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 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...

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....

All Buying Tips Top List

Finding the Perfect Match: Top 20 : A Guide to Choosing the Best Property Agent in Singapore

Jayson Ang – December 17, 2022 –

TLDR When it comes to buying or selling real estate in Singapore, having a professional and knowledgeable property agent is...

Mandarin Top 5

Top 5 Reasons : Why Jayson Ang is the Best Property Agent in Singapore. And Why You Should Engage Him Today

Jayson Ang – March 9, 2024 –

In the bustling city-state of Singapore, the real estate market is highly competitive and constantly evolving. Finding the perfect property...

All Buying Tips Opinion

Why Are Singapore Property Agents So Keen on New Launch Condos? Unpacking the Motivations in 2025

Jayson Ang – June 11, 2025 –

TLDR In Singapore’s 2025 property market, agents’ strong preference for recommending new launch condos is less about chasing commissions and...

Mandarin Top 5

Top 5 Vegetarian Restaurants in Singapore

Jayson Ang – March 14, 2024 –

Singapore, a melting pot of cultures and cuisines, offers a diverse range of dining options for food enthusiasts. For vegetarians,...

Buying Tips Mandarin Top 5

Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market

Jayson Ang – July 14, 2023 –

Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...

All Buying Tips Opinion Selling Tips

5 Warning Signs of New Launch Condominiums That Certain Property Agents Might Not Disclose to You

Jayson Ang – November 29, 2025 –

TLDR When buying a new launch condo, don’t just rely on show flats or sales pitches—look deeper. Watch out if...

All Buying Tips Opinion Selling Tips

The 15-Month Wait-Out Period: An Unnecessary Burden in a Challenging Economy

Jayson Ang – February 6, 2026 –

TLDR The 15-month wait-out period introduced in September 2022 requires private property owners to wait before buying a resale or...

All Buying Tips Opinion Selling Tips

Understanding Government Land Sales (GLS) and Their Influence on Singapore’s Property Market

Jayson Ang – July 23, 2026 –

TLDR Singapore’s Government Land Sales (GLS) Programme is a key tool used by the government to manage land supply and...

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 Buying Tips Opinion

The Influence of Soaring Land Costs on Singapore’s Real Estate Market: A Look at Land Price Trends Since 1992

Jayson Ang – October 7, 2024 –

TLDR When it comes to understanding the fluctuations in land prices in Singapore, historical patterns reveal significant spikes and dips...

All Buying Tips Opinion

The Myth of Cheaper New Condos from Lower Land Prices in Singapore

Jayson Ang – February 22, 2026 –

TLDR Lower Government Land Sales (GLS) prices do not automatically lead to cheaper new launch condos in Singapore. Developers base...

All Buying Tips

How Much You Need to Earn to Afford a Condo 2023

Jayson Ang – October 30, 2023 –

TLDR When considering investing in a private property in Singapore, it's important to understand your borrowing capacity. Financial experts recommend...