Freehold vs leasehold property in Singapore: what should buyers know?
Tenure is one of the first labels you'll see on any Singapore property listing. It tells you how long the ownership lasts, and it affects price, financing and how the property holds its value over time.
The three main types
| Tenure | What it means |
|---|---|
| Freehold | Ownership with no expiry date. |
| 999-year leasehold | A lease so long it is treated much like freehold in practice. |
| 99-year leasehold | Ownership for 99 years from the start of the lease, after which the land returns to the State. Most new launches on Government Land Sales sites, and all HDB flats, are 99-year leasehold. |
Price
Freehold homes usually cost more per square foot than comparable 99-year leasehold homes in the same area. How big that premium is depends on location, age of the building and market conditions. In established districts, a new 99-year leasehold development can sometimes be the only way to buy a brand-new home near an MRT station.
How value changes over time
A 99-year lease loses value gradually as it runs down. The effect is usually modest in the early decades and becomes more noticeable as the remaining lease gets shorter. Freehold properties don't face this countdown, although the building itself still ages. Many buyers of new 99-year developments plan around the first 20 to 30 years of the lease, when this effect is smallest.
Financing and CPF
Remaining lease matters when you buy an older leasehold property. CPF rules link how much CPF you can use to whether the remaining lease covers the youngest buyer to age 95. Banks also look at the remaining lease when deciding how much to lend. This rarely matters for a new 99-year launch, but it's important when buying a resale unit with a short remaining lease.
En bloc potential
Older developments on large plots, both freehold and leasehold, sometimes attract collective sale offers from developers. En bloc sales can't be counted on, but they are one reason some buyers look at older freehold projects.
So which is better?
Neither is better for everyone. Freehold suits buyers who want to hold for a very long time or pass the home on. A new 99-year leasehold can give better value today, a newer building and a better location for the same budget. Dunearn House, for example, is a 99-year leasehold development in District 11 whose lease started in 2025, a 4-minute walk from Sixth Avenue MRT.
The right answer depends on your holding period, budget and plans. See also 7 things to consider before you start.
General information only, not financial or legal advice. Check CPF Board's rules on property purchase for your own situation.
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