Is Freehold Still Worth Buying in Singapore’s Property Market Today?
Introduction
In Singapore’s property market, freehold homes have long carried a sense of prestige and permanence. The idea of owning a property without a fixed lease expiry continues to appeal to many buyers, particularly those thinking long term or purchasing a home to hold across generations. However, as the market evolves and leasehold developments become increasingly well-located and competitively priced, it is natural to ask whether freehold properties are still worth paying a premium for today.
This question does not have a universal answer. Whether freehold makes sense depends on how you intend to use the property, where it is located, and how it compares to available leasehold alternatives in the same market segment.
What Does Freehold Really Mean in Singapore’s Property Context?
In Singapore, a freehold property grants ownership of the land and building without a defined lease expiry, unlike leasehold properties that typically run for 99 years or less. In theory, this means the asset does not depreciate towards zero over time in the same way a leasehold property does.
That sounds powerful — until you look at how Singapore actually works.
Singapore is land-scarce and heavily planned. Even freehold land can be acquired by the government for public use under the Land Acquisition Act. Owners are compensated at market value, but freehold does not mean the property will exist forever in its current form.
More importantly, buildings age regardless of tenure. A 50- or 60-year-old freehold condominium still faces lift failures, outdated layouts, rising maintenance costs, and declining appeal to buyers and tenants. Freehold does not stop physical obsolescence. It only removes lease expiry as an additional pressure point.
The real advantage of freehold is optionality. You can hold the property indefinitely without worrying about lease decay affecting financing or resale later on. That advantage matters only if you genuinely plan to hold the property for several decades or across generations.
If you do not, the benefit remains largely theoretical.
Why Freehold Properties Historically Attracted a Premium
Freehold properties used to dominate Singapore’s prime districts — especially Districts 9, 10 and 11 — because of historical land ownership patterns dating back to colonial times. This created a long-standing association between freehold and prime location, even though the two are no longer inseparable today.
Freehold also appealed strongly to families focused on legacy planning. A freehold home bought in the 1970s could still be owned by the same family today without lease decay. Banks historically preferred freehold as well, offering more favourable financing terms in the past.
These factors reinforced one another and entrenched the idea that freehold was “safer”, “better”, and more prestigious.
That logic made sense when most leasehold properties were either suburban or government-driven developments. It makes far less sense today.
How the Current Market Has Changed the Freehold vs Leasehold Debate
Today’s property market looks very different from even 15 years ago.
Most new developments — including those in prime districts — are now 99-year leasehold, because almost all developable land is released through the Government Land Sales programme. Freehold land is increasingly limited to small infill sites, older developments, or former en-bloc plots.
This has flipped the traditional equation.
Some of the best-located homes in Singapore today are leasehold — directly above MRT stations, integrated with malls, or next to employment hubs. Meanwhile, many freehold developments sit on quieter, less connected sites simply because that is where freehold land still exists. In practice, this means buyers often pay a freehold premium and accept inferior convenience.
For most modern households, daily life matters more than tenure. Saving 30 to 40 minutes of commute time every day, walking to MRT, or having amenities downstairs delivers real value that tenure alone does not.
For properties with 60 to 70 years of remaining lease or more, banks treat leasehold and freehold very similarly. For realistic holding periods, financing is no longer a meaningful differentiator.
Does Freehold Still Offer Better Long-Term Value Today?
Sometimes — but not often. Freehold still makes sense in specific situations:
Multi-generational holding in supply-constrained areas.
If you are buying in places like Bukit Timah or parts of Holland, genuinely intend to hold for decades, and freehold supply is truly limited, tenure adds real value.
Ultra-high-end CCR purchases.
For buyers purchasing $15–30 million properties, freehold often functions as a prestige marker rather than a financial decision. The premium is immaterial relative to overall wealth.
Freehold sites with redevelopment potential.
Older freehold developments on prime land can benefit from collective sale potential, adding a layer of optionality leasehold properties usually lack.
Outside these cases, freehold offers little practical advantage for most buyers. For a buyer holding 10 to 15 years, a well-located leasehold property will often outperform a poorly located freehold one. Lease decay only becomes relevant when remaining tenure drops below roughly 60 years — a non-issue for new leasehold purchases today.
When Freehold Makes Sense — and When It Doesn’t
Freehold makes sense if you are genuinely planning for very long-term ownership, are not stretching financially, and are buying in an area where freehold is both rare and desirable. It also makes sense if you value permanence emotionally and can afford that preference without sacrificing location, size, or financial safety.
Freehold does not make sense if you are stretching your budget to afford it, giving up significantly better location or convenience, or planning to sell within 10 to 15 years. In those cases, you are paying for a benefit you are unlikely to ever realise.
The opportunity cost matters. A $400,000 premium could fund a larger unit, children’s education, or financial buffers that improve your life far more tangibly than tenure.
How Location, Supply, and Buyer Profile Matter More Than Tenure Alone
Tenure is only one part of the decision. Location, surrounding infrastructure, and buyer demand ultimately determine how a property performs over time. In areas undergoing transformation or supported by new transport links, leasehold developments often benefit from sustained interest and liquidity.
Your buying profile also matters. A family purchasing for own stay may prioritise schools and amenities, while an investor may focus on rental demand and exit liquidity. In both cases, the relevance of freehold tenure varies based on individual objectives.
How You Should Think About Freehold When Choosing a New Condo Today
Tenure is just one variable — and often an over-weighted one.
Location fundamentals drive value far more than tenure. A leasehold home next to MRT, schools and amenities will outperform a freehold home that is less accessible over any realistic horizon.
Supply matters too. In areas with continuous new launches, even freehold homes face competition from newer leasehold alternatives. In supply-constrained mature estates, both leasehold and freehold homes perform well.
Most importantly, your actual holding period determines what matters. If you expect to sell within a decade, tenure is largely irrelevant. Buyers and banks care far more about remaining lease and liveability than whether a title says “freehold”.
So, Is Freehold Still Worth Buying in Singapore?
Freehold property is still worth buying in Singapore — but only when it fits your goals, budget, and time horizon. It is no longer a guaranteed advantage on its own. In today’s market, thoughtful comparison and clear priorities matter more than tenure labels.
Understanding why you want freehold, and what you are willing to trade off for it, is far more important than following conventional wisdom. The best choice is the one that aligns with how you plan to live in, hold, or eventually exit the property.
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