Your search results

Freehold vs. Leasehold Condos in 2025: An Updated Performance Analysis

Posted by Jayson Ang on September 19, 2026

| 0

TLDR

Freehold vs. leasehold condos in Singapore show nuanced performance differences over the past decade. Leasehold units often deliver stronger percentage returns, especially in mass-market areas like the Outside Central Region (OCR), where affordability drives appreciation. Freehold properties, however, tend to achieve higher absolute gains, particularly in larger unit categories, though they face weaker ROI in smaller one- and two-bedroom segments. New launch data highlights leasehold dominance, while resale transactions reveal a narrowing gap, with freehold units performing comparably in annualized returns. Regional dynamics matter: leasehold in the OCR outpaces leasehold in the Core Central Region (CCR), where high entry prices and freehold competition dampen growth. Ultimately, tenure alone is not the decisive factor—location, affordability, and unit mix play greater roles in shaping returns. Investors should focus less on freehold prestige and more on practical drivers of demand and appreciation. jaysonang.com

A frequent query among potential homebuyers in Singapore revolves around the perennial debate: “Should I buy freehold or leasehold?” While property price movements are influenced by numerous factors beyond tenure, an updated analysis of price performance since 2014 provides intriguing insights. For this analysis, 999-year leases are considered effectively equivalent to freehold.

Freehold vs. Leasehold Price Movements (2014-2024): General Snapshot

This section examines overall price movements across all types of sale transactions (new-to-resale, resale-to-resale, etc.), excluding new-to-resale Executive Condominiums (ECs) to avoid distorting the picture with their subsidized initial prices.

For one-bedroom units, leasehold properties demonstrably outperformed their freehold counterparts in terms of ROI, average gains, and annualized returns. In the two-, three-, and four-bedroom categories, performance was quite close. Leasehold units generally saw slightly higher ROI and annualized percentage gains, but freehold units typically achieved higher absolute gains. For five-bedroom units, leasehold significantly outperformed in annualized percentage gains, while freehold again showed larger absolute gains. However, caution is advised for the luxury segment (larger units) due to potential price volatility.

New Launch Performance: Leasehold Dominance

Examining only new launch transactions, a clear pattern emerges:

New launch leasehold units generally outperformed their freehold counterparts across all size categories in terms of ROI and annualized returns. Freehold properties showed particular weakness in the one- and two-bedroom segments, with significantly lower ROI compared to leasehold units. While freehold units achieved higher absolute gains for larger four- and five-bedroom units, the limited transaction volume for five-bedroom freehold units makes strong conclusions difficult. This trend is often attributed to the inherent characteristics of mass-market, fringe-region condominiums, where many large leasehold plots in the OCR offer a lower initial entry price, providing more room for price appreciation compared to the freehold premium.

Resale Performance: A Narrowing Gap

The picture shifts when focusing solely on resale transactions, where properties have already undergone initial price discovery.

In the resale segment, the gap between leasehold and freehold performance narrows considerably. Freehold units often achieve higher absolute gains for two- and three-bedroom units, while the annualized returns between leasehold and freehold become quite similar (often within 0.2-0.3%).

Segment-Specific Performance

Breaking down performance by region and tenure reveals further insights:

Leasehold units in the Outside Central Region (OCR) demonstrated the strongest annualized returns, reinforcing the idea that affordability and mass-market appeal drive percentage gains. The OCR generally outperformed the CCR. Conversely, leasehold units in the CCR showed the weakest performance, facing a double disadvantage of high initial prices combined with a potential psychological “contrast effect” when surrounded by freehold counterparts. Due to the high volume of leasehold transactions in the OCR, their overall impact on average performance is significant, though the performance difference between leasehold and freehold within the OCR itself is not as substantial.

Conclusion:

While leasehold properties have generally outperformed freehold in terms of percentage returns, this is often attributed less to tenure itself and more to factors like location, affordability, and unit mix. The prevalence of leasehold condos in the OCR, where land is cheaper, allows for a lower base price and greater room for appreciation. This suggests that for investors, focusing on these underlying drivers—affordability and mass-market appeal—may be more impactful than tenure alone.

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 Opinion

6 Hot Property Market Trends in Singapore 2024: What Buyers Should Anticipate

Jayson Ang – May 27, 2024 –

TLDR When diving into Singapore's property market, expect a rollercoaster ride as trends shift drastically in 2024. Landlords and tenants...

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...

All Blog Posts Opinion

Singapore Property Price Set to Explode Upwards in 2024?

Jayson Ang – March 10, 2023 –

TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...

All Buying Tips Opinion

The High Price of Picking the Wrong Property in Singapore in 2025

Jayson Ang – January 9, 2025 –

The Steep Price Of Making A Mistake When Buying Property In Singapore Are you yearning for a condo, but the...

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 Opinion

5 Techniques for Identifying Undervalued Properties in Singapore 2023

Jayson Ang – August 23, 2023 –

TLDR To spot undervalued properties in Singapore's real estate market, focus on market value, location, and unique features. Consider "up...

All Blog Posts Buying Tips

What Will Happen When Your 99-Year Housing Lease Expires?

Jayson Ang – February 11, 2023 –

TLDR We delve into the challenges faced by Singaporeans with expiring 99-year housing leases. It explores the types of leases...

Mandarin Top 5

Top 5 Shopping Malls in Singapore for Luxury Shopping

Jayson Ang – March 5, 2024 –

Singapore, a bustling city-state known for its stunning architecture and diverse culture, is also a paradise for luxury shopping enthusiasts....

All Opinion

What’s Needed For Singapore To Lift Those Cooling Measures?

Jayson Ang – February 2, 2024 –

TLDR The blog post discusses the recent relaxation of real estate restrictions in Hong Kong, contrasting with Singapore's stricter regulations....

All Opinion Selling Tips

6 Factors Making Singaporean Properties Difficult to Sell (Even in a Strong Market)

Jayson Ang – June 2, 2026 –

TLDR Properties in Singapore may linger on the market due to several key factors. Small boutique developments face price volatility,...

All Buying Tips Opinion Selling Tips

The Real Impact of Industrial Areas on Condo Prices: A Tale of Two Towns

Jayson Ang – March 2, 2026 –

TLDR A case study comparing condos near light industrial areas in Yishun and Bishan found that proximity to these zones...

All Buying Tips

A Comprehensive Guide for Buying Landed Real Estate in Singapore

Jayson Ang – February 26, 2024 –

TLDR When it comes to buying landed property in Singapore, there are three main types: terrace houses, semi-detached homes, and...

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

Investing in Singapore Real Estate as a Foreigner

Jayson Ang – January 1, 2023 –

TLDR The blog post discusses the rules and regulations for foreign investors looking to purchase real estate in Singapore. It...

All Buying Tips

What Is Cash Over Valuation in HDB (COV)

Jayson Ang – November 8, 2023 –

TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...

Mandarin Top 5

From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City

Jayson Ang – February 20, 2024 –

Singapore is a small island city-state with a population of over 5 million people. Its urban landscape is constantly evolving,...

All Blog Posts Buying Tips

A Step-by-Step Guide To Upgrading From an HDB Flat To Your a Private Property

Jayson Ang – January 3, 2023 –

TLDR Understanding the complexities of upgrading from an HDB flat to a private property in Singapore involves selling your HDB...

All Blog Posts Opinion

Discover 7 Reasons to Sell and Right-Size Your Property

Jayson Ang – April 9, 2023 –

TLDR The increasing trend of right-sizing properties in Singapore is driven by various factors such as lifestyle changes, financial gains,...

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...