Singapore properties are either freehold or leasehold. The common question is: which one is better?
Freehold properties in Singapore are termed as “Estate in Fee Simple” or “Estate in Perpetuity”. They are basically the same thing.
Leasehold properties are usually 99 years or 999 years. Industrial buildings are usually issued only 30-year leasehold. A 99-year leasehold means the property reverts to the government after 99 years. In Singapore, a leasehold property may be acquired under an enbloc sale to renew its lease and redevelop into a new building, usually with higher density.
Traditionally, freehold properties are favored over leasehold properties due to perpetual ownership. However, with recent enbloc sales where home owners were able to profit from the acquiring developers, leasehold properties are gaining popularity.
In addition, freehold properties tend to be in less central locations. For example, any building near an MRT station would usually be leasehold. In terms of pricing, freehold tends to command a slightly higher price per square foot (PSF) than leasehold, although it may not be a like-for-like comparison due to the difference in location and other factors.
New plots released by the Singapore government now have a maximum of 99-years leasehold. There are still existing and new developments built on previously acquired land that are freehold. But going forward, the proportion of freehold properties in Singapore will decrease.
Whether you are looking for a freehold or leasehold property in Singapore, contact a
Professional Accredited Singapore Property Agent (Real Estate Salesperson) for advice and assistance.