Leasehold vs Freehold Condos in Singapore: What’s the Difference?
Last updated: 29 Aug 2025 • by CondoListing.sg
One of the first questions condo buyers ask in Singapore: Should I buy a leasehold or freehold condo? This guide explains the key differences, pros & cons, and how it affects value, financing, and lifestyle.
1) Leasehold vs freehold: definitions
In Singapore, property ownership is governed by the Singapore Land Authority (SLA). Titles fall into:
- Leasehold (99-year / 999-year) – you own the property for a fixed number of years. At expiry, ownership reverts to the State unless the lease is extended.
- Freehold (Estate in perpetuity) – ownership has no expiry. Sometimes marketed as “999-year leasehold”, which is practically equivalent to freehold.
2) What is a 99-year leasehold condo?
Most new launch condos in Singapore are sold on 99-year leases. Developers buy State land from URA under Government Land Sales (GLS) with a 99-year tenure (URA GLS programme).
Key points:
- Lower entry price vs freehold
- Higher supply in market (majority of launches are leasehold)
- Value may decline as lease ages, especially below 60 years (MoneySense: lease decay)
- Financing restrictions kick in when remaining lease < 30 years
See our guide to new launch vs resale condos for how leasehold factors into your decision.
3) What is a freehold condo?
A freehold (or 999-year) condo means perpetual ownership. These are rarer because the government releases very little freehold land.
Key points:
- Higher purchase price vs leasehold
- Strong long-term value retention (no lease decay)
- More attractive for legacy planning (inheritance)
- Often boutique projects with fewer units
But remember, maintenance fees apply regardless of tenure — see our condo maintenance fees guide.
4) Pros & cons compared
| Leasehold (99-yr) | Freehold | |
|---|---|---|
| Price | Cheaper entry price | More expensive |
| Value retention | Declines with lease decay | Retains long-term value |
| Rental yield | Often higher (lower entry) | Usually lower yield |
| Legacy / inheritance | Limited lifespan | Can be passed down indefinitely |
| Supply | Majority of launches | Scarce, mostly resale |
5) Impact on value & financing
Banks and CPF rules restrict financing for ageing leasehold condos:
- For CPF usage, lease must last until youngest buyer is 95. See CPF Board rules.
- For bank loans, properties with lease < 30 years left cannot be financed (MAS mortgage rules).
This is why older leasehold units tend to drop sharply in value after 40–50 years. Buyers focused on lifestyle may still prefer them — see life in a Singapore condo for how facilities matter.Besides tenure differences, buyers should also be aware of Executive Condominiums (ECs), which blend public and private housing rules.
6) Who should buy leasehold vs freehold?
- Investors: Leasehold condos often offer higher rental yields due to lower entry cost.
- Legacy buyers: Freehold is better if you want to pass property to the next generation.
- Foreigners: Both are available, but remember ABSD 60% applies — see our foreigners buying guide.
- First-time buyers: Consider affordability first — read our step-by-step condo buying guide.
Also weigh new vs resale factors — see new launch vs resale condos.Whether you buy leasehold or freehold, the upfront costs are similar — see our breakdown on how much cash you’ll need.”
7) FAQ
Is freehold always better than leasehold?
Not always. Freehold has long-term value, but leasehold may give better short- to mid-term rental yields.
Can foreigners buy freehold condos?
Yes — foreigners can buy both leasehold and freehold non-landed condos. Landed remains restricted (see SLA rules).
What happens when a 99-year lease runs out?
The land reverts to the State unless an en-bloc renewal or lease top-up is granted by SLA/URA. See SLA’s lease renewal page.
Is a 999-year lease the same as freehold?
Practically yes. Market treats 999-year leasehold as equivalent to freehold.