Freehold vs Leasehold Condos in Singapore: What’s the Right Choice for You?

Let’s explore what each tenure means and how they compare in the current Singapore real estate market.

What Is a Freehold Condo?

A freehold condo offers perpetual ownership, meaning the property is yours indefinitely. Once you buy a freehold unit, it remains in your name and can be passed down through generations without concern about a lease running out.

Key Features of Freehold Condos:

No expiry date on ownership
Generally seen as more prestigious
Tends to hold value better in the long run
Often more expensive than leasehold units
Harder to find in prime central locations

Freehold properties appeal to buyers seeking legacy planning or those with long-term plans to stay in Singapore. They are often preferred by investors who want maximum capital preservation.

What Is a Leasehold Condo?

A leasehold condo, on the other hand, comes with a limited period of ownership—typically 99 years in Singapore. After the lease runs out, the land reverts to the government unless it is renewed (which is rare and not guaranteed).

Key Features of Leasehold Condos:

Ownership is limited to the lease duration
Generally more affordable than freehold units
More choices available across different locations
Tends to depreciate in value as lease runs down
Attractive for rental investors due to lower entry cost

Leasehold condos are particularly popular among younger homebuyers or investors looking to maximize returns in the short to medium term.

Cost Comparison: Freehold vs Leasehold

One of the most striking differences between the two is the price. Freehold condos typically cost 10% to 20% more than comparable leasehold units in the same area. This premium reflects the permanence of ownership and perceived long-term value.

However, leasehold condos can offer better rental yield in some cases because of their lower purchase price, making them attractive for property investors.

Example:

If a leasehold condo costs SGD 1 million, a similar freehold unit might be priced at SGD 1.1 to 1.2 million. For buyers on a tighter budget, the leasehold option may open doors to better locations or larger units.

Value Over Time

Freehold condos tend to maintain value better over time because ownership does not diminish. However, location and market demand often have a greater impact on property prices than tenure alone.

Leasehold condos typically appreciate in the early years, especially if they’re in up-and-coming areas or close to transportation hubs. But after around 40–50 years, the value may start to stagnate or decline as the lease decays—making it harder to sell or refinance.

Financing and CPF Usage

Both freehold and leasehold properties can be financed with a home loan, but banks and the Central Provident Fund (CPF) impose stricter conditions on older leasehold properties.

For CPF Use:

Lease must have at least 20 years remaining
To use the full CPF amount, the lease must cover the youngest buyer until age 95

This means if you're considering an older leasehold property, your ability to use CPF and secure a full loan may be limited.

En Bloc Potential

Some buyers are drawn to leasehold condos because of the higher likelihood of en bloc sales, especially when a lease runs low and developers see redevelopment potential.

While freehold condos can also go en bloc, it’s usually harder due to higher asking prices and owners' reluctance to give up perpetual ownership.

Which Is Better for Investment?

The answer depends on your investment horizon and goals:

Freehold: Better for long-term capital appreciation, legacy planning, and ownership security.
Leasehold: Potentially higher rental yields and lower entry costs. Suitable for short-to-mid-term investment or first-time buyers.

If you're buying a condo in a highly desirable location where demand is strong, even a leasehold unit can offer impressive returns.

Who Should Choose Freehold?

Buyers looking for generational wealth transfer
Those who plan to live in the property long-term
Investors prioritizing long-term capital growth

Who Should Choose Leasehold?

Buyers seeking affordability in better locations
Investors focused on rental income
Young couples or first-time homeowners

Conclusion

Both freehold and leasehold condos have their pros and cons. What matters most is your personal situation, financial goals, and time horizon. While freehold offers peace of mind with permanent ownership, leasehold properties can provide greater flexibility and access to better locations at a lower cost.

Before making your decision, evaluate your needs, consult a real estate advisor, and consider how the tenure aligns with your long-term plans. In Singapore’s competitive and well-regulated property market, there’s no one-size-fits-all answer—just the right choice for you.