Freehold vs Leasehold Properties: 2025 Price Trends at a Glance
If you are choosing between a freehold property and a 99 year lease condo in Singapore, 2025 data suggests a clear pattern: leasehold homes often give stronger short- to mid‑term returns thanks to lower entry prices, while freehold value shines more for legacy, holding power and very long horizons.[1][2]
This cluster guide zooms into Freehold vs Leasehold Properties: Price Trends and Market Analysis, and links back to our main pillar article Freehold vs Leasehold Properties in Singapore: Homejourney 2025 Guide Freehold vs Leasehold Properties in Singapore: Homejourney 2025 Guide . On Homejourney, we prioritise verified data, user safety and transparent explanations so you can decide with confidence, whether you are a first‑time buyer, upgrader or investor.
Key Concepts: Property Tenure in Singapore
Before looking at price trends, it is critical to understand what property tenure Singapore terms actually mean in practice.
Freehold vs leasehold: simple definitions
In Singapore, most private homes are either freehold (including 999‑year lease which is effectively treated as freehold in the market) or 99 year leasehold.[6] HDB flats are almost all 99‑year leasehold.
- Freehold property: The land and building are owned indefinitely. There is no fixed expiry date on the title.
- 999‑year leasehold: Technically leasehold but so long that it is priced and perceived similarly to freehold.
- 99 year lease: You own the right to use the property for 99 years from the lease start date. After that, it reverts to the state unless renewed.
On the ground, when I walk older estates like Tanjong Rhu or Holland area, agents and residents often simply say “freehold” when they mean freehold/999‑year, because resale buyers usually price them in the same bracket.
Why tenure matters for banks and CPF
The remaining lease affects how much loan you can get and how much CPF you can use. MAS and CPF rules tighten financing once the remaining lease dips below key thresholds (for example, if the lease does not cover the youngest buyer to age 95, there are CPF usage limits).[1] This is why a 40‑year‑old buyer looking at a 60‑year‑old 99‑year leasehold project in Queenstown must check lease balance carefully on URA/HDB before committing.
Banks also become more conservative once remaining lease drops below 60 years; below 30 years, most banks will not lend at all, and you are effectively in an all‑cash market with depressed valuations.[1]
Price Gap: How Much More Does Freehold Cost in 2025?
Across Singapore, a key question is: what is the freehold value premium over 99‑year leasehold in 2025?
Average price premium by region
Recent 2025 benchmarks show that freehold condos on average command a 10–20% price per square foot (psf) premium over 99‑year leasehold, with the highest premiums in prime central areas.[1][2]
*Figures are 2025 market benchmarks, rounded for clarity.[1]
This matches URA’s broader observation that non‑landed prices continue to rise, especially in RCR and OCR where many 99‑year projects are launched.[3] In daily viewings around Tampines and Sengkang, it is obvious: many newer leasehold condos there can be 10–20% cheaper per square foot than older freehold units nearer town, yet monthly instalments are far more manageable for young families.
How the premium affects your monthly cost
Even a 10–15% higher price means a significantly larger loan and monthly repayment. On a $1.5 million 99‑year leasehold condo versus a 15% more expensive $1.725 million freehold equivalent, the extra $225,000 can translate into several hundred dollars more in monthly instalments over a 25‑ or 30‑year tenure, depending on bank rates and LTV.[1] You can test these scenarios using Homejourney’s financing tools and latest bank packages Bank Rates .
Freehold vs Leasehold: 10‑Year and Long‑Term Price Performance
The next question many Homejourney users ask is: which tenure actually performs better over time?
2014–2024 data: leasehold edges out in 10‑year growth
A decade of URA‑based condo data (2014–2024) analysed by independent researchers shows that while the psf gap between freehold and leasehold widened slightly, 99‑year leasehold condos recorded marginally higher annualised percentage growth over around ten years.[2]
The main reason: freehold starts 15–20% higher, so it has less “runway” for percentage gains, while more affordable leasehold projects in up‑and‑coming areas (e.g. Punggol, Sengkang, parts of Bukit Batok) can benefit strongly from new MRT stations, malls and schools.[1][2]
For example, during the 2016 upswing, leasehold condos recorded around 13.99% price growth versus just 0.98% for freehold in that year, and even after the post‑pandemic run‑up (2022–2023), leasehold annualised gains approached or exceeded 10% in some segments.[2]
Long‑term and older projects: when freehold value shows
Over longer periods and especially for older developments, freehold can hold value better as lease decay kicks in for 99‑year projects. Case studies comparing older 99‑year condos like Pine Grove to nearby freehold neighbours show that once remaining lease drops, price resistance appears.[9] Buyers start to worry about financing, CPF usage, and future resale pool.
On the ground, you can see this clearly in older leasehold clusters around Holland, Clementi and Bukit Timah. Buyers walk out of showflats asking: “How many years left on the lease?” When they realise there are only 55–60 years remaining, negotiations become tougher, even if the unit is spacious.
2025 Market Context: Cooling Measures, Rates and Buyer Behaviour
Any analysis of Freehold vs Leasehold Properties: Price Trends and Market Analysis must consider 2024–2025 macro conditions.
Overall price momentum
URA’s Property Price Index for private homes rose about 3–4% year‑on‑year into 2025, with non‑landed condos leading growth and OCR/RCR new launches providing much of the volume.[3][8] Analysts expect similar moderate growth of 1–4% for 2025 as cooling measures and higher mortgage rates cap exuberance.[3][8]
For buyers visiting launches along the Thomson‑East Coast Line or Jurong Regional Line corridors, developers are pricing new 99‑year projects at levels that reflect strong accessibility and limited supply. This narrows the psychological gap between “prime freehold” and “well‑located leasehold”.
Cooling measures and affordability
Since 2021, several rounds of cooling measures have tightened Loan‑To‑Value (LTV), Total Debt Servicing Ratio (TDSR)
