Freehold vs Leasehold in Singapore: Which One Should You Buy?

If you’ve ever scrolled property listings and wondered why two similar condos are priced so differently, the answer often comes down to tenure. In Singapore, the big question is: Freehold or Leasehold?

Let’s break it down.

🔑 What Is a Freehold Property?

A freehold property gives you indefinite ownership of the land and home — you (or your heirs) own it perpetually.

✅ Pros:

• No expiry date: You don’t have to worry about lease decay eating into your property’s value.

• Stronger long-term appreciation: Especially true for rare landed homes in central areas.

• More control: Some en bloc processes may require higher owner consensus in freehold projects.

• Legacy asset: Easier to pass on to future generations.

  
  

❌ Cons:

• More expensive upfront: Prices can be 10–25% higher than nearby leasehold units.

• Lower rental yield: High entry cost may reduce ROI for landlords.

• Fewer new launches: Most new launches today are leasehold due to government land sales.

🕒 What Is a Leasehold Property?

Most HDB flats and many condos in Singapore sit on 99-year leases (some older ones are 999-year). Once the lease runs out, the land returns to the state unless renewed or en bloc happens.

✅ Pros:

• Lower entry price: Lets you buy into better locations or larger units with the same budget.

• Newer stock: Most new developments are leasehold and come with updated layouts/facilities.

• Higher rental yields: Especially if you're buying in OCR or near MRTs.

  
  

❌ Cons:

• Depreciates with age: Properties with less than 60 years of lease face financing and CPF usage restrictions.

• Harder to resell after 40 years: Some buyers and banks may avoid older leaseholds.

• Not a true legacy asset: Cannot be held forever — especially a concern for children or future inheritance planning.

🧮 Freehold vs Leasehold: What Really Matters

Factor	Freehold	Leasehold
Ownership Duration	Forever	99 years (typical)
Entry Price	Higher	Lower
Resale Value	More stable in long run	May dip with age
Rental Yield	Lower	Higher (due to lower cost)
Financing	Easier regardless of age	Harder after 40–60 years
Legacy Planning	Better	Limited
Availability	Less common	More choices, esp. new launches

🧭 So Which Should You Choose?

Ask yourself:

• How long do I plan to hold this property?If it’s short- to mid-term, leasehold may offer better value and returns.

• Do I plan to rent it out?Leasehold properties may yield more — especially if close to MRT or schools.

• Am I buying to live or to leave behind?If it’s for legacy or peace of mind, freehold gives you security — at a price.

🏁 Final Thoughts

Don't fall into the “freehold is always better” trap. A well-located leasehold unit with a good layout and price can easily outperform a freehold property in a less desirable area.

💬 Thinking of Buying?

Whether you're choosing between leasehold or freehold, a property decision shouldn’t be made in isolation.

👉 Let me help you assess your goals and budget — and find the right match. Contact me for a free, no-obligation consult.