Can Leasehold Condos Deliver Better Returns Than Freehold? A 10-Year Data Study Says Yes

Is freehold always better? We analysed 10 years of data and found cases where 99-year leaseholds outperformed. Here's what buyers should know.

By Ryan J. Ong

Published 8 May 2025, 8:08 PM SGT · 6 min read · 314

When does a leasehold condo outperform a freehold condo?

In this Stacked Pro breakdown:

We compared 10 years of freehold and leaseholdhttps://stackedhomes.com/freehold-or-leasehold-condo/">leasehold condoef="https://stackedhomes.com/district-15-boutique-condo-profitability-analysis/">condo transactions across resale, sub-sale, and new launches
In shorter time frames, one tenure outpaced the other by over 20%, revealing patterns most buyers overlook
But stretch the timeline far enough, and a surprising reversal happens — with returns most buyers don’t expect

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It’s been drilled into the Singaporean mindset that “freehold is better.” But this is an oversimplified saying that ignores a key fundamental factor: that of time.

99 years is a long time; and it can take many decades before the freehold premium starts to pay off. For those who sell a condo in a short time span, such as within the first decade, freehold status may even be a drawback. In the following study, we look at how long you should hold a freehold condo before it really starts to matter; and we try to pinpoint the age at which a leasehold condo still tends to outperform a freehold counterpart:

Comparing freehold and leasehold properties over the past 10 years

For the following, we compared the price growth of freehold versus leasehold condos from 2014 to 2024.

As is common practice in the property market, we regard 999-year lease projects as being effectively similar to freehold, for these comparisons. We also excluded condos built from 2015 as their inclusion in the dataset will distort prices since newer condos will likely be leasehold as the Government no longer sells freehold land.

Frequently asked questions

Do leasehold condos offer better investment returns than freehold condos?

According to a 10-year data study, leasehold condos, especially new launches, have often delivered stronger short-term gains and can outperform freehold condos during buoyant market cycles.

How does the holding period affect the value difference between freehold and leasehold condos?

The study shows that freehold condos tend to pay off more as projects age, with significant differences in returns becoming evident after several decades. Shorter holding periods may not benefit as much from freehold premiums.

Are freehold condos always a safer long-term investment compared to leasehold?

Not necessarily. While freehold is often seen as more secure for long-term investment, the study indicates that leasehold condos can outperform freehold in the short term, especially during market upswings.

What has been the trend in property prices for leasehold versus freehold condos over the past decade?

Over the past decade, the price gap between freehold and leasehold condos has widened slightly, with leasehold properties showing a higher annualized percentage growth, partly due to their lower initial costs.

Does the age of a condo influence its investment performance?

Yes. Older freehold condos tend to outperform newer ones in absolute dollar terms, and the performance gap between freehold and leasehold becomes more pronounced as properties age.

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Ryan J. Ong

Partner at Stacked

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan’s expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938’s Open House programme underscores his commitment to providing valuable insights into the property market.