Answer
Freehold vs Leasehold Condo in Singapore
The freehold premium is real — but whether it's worth paying depends on how long you're holding and what you're optimising for.
Answer: Freehold condos cost 10–20% more than comparable 99-year leasehold condos. For holds under 15 years, leasehold can deliver similar returns at lower entry cost. For 20+ year holds, freehold wins because it doesn't lose value to lease decay. Below 60 years remaining lease, leasehold values drop sharply — banks restrict loans and CPF usage gets limited.
Freehold vs 99-Year Leasehold — Full Comparison
| Factor | Freehold | 99-Year Leasehold |
|---|---|---|
| Price premium | 10–20% higher | Baseline |
| Lease decay | None | Accelerates after 60yr remaining |
| Bank loan | No tenure restriction | Restricted if <30yr lease |
| CPF usage | Full, always | Pro-rated or blocked if short lease |
| Appreciation (10yr) | Similar | Similar |
| Appreciation (30yr) | Better | Declining due to lease decay |
| En bloc potential | Moderate | Higher (developers top up lease) |
| Rental yield | Slightly lower (higher entry cost) | Slightly higher (lower entry cost) |
| Legacy / inheritance | Can pass down indefinitely | Depreciating asset |
Price Comparison — Same District
Illustrative PSF comparison for similar-sized units in the same area (2026 estimates)
| Location | 99-Year PSF | Freehold PSF | Premium |
|---|---|---|---|
| CCR (District 9/10) | $2,200 | $2,800 | ~27% |
| RCR (District 3/15) | $1,800 | $2,100 | ~17% |
| OCR (District 19/20) | $1,400 | $1,600 | ~14% |
PSF figures are indicative and vary by specific project. Premium is higher in prime districts where land is scarce.
Lease Decay — When It Bites
How remaining lease affects a 99-year leasehold condo's value and financing
| Lease Remaining | Value Impact | Bank Loan | CPF Usage |
|---|---|---|---|
| 99–70 years | Minimal decay | Full tenure available | Full |
| 70–60 years | Noticeable (~5–10%) | Shorter tenure | Full (if covers to 95) |
| 60–40 years | Significant (~15–30%) | Restricted | Pro-rated |
| 40–30 years | Steep (~30–50%) | Very limited | Heavily restricted |
| <30 years | Severe | Most banks refuse | Blocked |
Lease decay is non-linear — it accelerates. A 50-year-old leasehold is worth much less than 50% of a new 99-year lease.
Which Should You Buy?
Buy leasehold if…
- • You're holding for 5–15 years and plan to sell or en bloc
- • You want lower entry cost and higher rental yield
- • The project is young (less than 10–15 years old)
- • You're buying in a location with strong en bloc potential
Buy freehold if…
- • You're holding 20+ years or plan to pass it to your kids
- • You want no lease decay risk
- • You can afford the 10–20% premium
- • You're buying for long-term capital preservation
Run the numbers on your condo budget
See how much condo you can afford — whether freehold or leasehold — based on your income, CPF, and HDB sale proceeds.
Affordability CalculatorFAQ
Is freehold or leasehold condo better in Singapore?
It depends on your holding period. If you’re holding 10–15 years and selling, leasehold can give similar returns at a lower entry price. If you’re holding 20+ years or passing to the next generation, freehold holds value better because there’s no lease decay.
How much more does a freehold condo cost vs 99-year leasehold?
Freehold condos typically cost 10–20% more than comparable 99-year leasehold condos in the same area. In prime districts (CCR), the premium can reach 25–30%.
What is lease decay and when does it affect property value?
Lease decay is the accelerating loss of value as a 99-year lease shortens. It’s minimal in the first 30–40 years but accelerates sharply after 60 years remaining. Below 30 years, banks won’t lend and CPF usage is restricted.
Can I use CPF to buy an old leasehold condo?
CPF can only be used if the remaining lease covers the youngest buyer to age 95. For a 40-year-old buyer, the lease must have at least 55 years remaining. If the lease is shorter, CPF usage is pro-rated or blocked entirely.
Do freehold condos appreciate more than leasehold?
Over 10–15 years, both can appreciate similarly. Over 20–30 years, freehold tends to outperform because leasehold starts losing value to lease decay. The gap widens significantly after 40–50 years of lease remaining.
Which has better en bloc potential — freehold or leasehold?
Leasehold condos in desirable locations often have stronger en bloc potential because developers can top up the lease to 99 years. Freehold en blocs happen too, but the land cost is higher, so developer bids may be less aggressive.
Related
Last updated Feb 2026. PSF figures are indicative estimates. This is general information, not financial advice.