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 Ultra-Private Condominiums in Singapore Offering Unparalleled Seclusion

Jayson Ang – June 5, 2026 –

TLDR This article highlights six luxury condominiums in Singapore that offer exceptional privacy by having no direct neighbors on the...

All Blog Posts Buying Tips

What is a Tenancy Agreement (TA)

Jayson Ang – July 21, 2023 –

TLDR When it comes to understanding property jargon, it's crucial to familiarize yourself with the specifics of a Tenancy Agreement...

All Buying Tips Opinion

Fresh Take: Old vs New Condos in District 15 — Which Gives Better Value in 2026?

Jayson Ang – April 6, 2026 –

TLDR District 15 condos show a nuanced split between old and new developments. Freehold projects have driven much of the...

All Buying Tips Opinion

Why Cash Over Valuation (COV) Doesn’t Matter Anymore

Jayson Ang – September 20, 2025 –

TLDR HDB’s old strategy of hiding Cash Over Valuation (COV) data isn’t cooling Singapore’s resale flat market anymore. Prices keep...

All Blog Posts Buying Tips

Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!

Jayson Ang – March 14, 2023 –

TLDR Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering...

Mandarin Top 5

Top 5 Bakeries in Singapore for Fresh Bread and Pastries

Jayson Ang – May 6, 2024 –

Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...

Buying Tips Mandarin Top 5

5 Reasons Why You Should Consider Investing In Singapore Real Estate

Jayson Ang – August 1, 2023 –

TLDR Investing in Singapore real estate offers attractive tax incentives, low cost of living, high rental yields, market reliability, diversification...

All Buying Tips Opinion

Buy a $1M Resale HDB or a $1M Resale Condo?

Jayson Ang – August 19, 2023 –

TLDR When comparing a million-dollar HDB flat to a private property of the same value, the HDB flat offers more...

Mandarin Top 5

Top 5 Factors : Location More Important Than Freehold Status?

Jayson Ang – March 3, 2025 –

When it comes to purchasing a property, there are numerous factors that potential buyers need to consider. While the debate...

All Buying Tips

The Changing Faces of Orchard Road

Jayson Ang – October 10, 2024 –

Should You Buy, Sell or Wait? If you're reading this, you must be trying to figure out the best course...

Mandarin Top 5

Top 5 Reasons : Why Investing in Singapore’s Property Market Is a Smart Move for Expats – Expert Analysis!

Jayson Ang – February 7, 2025 –

Singapore, a thriving city-state in Southeast Asia, has long been a popular destination for expatriates seeking new opportunities and a...

Mandarin Top 5

Top 5 : Why Ultra-Rich Foreigners Will Still Buy Property In Singapore

Jayson Ang – March 1, 2025 –

Singapore, a small island nation in Southeast Asia, has been steadily gaining recognition as a hotspot for the ultra-wealthy to...

All Blog Posts Buying Tips

Unveiling the Secrets: How Foreigners Can Buy Property in Singapore – 6 Essential Steps to Follow

Jayson Ang – December 19, 2024 –

TLDR Foreign investors find Singapore attractive due to its stable governance and transparent business practices. Foreigners, including Permanent Residents (PRs),...

All Buying Tips Opinion Selling Tips

Discover the Optimal Timing to Invest in Singapore Real Estate: Unveiling Historical Insights

Jayson Ang – August 1, 2024 –

TLDR When considering the best time to buy or sell a property in Singapore, historical data analysis reveals key insights....

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 Blog Posts Buying Tips

Avoid The Possibility Of Negative Cash Sales: Find Out How Much Your HDB Has To Appreciate To Steer Clear Of It!

Jayson Ang – January 31, 2023 –

TLDR When selling your property, watch out for negative cash sales that could leave you with no money after CPF...

Mandarin Top 5

Top 5 Tips : How Investors Protect Themselves From Risk And Capitalize On Emerging Opportunities In Singapore’s Real Estate Landscape

Jayson Ang – April 27, 2025 –

The real estate landscape in Singapore has always been a lucrative investment opportunity for both local and international investors. However,...

Mandarin Top 5

5 Singapore Property Trends to Watch in 2023: Expert Weigh In

Jayson Ang – May 20, 2023 –

5 Singapore Property Trends to Watch in 2023: Expert Weigh In Top 5 Singapore Property Trends to Watch in 2023...

Mandarin Top 5

Top 5 Reasons Why Singapore’s Luxury Property Market Is Booming – Expert Analysis!

Jayson Ang – October 17, 2024 –

Singapore's luxury property market has been experiencing a significant boom in recent years, attracting the attention of investors and high-net-worth...