Compare the price trend for leasehold resale condos versus freehold resale condos over the last 20 years

Over the last 20 years in Singapore, both leasehold and freehold resale condos have seen significant price appreciation, but leasehold condos have generally experienced faster growth in percentage terms, narrowing the historical price gap between the two tenures.

Since 2001, leasehold non-landed condo prices increased by approximately 208%, compared to a 176% increase for freehold counterparts. This faster appreciation for leasehold units led to a shrinking price premium for freehold condos. For example, in 2013, freehold resale condos cost about 20% more than leasehold condos, but by 2023 this premium dropped to as little as 4.7% islandwide. The main reason for this convergence is the strong price growth in leasehold developments and continued demand for well-located and newer projects.

However, in prime areas (such as the Core Central Region), the price difference has widened in recent years because buyers still value the perpetual tenure of freehold properties in these locations. While leasehold condos often feature modern amenities and may be more affordable at entry, freehold condos retain appeal particularly for long-term holding or for certain investment strategies.

Overall, investors considering historical trends should note that while freehold condos are traditionally seen as more desirable and have higher prices, leasehold condos have delivered comparable or even superior price growth in the last two decades due to their relative affordability and strong demand, especially for newer launches.