What is the general price trend of condos over the 99-year tenure? What might be the most profitable period to buy within the 99 years?

The general price trend for 99-year leasehold condos in Singapore can be summarized as follows:

Price Appreciation

• Historically, 99-year leasehold condos tend to appreciate in value over the initial decades of their lease. This is driven by factors such as urban development, infrastructure improvements, and overall demand for housing in Singapore.

Mid-Lease Period

• The mid-period of the 99-year lease, typically around the 20-40 year mark, often sees stable to increasing prices. This is because the property is still relatively new and maintains its appeal, while also benefiting from any surrounding development and infrastructure enhancements.

Price Gap Narrowing

• There has been a trend where the price gap between new and resale condos has started to narrow. For instance, the price difference for leasehold condos peaked at $1,069 psf in 4Q2022 but has since narrowed to a range of $810 psf to $982 psf.

Recent Market Trends

• In recent quarters, private home prices, including 99-year leasehold condos, have seen an upward trend. For example, in 4Q2024, private home prices rose by 2.3% quarter-on-quarter, contributing to a full-year price growth of 3.9%.

Profitable Period to Buy

• The most profitable period to buy a 99-year leasehold condo often depends on market conditions and the specific development. However, generally:
  • Early Stages: Buying during the early stages of a new launch can be profitable as prices tend to appreciate over time.
  • Mid-Lease: Purchasing a condo in the mid-lease period (around 20-40 years into the lease) can also be advantageous, as the property still has a significant portion of its lease left and may benefit from ongoing urban development.
  • Market Downturns: Buying during market downturns or when prices are relatively low can also be a strategic move, as prices tend to recover and appreciate over the long term.

To make informed decisions, it is crucial to use tools available on EdgeProp Singapore, such as the market trends tracker, historical property data, and the Edge Fair Value tool to calculate the fair value of a property.