Freehold vs 99-Year Leasehold: Which is Better for Property Buyers?

When choosing a property in Singapore, one of the first decisions buyers face is whether to go for a freehold development or a 99-year leasehold. Both options have their own advantages, and the right choice often depends on your goals.

To start, freehold properties are often seen as more desirable because ownership is permanent. Buyers can pass them down through generations without worrying about the lease running out. This long-term value makes freehold homes attractive for legacy planning and for those who want peace of mind. Naturally, freehold properties tend to be priced higher, reflecting their scarcity in Singapore’s land market.

Freehold vs 99-year leasshold

On the other hand, 99-year leasehold properties remain popular due to their affordability and accessibility. Most government land sales are leasehold, which means there is often a wider choice of new launch condos available in this category. Leasehold projects are also typically located closer to MRT stations or prime amenities, making them convenient and appealing for younger families and investors who prioritize lifestyle and rental potential.

From an investment standpoint, leasehold projects can offer better rental yields since the entry price is lower. However, their value may taper off once the lease runs down, especially when less than 60 years remain. Freehold properties generally hold value better in the long run, though short-term rental yields may be lower due to the higher upfront cost.

In the end, the decision between freehold and leasehold comes down to priorities: choose freehold if you value legacy and long-term security, or go for leasehold if affordability, convenience, and rental opportunities are higher on your list.