Amid the sluggish property market in recent years, prices of leasehold private homes appear to have been more resilient than those which are freehold, according to a study by consultancy Cushman & Wakefield. Cushman & Wakefield said prices of non-landed freehold homes saw a steeper drop of over 4 per cent since the third quarter of 2013, compared to the 1 per cent decline for those on a 99-year...
Freehold vs Leasehold
Apart from location, the next most important question on a home buyer’s mind is probably the tenure of the property. There are generally two types of tenure in Singapore: Ninety-nine-year leasehold and freehold. For all practical purposes, the 999-year leasehold property is considered to be the same as freehold because the difference in their values is negligible and banks will not impose any loan...
One sure indicator of a red-hot property market is the way 99-year homes are being snapped up. Their prices are also skyrocketing faster than freehold units. In the past, most home buyers would give leasehold homes the snub, thinking that freehold ones are superior in terms of long-term value. A freehold title allows the homeowner to have perpetual ownership of the property, while a leasehold title...
Why are freehold properties preferred to leasehold properties? Given that the current median life span in Singapore stands at 81.4 years, a 99-year leasehold property, whose ownership reverts to the State after this period, offers a more than adequate home for any one generation. But setting aside owner-occupation, if you expect your property to be an investment for wealth preservation or a legacy for...
WHICH gives you better returns in terms of capital gains? Freehold or leasehold? Neither really. The evidence is inconclusive. Some years back, I made several comparisons. Depending on the period analysed or property cycle selected, you can declare one better than the other. What this really means is: You do get what you pay for. There is some confusion in the market which only benefits unscrupulous...
So when will freehold condo prices fall to match those of leasehold? FREEHOLD condominium ownership is no longer forever in Singapore, yet the myth of freehold property being held in perpetuity and resultant higher pricing linger on. While it may seem like Singaporeans will have a hard time letting the myth go, it may only be a matter of time until logic overcomes emotion and premiums for freehold condos...