Your search results

Will Property Owners Earn More By Keeping Residential Properties For An Extended Period?

Posted by Jayson Ang on December 6, 2025

| All, Buying Tips, Opinion, Selling Tips

| 0

TLDR

In Singapore, holding a residential property longer typically yields higher profits—averaging $665,000 after 20 years, versus $200,000 for 5–10 years. Most owners sell within 10 years, but freehold and landed homes are kept longer and tend to be more profitable. However, holding an unprofitable property too long can increase losses. Executive condos often deliver strong short-term gains due to government subsidies. The best holding period depends on your goals and risk appetite, balancing profit potential with costs and risks.

Many people believe that keeping a residential property for too long may not be a good financial decision. Once a property reaches around 20 years old, its value might start to drop, possibly leading to losses.

This raises the question of whether there is an ideal time to hold onto residential property investments. Are older properties likely to lose value over time, making owners think about selling them quickly?

To explore these questions, we can examine historical sales data to see how long owning a property affects financial returns. For example, do homeowners or investors make more profit by selling before or after 10 years?

Many home owners sold their properties within 10 years

In this study, we looked at the buying and selling dates of private residential units to see how long they were owned and to calculate the gross gains and losses by comparing new sales data with resale data from the Urban Redevelopment Authority.

The data includes nearly 90,000 matched properties over 30 years from 1995 to June 2024, covering purchases during both financial lows and property highs. Housing Board flats and new homes that were never resold were not included due to insufficient information.

The analysis indicates that many owners sold their properties within the first 10 years. Specifically, 50.8 per cent were resold between five and 10 years after purchase, often new homes sold shortly after receiving the temporary occupation permit (TOP). Another 15.5 per cent were resold within five years, typically before or just after TOP. About a third of owners kept their properties longer before selling: 23.5 per cent were sold after around 10 to less than 15 years, while 6.4 per cent were sold between 15 and less than 20 years. A small group, 3.8 per cent, were resold after 20 years.

Landed and freehold properties are kept longer

Some owners are likely unconcerned about their lease ending and are not eager to sell. Others may keep their properties for better profits, as freehold properties are typically more expensive and rarer.

For example, 35.7% of freehold condo owners kept their properties for at least 10 years before selling, compared to 32.6% of leasehold condo owners. Owners of landed properties tend to hold them for longer. About 43% resold after 10 years, and 7.5% held on for at least 20 years.

The longer the holding period, the higher the gross profits

Selling a property quickly doesn’t always mean you will make a lot of money.

Data shows that property owners who keep their investments for longer tend to earn more, especially with consistent price increases, like in Singapore over the past few decades.

Strong rental growth has also boosted property values, particularly for residential properties. Many older properties were purchased at lower prices, leading to higher profits.

Higher profits have been seen across all types of properties, whether leasehold or freehold.

On average, those who held their properties for 20 years or more made about $665,000 in gross profit. Owners who kept their properties for 15 to 20 years earned around $600,000, while those who held for 10 to 15 years saw profits drop to about $320,000.

In contrast, owners who sold their properties within five to ten years made the least, averaging around $200,000.

Profit margin smaller for quick sales

Some people may be concerned that leasehold condos are less profitable than freehold condos. If the investment is short-term, research shows there is little profit difference. However, for long-term ownership, the profit potential varies greatly.

For instance, the average gross profit of a freehold condo is 17 per cent, or about $27,000 more than a leasehold condo if sold within five years. But after 20 years, the average profit margin increases to 33 per cent, or nearly $200,000. Thus, leasehold condos in Singapore can be profitable and appreciate over time despite their limited leases, while freehold condos generally offer better long-term profitability.

Majority of ECs are resold within 10 years

Intriguingly, a high proportion of executive condo (EC) owners opted to sell their properties relatively quickly. Close to 70 per cent of the EC-matched caveats were resold between five years and 10 years, while slightly less than 10 per cent were retained for at least 15 years.

The rapid turnover of ECs is remarkable but not entirely unexpected. This is because an EC sold within five years of its TOP yielded an average gross profit of about $300,000, which significantly surpassed that of all other property types – such as landed properties (£213,000), leasehold condos (£159,000), and freehold condos (£186,000) – sold within the same timeframe.

The high profits enjoyed by EC owners may be attributed to the significantly lower purchase prices compared with those of private condos, given the substantial subsidies from the government.

Losses can also increase with time

Keeping a property for too long can be risky, as losses often grow over time for unprofitable deals, despite these making up only 17.2% of total transactions.

