Ang – March 27, 2023 –

TLDR The Urban Redevelopment Authority (URA) Flash Estimates for Q4 2022 show a 0.1% increase in non-landed private home prices...

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 Blog Posts Buying Tips

Planning for Retirement: Considerations for Downsizing Your Property

Jayson Ang – February 19, 2023 –

TLDR Downsizing your home for retirement can bring financial security, closer family ties, and new adventures. Consider the benefits of...

All Buying Tips

Is 2024 the Perfect Moment to Refinance Your Home Loan? Discover What Homeowners Should Consider!

Jayson Ang – July 20, 2024 –

TLDR The article covers the shift to SORA for home loan rates, urging consideration of refinancing options amidst rising rates....

All Buying Tips

The Changing Faces of Orchard Road

Jayson Ang – October 10, 2024 –

Should You Buy, Sell or Wait? If you're reading this, you must be trying to figure out the best course...

All Blog Posts Buying Tips

The Advantages and Disadvantages of Purchasing an Auction Property in Singapore

Jayson Ang – January 13, 2023 –

TLDR When considering purchasing a property through auction in Singapore, remember that you can potentially get a great deal below...

Mandarin Top 5

Top 5 Best Non-Touristy Things to Do in Singapore

Jayson Ang – October 31, 2024 –

Singapore, a vibrant city-state known for its iconic skyline and diverse culture, offers a plethora of experiences for both tourists...

All Buying Tips Opinion

Are Early Bird Discounts At New Launches Genuine Or A Marketing Gimmick?

Jayson Ang – November 20, 2023 –

TLDR When considering investing in new property projects, understanding developers' pricing strategies is crucial. Early bird discounts are not just...

All Blog Posts Opinion Selling Tips

When Should You Consider Lowering the Price of Your Property That Has Been on the Market for Months?

Jayson Ang – December 3, 2024 –

TLDR Selling a property can be challenging without the right price strategy. Adjust your asking price to attract more buyers...

All Opinion

How Budget 2024 Impacts Singapore Homeowners: Exciting Property Tax Updates and ABSD Benefits

Jayson Ang – June 16, 2024 –

TLDR The 2024 Budget introduces changes to property tax bands, aiming to ensure fair taxation based on Annual Value (AV)...

All Buying Tips

44 Exciting New Condo Launches in 2024 Starting at $1,402!

Jayson Ang – June 4, 2024 –

Alright, let's talk about 2024. We're not expecting the same kind of shortages we've seen after COVID-19. Some folks are...

All Buying Tips Opinion

7 Frequently Overlooked Questions That New Condo Buyers Should Ask At The Showflat To Avoid Any Regrets In The Future!

Jayson Ang – January 29, 2024 –

TLDR Newly launched condominium buyers face uncertainties about price changes, proximity to schools, construction methods, maintenance costs, elevator availability, commercial...

Mandarin Top 5

5 Reasons : Why Investing In Conservation Shophouses In Singapore Can Be A Unique Opportunity

Jayson Ang – June 14, 2024 –

Conservation shophouses are a unique and valuable investment opportunity in Singapore. These historic buildings are a key part of the...

All Blog Posts Opinion

Invest During the Bearish & Exit During the Bullish

Jayson Ang – December 27, 2022 –

TLDR A comprehensive overview of the real estate market trends, emphasizing the importance of strategic property analysis and investment decisions....