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

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds

Jayson Ang – May 21, 2023 –

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...

Mandarin Top 5

Top 5 Best Unique Nighttime Experiences in Singapore

Jayson Ang – December 13, 2024 –

Singapore, a vibrant city-state known for its stunning skyline and diverse culture, truly comes alive at night. As the sun...

Mandarin Top 5

Top 5 : Places to See Singapore’s Skyline at Night

Jayson Ang – February 5, 2025 –

Singapore, a bustling metropolis known for its stunning skyline, offers an array of vantage points to witness the city's architectural...

All Buying Tips Opinion Selling Tips

Property Market: Buyer’s Paradise or Seller’s Dreamland?

Jayson Ang – July 24, 2024 –

TLDR The property market in Singapore post-Covid has seen a surge in HDB and private property prices, with a noticeable...

Mandarin Top 5

5 Top Reasons Why Chinese Love to Invest in Singapore Property Market Today

Jayson Ang – May 23, 2023 –

Here are the top 5 reasons why Chinese love to invest in Singapore's property market today. 1. Political stability: Singapore...

All Blog Posts Buying Tips Opinion

Does Sell 1 Buy 2 Strategy Still Works Today in 2024?

Jayson Ang – June 28, 2023 –

TLDR When considering the "Sell One By Two" property investment strategy, keep in mind that it involves selling your previous...

All Buying Tips

5 Exciting Trends Shaping Singapore’s Property Market for Future Buyers After 2024

Jayson Ang – July 5, 2024 –

TLDR When it comes to the evolving landscape of property development in Singapore, developers are facing new challenges and opportunities....

All Buying Tips Opinion

Say Goodbye to “Sell One, Buy Two” Approach in 2024

Jayson Ang – June 24, 2024 –

TLDR Summary: The "Sell One, Buy Two" real estate tactic, popularized in 2016-2017, involves selling a property and buying two...

All Buying Tips

5 Reasons To Invest In UK Property In 2024 Instead Of Saving

Jayson Ang – February 8, 2024 –

TLDR Investing in UK property in 2024 offers significant advantages over saving due to the potential for long-term value growth,...

All Blog Posts

3 Steps to Protect Yourself from Real Estate Scams in Singapore

Jayson Ang – December 17, 2022 –

Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...

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...

Buying Tips Mandarin Top 5

5 Things to do When You Go For A Property Viewing In Singapore Part 2

Jayson Ang – June 8, 2023 –

5 Things to do When You Go For A Property Viewing In Singapore Part 2 Here are 5 more things...

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....

Mandarin Top 5

Top 5 : Tips To Plan Your Retirement in Property Investments in Singapore

Jayson Ang – February 17, 2025 –

Planning for retirement is a crucial aspect of financial management, and property investment has emerged as a popular strategy for...

All Blog Posts Buying Tips

Learn the Essentials of Renting Property in Singapore as a Foreigner

Jayson Ang – May 26, 2023 –

TLDR Renting in Singapore offers various options for foreigners, such as HDBs, Condos, and even unique properties like heritage homes....

Mandarin Top 5

Top 5 Rooftop Bars in Singapore with Amazing Views

Jayson Ang – July 27, 2023 –

Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...

All Opinion

The Perils of Subletting in Singapore: Why Paying Rent On Time Isn’t Always Enough

Jayson Ang – May 3, 2026 –

TLDR Subtenants often mistakenly believe that paying rent consistently guarantees security. However, their rights are limited since the main tenant...