The average gross loss for properties held for five to less than ten years was about $210,000. For those held between ten and fifteen years, the average gross loss rose to around $250,000, and for properties held for fifteen to twenty years, it increased to an estimated $684,000.

Owners need to evaluate the chances of facing losses and decide if the risk of losses outweighs the potential profits when considering whether to keep the units.

What you should know

Buyers should carefully consider their needs and risk tolerance when deciding how long to keep a property. While holding a property can increase profitability, it can also lead to losses. They must balance potential gains with the costs of maintaining an older property. Investors often use different strategies.

Some prefer to sell properties early for small profits and reinvest the money, rather than waiting for long-term appreciation. Over 20 years, they might complete several property transactions for incremental gains. However, this can involve the hassle of moving and extra costs, like renovations and stamp duties, which can reduce profits.

Other homeowners may choose to keep their homes for sentimental reasons or if they need larger spaces.

A more strategic approach could involve timing the market well, choosing a property with good features, being cautious, and buying within one’s budget. This strategy can improve the chances of making a profit and shortening the investment period, regardless of market conditions.

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

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...

Mandarin Top 5

5 Critical Mistakes to Avoid When Investing in Singapore Property: Insights and Advice from Experts

Jayson Ang – April 1, 2024 –

Investing in Singapore property can be a lucrative venture for investors, but it's important to avoid common mistakes that can...

Mandarin Top 5

Top 5 : What Are The Key Factors That Drive Foreign Investment In Singapore’s Real Estate Market

Jayson Ang – January 2, 2025 –

Singapore, a thriving city-state in Southeast Asia, has become a magnet for foreign investors looking to capitalize on its booming...

Mandarin Top 5

5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made

Jayson Ang – May 10, 2024 –

Investing in property is a great way to build wealth and secure a stable source of passive income. When it...

All Buying Tips

Uncovering Hidden Details: Key Questions to Ask at a New Launch Condo Show Flat

Jayson Ang – January 2, 2026 –

TLDR Show flats can be impressive but may hide important details. Buyers should ask about room sizes, furniture fit, balcony...

Mandarin Top 5

Singapore Property Investing: Is It Better To Flip Or Hold?

Jayson Ang – May 18, 2024 –

Investing in Singapore property can be a profitable venture, but investors must choose the right strategy to maximize their returns....

All Buying Tips Opinion

Planning for a Future Landed Property Purchase After Selling Your BTO: Investment Tips

Jayson Ang – September 2, 2024 –

TLDR Transitioning from a BTO to a landed property necessitates understanding market trends, meticulous financial planning, exploring financing options, enhancing...

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...

Mandarin Top 5

Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?

Jayson Ang – August 25, 2024 –

Singapore, a thriving city-state with a robust economy and a strong demand for real estate, has always been an attractive...

All Buying Tips Opinion

5 Frequently Heard Sales Pitches from Agents Encouraging You to Choose a New Development Instead of a Resale Condo: How Accurate Are They?

Jayson Ang – November 21, 2025 –

TLDR While some agents may discourage resale condos due to personal incentives, the difference in profits between resale and new...

Mandarin Top 5

Navigating the Singapore Property Market as a Foreign Investor: What You Need to Know

Jayson Ang – August 7, 2024 –

Singapore, a thriving hub of business and commerce in Southeast Asia, boasts a highly developed economy and a robust real...

All Buying Tips

Apply Your HDB HFE Letter in 5 Easy Steps: A Simplified Guide for 2023

Jayson Ang – December 18, 2023 –

TLDR The HDB Flat Eligibility (HFE) letter has experienced delays since its introduction alongside the HDB Flat Portal in May...

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...

Mandarin Top 5

Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us!

Jayson Ang – June 2, 2023 –

Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us! Singapore is known for its diverse and delicious...

All Buying Tips Opinion

Why Cash Over Valuation (COV) Doesn’t Matter Anymore

Jayson Ang – September 20, 2025 –

TLDR HDB’s old strategy of hiding Cash Over Valuation (COV) data isn’t cooling Singapore’s resale flat market anymore. Prices keep...

Mandarin Top 5

Top 5 Best Alternative Music Venues in Singapore

Jayson Ang – September 20, 2024 –

Singapore, a vibrant and bustling city-state, is known for its diverse culture and thriving arts scene. The city's love for...

All Buying Tips Opinion Selling Tips

Singapore’s Property Jungle: A Guide to Every Development Type

Jayson Ang – October 12, 2025 –

TLDR Singapore’s real estate market features a diverse mix of property types—public HDB flats, executive condominiums, private condos, landed homes...