Is buying a 10-year-old leasehold property the most expensive option

A 10-year-old leasehold property in Singapore is generally not the most expensive segment compared to newer leasehold properties. The most expensive prices for leasehold properties are typically seen in brand new launches or properties less than five years old, largely because they offer the longest remaining lease and are often equipped with the latest facilities and designs.

As a property ages, particularly after 10 years, the value appreciation tends to slow down due to the reduction in remaining lease, often referred to as lease decay. However, a 10-year-old leasehold property can still command a premium over significantly older leasehold properties, but is normally valued lower per square foot than its brand-new counterparts.

It is important to note that many leasehold properties in Singapore have shown price growth over their first ten years, but this growth rate flattens as the lease shortens further. Buyers prioritizing the longest remaining lease tend to pay the highest prices for properties as close to newly completed or launched as possible. Therefore, if your aim is to seek the peak price point, properties younger than 10 years, especially those just completed or still under construction, usually represent the most expensive bracket for leasehold properties.