Freehold vs 99-Year Leasehold Property in Singapore: Which Is the Better Choice?

Why Freehold vs 99-Year Leasehold Matters in Singapore

If you are buying property in Singapore, one of the first questions you will face is whether to choose a freehold or a 99-year leasehold property. This decision affects not just the purchase price, but also long-term value, financing, resale demand, and legacy planning.

For many buyers—homeowners and investors alike—understanding the difference between freehold and leasehold properties helps avoid costly mistakes and ensures the property aligns with long-term goals.

What Is a Freehold Property?

A freehold property gives you ownership of the property for an unlimited period. There is no expiry date on the land tenure.

In Singapore, freehold properties are relatively rare and are usually located in mature or prime districts.

Key Characteristics of Freehold Properties

• No lease expiry

• Often seen as legacy assets

• Limited supply in Singapore

• Generally higher entry price

Many buyers view freehold homes as assets that can be passed down to future generations without worrying about lease decay.

What Is a 99-Year Leasehold Property?

A 99-year leasehold property allows ownership for a fixed period of 99 years, starting from the date the lease is granted. Once the lease expires, ownership returns to the state unless extended or renewed (which is not guaranteed).

Most residential developments in Singapore are 99-year leasehold.

Key Characteristics of 99-Year Leasehold Properties

• Fixed lease duration

• Lower entry price compared to freehold

• Common in new launches

• Strong demand for owner-occupiers

Leasehold properties often appeal to buyers who prioritize affordability, modern facilities, and convenient locations.

Freehold vs 99-Year Leasehold: Key Differences at a Glance

Price Difference: Why Freehold Costs More

In Singapore, freehold properties often command a price premium of 10–20% compared to similar 99-year leasehold units.

This premium reflects:

• Scarcity of freehold land

• Perception of long-term value preservation

• Legacy appeal

However, paying more does not automatically mean better returns. Buyers should always weigh price against location, development quality, and future demand.

Financing and Loan Considerations

Banks in Singapore are generally comfortable financing both freehold and leasehold properties, especially when the lease is still long.

What to Keep in Mind

• Older leasehold properties may face stricter loan limits

• CPF usage is affected when lease drops below certain thresholds

• Freehold properties usually retain financing flexibility longer

For buyers planning to hold property for decades, this factor becomes increasingly important.

Investment Perspective: Which Performs Better?

From an investment standpoint, returns are driven more by location and demand than tenure alone.

• Well-located 99-year leasehold properties can outperform freehold homes

• New launches often attract tenants and buyers due to modern layouts

• Freehold properties may offer stronger value retention over very long holding periods

Investors should focus on exit strategy rather than tenure alone.

Lifestyle and Practical Living Considerations

For owner-occupiers, daily living often matters more than tenure.

• Leasehold developments often come with newer facilities

• Maintenance standards may be higher in newer projects

• Freehold properties may be older unless recently redeveloped

Your lifestyle needs, family size, and proximity to work or schools should guide the decision.

Which Option Suits Different Buyer Profiles?

Freehold vs 99-Year Leasehold at Newport Residences

When considering a prestigious development like Newport Residences, the decision goes beyond tenure alone.

Factors such as:

• Prime location

• Quality of development

• Long-term transformation plans

• Rental and resale demand

play a critical role in determining real value, regardless of whether the property is freehold or leasehold.

Final Thoughts: There Is No One-Size-Fits-All Answer

Choosing between freehold and 99-year leasehold property in Singapore depends on:

• Your financial position

• Holding period

• Investment goals

• Lifestyle priorities

A well-chosen leasehold property can outperform a poorly located freehold home—and vice versa.

Speak to an Oriental Realty Property Specialist

At Oriental Realty, making the right property decision starts with understanding your goals clearly.
Whether you are considering a freehold or 99-year leasehold property in Singapore, our experienced property specialists provide clear, data-driven guidance to help you avoid costly mistakes.

Contact Oriental Realty today to discuss your property goals and explore the best options aligned with your needs, budget, and long-term plans.