Your search results

Challenging the Myth of Lease Decay: Older Leasehold Condos Outperforming Newer Ones

Posted by Jayson Ang on February 10, 2026

| 0

TLDR

Older leasehold condos in Singapore, particularly those built in the 1980s and 1990s, have shown annualised price growth exceeding 3%, sometimes outperforming newer developments. The COVID-19 pandemic increased demand for affordable, larger units suitable for Work From Home, boosting prices of older condos. While lease decay remains a long-term concern, these properties offer strong short- to medium-term appreciation, potential en bloc opportunities, and attractive rental yields due to their lower entry prices. However, ageing facilities and maintenance are immediate challenges. Location, size, and affordability often outweigh the age factor in value. Recent data disproves the belief that older leasehold condos always underperform. Buyers and investors should consider specific property characteristics and market context before deciding to buy, sell, or hold, leveraging strategic advice and thorough analysis for optimal decisions.

A common concern among Singaporean homebuyers regarding leasehold condos is the inevitable decline in value as the lease runs down – a phenomenon known as lease decay. The question is, at what point does this decay begin to significantly impact appreciation? Recent market trends, particularly in the aftermath of COVID-19, have added complexity to this question, with older condos showing unexpected price spikes and attracting investor interest. Let’s examine the data to see what it reveals about the performance of older leasehold properties.

Key Findings:

Strong Growth in Older Condos: Older leasehold condos (built in the 1980s–1990s) have matched or even surpassed the annualised price growth of newer ones, exceeding 3% per annum.
COVID-19 Impact: The pandemic, with its shift towards Work From Home (WFH) arrangements and a shortage of new housing supply, boosted demand for more affordable, larger units in good locations, benefiting older condos.
Short- to Mid-Term Potential: While lease decay is a long-term reality, older leasehold condos continue to show strong short- to medium-term appreciation and some may even have en bloc potential.

Understanding the Dynamics: Pitfalls and Advantages

Beyond price appreciation, it’s important to consider the qualitative aspects of older condos. While price depreciation is a long-term concern, ageing facilities and maintenance issues can be immediate pitfalls. Conversely, the lower price point of an older unit can offer access to desirable locations or larger unit sizes that might otherwise be unaffordable. For landlords, the lower price can translate to higher rental yields. These qualitative factors are not always reflected in price data alone.

Annualised Growth Rates: A Closer Look

Analyzing the annualised growth rates of older leasehold condos (over 30 years old) compared to newer ones reveals interesting trends. Filtering for older condos with consistent transaction history since 1995 provides a clearer picture of their price appreciation.

Leasehold condos built in the 1980-1989 and 1990-1999 periods show consistent annualised growth rates of around 3.19% and 3.22% respectively. Condos built between 2000-2009 have slightly lower growth (3.08%), while those built between 2010-2019 have the lowest growth rate (1.15%).

The pandemic played a significant role in boosting the prices of older condos. The increased adoption of WFH and a shortage of new housing supply led buyers to consider older properties, especially those offering larger unit sizes. Coupled with their lower starting prices compared to newer developments, these older properties had more room for appreciation, driving up their percentage gains.

Challenging Assumptions

This analysis challenges the long-held assumption that older leasehold condos always perform worse. In fact, units from the 1980s and 1990s have shown comparable or better growth than newer ones over the past decade. While lease decay remains a long-term risk, factors like location, size, and affordability can outweigh age concerns in the short to medium term, especially in a market where new launches command premium pricing.

Other factors not captured in the data, such as the potential for en bloc sales in improving areas or the appeal of larger unit sizes in older projects, can also contribute to their performance.

Case Studies: Specific Examples

To further explore this phenomenon, future analysis will delve into case studies of specific older leasehold condos like Orchid Park, The Tanamera, Loyang Valley, and The Arcadia. These examples will provide more detailed insights into the factors driving their performance and offer valuable lessons for buyers and sellers of older leasehold properties.

