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 …

All Buying Tips

Could You Still End Up Losing Money When Buying Property in Singapore During a Market Slump?

Jayson Ang – February 14, 2024 –

TLDR When it comes to property investments, timing is crucial. Buying at the right moment is only half the battle;...

All Buying Tips Opinion

Larger Living Spaces: The New Demand Surge Post-Pandemic

Jayson Ang – January 13, 2025 –

TLDR We explore the significant impact of digital marketing strategies on business growth in today's competitive landscape. It highlights the...

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 Selling Tips

Singapore Homebuyers: Finding Hidden Value in ‘Undesirable’ Property Traits

Jayson Ang – June 15, 2025 –

TLDR Many perceived drawbacks in Singapore’s property market—such as mortgage lock-ins, leasehold status, west-facing units, nearby construction, inefficient spaces, and...

Buying Tips Mandarin Top 5

Investment 101: The Top 5 Best Long-Term Values In Singapore’s Property Market

Jayson Ang – July 10, 2023 –

Investment 101: The Top 5 Best Long-Term Values In Singapore's Property Market When it comes to purchasing property in Singapore,...

All Blog Posts Buying Tips

Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies

Jayson Ang – February 21, 2023 –

TLDR Jayson Ang provides valuable insights on money-saving strategies to achieve the goal of owning a flat before turning 35...

All Opinion Selling Tips

Why More First-Time Buyers Are Picking Condos Over BTO Flats in 2025

Jayson Ang – November 1, 2025 –

TLDR In 2025, more first-time Singapore buyers are choosing condos over BTO flats. Key reasons include faster move-in times, better...

Mandarin Top 5

Singapore Sights & Sounds: 5 Must-Know Facts From the Little Red Dot

Jayson Ang – March 7, 2025 –

Singapore, affectionately known as the Little Red Dot, is a vibrant city-state in Southeast Asia that boasts a unique blend...

Buying Tips Mandarin Top 5

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection

Jayson Ang – July 4, 2023 –

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection When it comes to luxury property investments, Singapore...

Buying Tips Mandarin Top 5

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn’t Take

Jayson Ang – June 28, 2023 –

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn't Take Entering the Singapore property market can...

Buying Tips Mandarin Top 5

Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island

Jayson Ang – June 20, 2023 –

Sentosa's Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore's Premier Island Here are the top 5 reasons...

All Blog Posts Buying Tips

What’s The Difference Between An Offer To Purchase And An Option To Purchase?

Jayson Ang – May 29, 2023 –

TLDR Understanding the crucial difference between an Offer to Purchase and an Option to Purchase (OTP) is vital when buying...

All Buying Tips Reports Selling Tips

Exploring the Allure of Freehold Titles Among Singaporeans

Jayson Ang – October 16, 2025 –

TLDR Freehold properties remain highly attractive in Singapore due to their scarcity, lasting value, and legacy potential. Buyers are drawn...

All Blog Posts Buying Tips

Checklist for First-Time Homebuyers in Singapore: A Guide to Viewing Condos

Jayson Ang – May 4, 2023 –

TLDR The checklist provides essential steps for first-time homebuyers in Singapore to consider when viewing a condo. It includes aspects...

Mandarin Top 5

Singapore’s Real Estate Market: The 5 Most Important Documents to Review Before Buying a Property

Jayson Ang – March 26, 2024 –

Singapore's real estate market is highly regulated and can be complex for those unfamiliar with the process. As a prospective...

All Buying Tips

Here’s How Property Data Can Be Misleading: Navigating Through Common Misunderstandings

Jayson Ang – April 14, 2024 –

TLDR When comparing property prices, discrepancies can arise due to various factors like timing of purchase, scarcity in niche projects,...

Mandarin Top 5

Retiring in Singapore? Here’s Where to Find the 5 Best Property Investments for Comfort and Security!

Jayson Ang – March 22, 2024 –

Retirees have unique needs when it comes to property investments. They require properties that offer comfort, security, and easy access...

Mandarin Top 5

Top 5 Factors : Why Investing In A Property With A Good View Can Be A Profitable Move In Singapore

Jayson Ang – August 1, 2024 –

Investing in a property with a good view in Singapore can be a profitable move for several reasons. Here are...

All Buying Tips Opinion

Beyond Tenure: Why These Buyers Chose Older Leasehold Condos in Singapore

Jayson Ang – February 14, 2026 –

TLDR Older leasehold condos in Singapore may face skepticism but offer key benefits such as affordability, location, and flexibility. Three...

All Buying Tips Opinion