Your search results

Leasehold vs. Freehold Condos in Singapore: A Decade of Data

Posted by Jayson Ang on December 14, 2025

| 0

TLDR

In Singapore’s property market (2014-2024), leasehold condos often outperform freehold in short-term holding (around 10 years) due to lower prices and stronger gains. Freehold properties show better returns mainly over longer periods, especially for older buildings. Newer freeholds are more volatile and don’t guarantee quick profits. Leasehold leads in new-to-resale sales, while older freeholds do better in resale-to-resale deals. The belief that freehold is always better is outdated; choice depends on holding period, price, and market cycle. For short-term gains, leasehold is usually better; for long-term value, freehold may win. Expert advice is recommended for personalized strategies.

The conventional wisdom in Singapore’s property market dictates that “freehold is superior.” However, this adage often overlooks the crucial element of time. A 99-year lease is a substantial duration, and the perceived benefits of freehold status may take many decades to materialize. For those who plan to sell their property within a relatively short timeframe, such as the first ten years, the freehold premium might even become a disadvantage. This analysis examines ten years of data (2014-2024) to determine at what point freehold properties begin to outperform their leasehold counterparts and when leasehold still holds the advantage.

Comparative Performance: Freehold vs. Leasehold (2014-2024)

Analyzing the price growth of freehold (including 999-year leasehold) and 99-year leasehold condos reveals nuanced trends. Properties built from 2015 were excluded to avoid skewing the data, as newer developments are predominantly leasehold due to government land sales policies.

Over the past decade, the price per square foot (psf) gap between freehold and leasehold properties has widened slightly. However, in terms of annualized percentage growth, leasehold properties appear to have a marginal edge. This can be attributed to the freehold premium, which typically translates to a 15-20% higher initial cost for freehold properties. This higher starting point allows leasehold properties more room for appreciation.

Leasehold condos experienced their most significant gains during the post-pandemic period (2022-2023), with annualized growth nearing or exceeding 10%. Freehold/999-year condos saw slightly lower gains during this period. The price surge in leasehold properties was likely driven by a housing supply shortage, making them a more accessible option for buyers.

In 2016, leasehold properties saw an exceptional 13.99% price growth compared to a mere 0.98% for freehold properties.

Interestingly, the price difference in psf between leasehold and freehold condos in 2024 (20.47%) is almost identical to the level seen in 2016 (19.15%).

Key Observations from the Data:

Age Matters: Freehold status becomes more advantageous as properties age. Analyzing cohorts by building age (2010-2014, 2000-2009, 1990-1999, 1980-1989) shows that the performance gap between freehold and leasehold widens significantly for older properties. However, it takes a considerable amount of time for freehold to demonstrate a real difference in performance. Considering that many condos don’t surpass 30 years of age, the value of the freehold premium for shorter holding periods is questionable.

Resale-to-Resale Transactions: Examining properties bought and sold between 2014/15 and 2019 onwards (excluding distress sales) reinforces the age factor. Older freehold properties consistently show higher annualized returns compared to their leasehold counterparts. This is particularly evident in the 1990s cohort, where the gain difference was around 12%.

Volatility in Newer Freehold Properties: Newer freehold condos (2010-2019) have exhibited more volatility in their earlier years, mirroring the performance of 99-year leasehold condos from the same era. This suggests that freehold status doesn’t guarantee strong short-term gains and can even be riskier due to higher launch prices.

Absolute Dollar Gains: Despite percentage growth variations, older freehold properties often outperform in absolute dollar terms.

New-to-Resale Transactions: Leasehold Takes the Lead

Analyzing properties bought as new launches in 2014/15 and sold from 2019 onwards reveals a different trend. Leasehold condos consistently showed higher average returns and quantum gains every year compared to their freehold equivalents.

Conclusion: It Depends on Your Strategy

The data challenges the notion that “freehold is always better,” particularly for shorter holding periods. While freehold properties offer perceived long-term security, leasehold condos, especially new launches, have consistently delivered stronger short-term gains, sometimes by over 20%. This outperformance is particularly evident during market upturns when affordability drives demand.

A data-driven approach that considers entry price, market cycle, and holding period is crucial for identifying profitable opportunities, regardless of tenure.

For those seeking a deeper understanding of market dynamics and counter-intuitive strategies, consulting with real estate professionals who leverage data is highly recommended.

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 Blog Posts Buying Tips

CPF Accrued Interest On Housing: Learn What It Is and How to Calculate It

Jayson Ang – February 14, 2023 –

TLDR Understanding the CPF accrued interest on housing loans is crucial for Singaporean homeowners. When using CPF funds to finance...

Mandarin Top 5

5 Impacts Of The Singapore-Malaysia High-Speed Rail On The Property Market

Jayson Ang – June 10, 2024 –

The proposed Singapore-Malaysia High-Speed Rail (HSR) is a joint project between the two countries that aims to improve connectivity and...

All Blog Posts Buying Tips

Avoid These 6 Terrible Property “Tips” in Singapore

Jayson Ang – May 1, 2023 –

TLDR When it comes to property advice, it's crucial to be cautious of common misconceptions. For instance, schemes like the...

Mandarin Top 5

Top 5 Cafes in Singapore for Brunch

Jayson Ang – March 10, 2024 –

Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....

All Buying Tips

Using CPF Funds to Finance Your HDB Flat or Private Property in Singapore: A Comprehensive Guide

Jayson Ang – May 13, 2024 –

Discover the extent to which your CPF savings can be utilized for the acquisition of a HDB home in Singapore,...

Mandarin Top 5

Top 5 Historical Landmarks in Singapore

Jayson Ang – April 24, 2024 –

Singapore, a bustling cosmopolitan city-state, is known for its rich history and diverse cultural heritage. This small yet vibrant nation...

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...

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...

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 Buying Tips Opinion

My 6 Factors to Consider When Buying a Property in 2023

Jayson Ang – March 11, 2023 –

As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...

Mandarin Top 5

Top 5 : Must-Do Experiences to Make the Most of Your Singapore Trip

Jayson Ang – January 26, 2025 –

Singapore, a vibrant island city-state located off the southern coast of Malaysia, is a melting pot of cultures and a...

All Blog Posts Buying Tips

Step-By-Step Guide To Buy Resale HDB (Updated March 2023)

Jayson Ang – July 13, 2023 –

TLDR The process of purchasing a resale HDB flat involves steps such as checking eligibility, calculating affordability, registering intent to...

All Buying Tips Opinion

Three Singaporeans Share Their Experiences of Co-Owning a Property with Friends

Jayson Ang – March 18, 2025 –

TLDR In Singapore, some individuals venture into property investments with unrelated partners, driven by opportunities and personal circumstances. Jim, leaving...

All Blog Posts Opinion

Invest During the Bearish & Exit During the Bullish

Jayson Ang – December 27, 2022 –

TLDR A comprehensive overview of the real estate market trends, emphasizing the importance of strategic property analysis and investment decisions....