Ultimately, while lease decay is a real consideration, the recent performance of older leasehold condos suggests that they can still offer attractive returns and should not be dismissed without a thorough analysis of their specific characteristics and market context.

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

Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets

Jayson Ang – July 29, 2023 –

Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....

All

Is Great World Quietly Becoming Central Singapore’s Most Livable Locale?

Jayson Ang – April 20, 2026 –

TLDR Great World, located in Singapore’s Core Central Region (CCR), offers a unique blend of heritage, community, and convenience distinct...

All Blog Posts Buying Tips

Singapore Decoupling Guide

Jayson Ang – December 29, 2022 –

TLDR Decoupling in Singapore's real estate refers to the process of separating property ownership to avoid Additional Buyer's Stamp Duty...

All Opinion Selling Tips

Selling Your Singapore Condo? Don’t Overlook This Critical Factor

Jayson Ang – March 14, 2026 –

TLDR When selling a condo in Singapore, the number of units listed in the same development plays a crucial role....

All Opinion

Unseen Dangers of Putting Your Money in Upscale Freehold Properties in Singapore

Jayson Ang – February 17, 2024 –

TLDR Luxury freehold properties in Singapore may not always be the lucrative investment opportunities they appear to be. High-end properties...

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 Blog Posts Buying Tips

Beware of These 7 Deceptive Tricks In Showflat Condo Sales

Jayson Ang – May 14, 2023 –

TLDR When navigating the complexities of the real estate market, it's crucial to be wary of hidden marketing tricks when...

All Buying Tips

Superstitions in the Real Estate Market : How Does it Impact Resale Value?

Jayson Ang – June 20, 2023 –

TLDR When navigating the Singapore property market, it's crucial to consider various superstitious beliefs that can impact your decisions. From...

Mandarin Top 5

Top 5 : Potential Risks Should Be Considered When Investing Property Within Singapore’s Competitive Real Estate Markets

Jayson Ang – December 27, 2024 –

Singapore, a bustling financial hub in Southeast Asia, has seen its real estate market flourish over the years. The city-state's...

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...

All Opinion Selling Tips

The Lease Buyback Scheme Is A Strategy That Could Help You Retire Comfortably In Your HDB Flat

Jayson Ang – April 23, 2024 –

TLDR The Lease Buyback Scheme (LBS) trend among older Singaporeans is slowly gaining momentum, despite initial reluctance. The scheme allows...

All Buying Tips Top List

Tips for Choosing the Home of Your Dreams

Jayson Ang – December 26, 2022 –

TLDR Decoding the Singapore property market can be challenging, but understanding key factors like property size, location, and lease tenure...

All Blog Posts Buying Tips Opinion Selling Tips

Should You Keep Your Resale HDB Flat When Buying a Private Property? 5 Key Factors to Consider

Jayson Ang – November 3, 2024 –

TLDR In Singapore, owning both an HDB flat and a private property has become complicated due to factors like Additional...

All Buying Tips Opinion Selling Tips

The Rise of New Launch 2-Bedroom Condos: Why Homebuyers are Prioritizing Them Over Resale Options in 2025

Jayson Ang – May 27, 2026 –

TLDR Two-bedroom condominiums are shifting from primarily rental investments to popular family homes, especially among small families and HDB upgraders,...

Mandarin Top 5

Top 5 Tips: Gain an Edge in the Singapore Property Market: Steps to Boost Your Investment Returns

Jayson Ang – May 11, 2025 –

The Singapore property market has always been a hotbed for investors looking to make substantial returns on their investments. As...

All Blog Posts Buying Tips

Discover 11 Helpful Tips for Buying an Older Condo : A Comprehensive Guide for Buyers

Jayson Ang – March 2, 2023 –

TLDR When considering purchasing an older resale condo, ensure you investigate potential en-bloc bids, lift conditions, parking conveniences, playground safety,...