Tenure is one of the most debated topics in Singapore's landed property market. Buyers often fixate on freehold as the default preference — but the reality is more nuanced. After closing over 200 landed transactions across both tenure types, here is my honest assessment.
What Do Freehold and Leasehold Mean?
- Freehold: You own the land and property in perpetuity. The most common form is fee simple absolute — you hold the title forever, subject only to government acquisition rights (which exist regardless of tenure).
- 999-year leasehold: Functionally equivalent to freehold for practical purposes. The lease runs so long that it rarely affects valuation or financing within a buyer's lifetime.
- 99-year leasehold: The most common leasehold tenure. The lease begins from the date of the original state grant — not your purchase date. A 99-year property built in 1990 has only ~63 years remaining in 2026.
The Freehold Premium
In Singapore's landed market, freehold properties command a typical premium of 10–20% over equivalent leasehold properties. On a $4M semi-detached, that premium is $400,000–$800,000. Whether that premium is justified depends on your holding period and priorities.
For buyers planning to hold for 10–15 years and pass the property to children, freehold's permanence justifies the premium. For buyers with a 5–7 year horizon who plan to upgrade or liquidate, the premium may not be recovered in capital appreciation — especially in a flat market.
How Tenure Affects Financing
Banks become increasingly conservative as a leasehold property ages. Key thresholds:
- Properties with under 60 years remaining lease: Some banks restrict LTV to 45–55%, significantly increasing cash requirements
- Properties with under 30 years remaining: Most banks will not finance at all
- CPF usage for leasehold properties is capped based on remaining lease relative to buyer's age — you cannot use CPF if the remaining lease does not cover you to age 95
For freehold and 999-year properties, none of these restrictions apply.
The Resale Impact of Ageing Leasehold
A 99-year leasehold terrace built in 1985 has approximately 58 years remaining in 2026. Its buyer pool is narrowing: fewer CPF-eligible buyers, fewer bank financing options, and a smaller pool of investors willing to hold a depreciating lease. Prices on such properties reflect these constraints — which is why they appear cheap on an absolute basis but can be traps for uninformed buyers.
By contrast, a 99-year property built in 2010 still has 83 years remaining — plenty of runway for a buyer planning a 10–15 year hold.
My Recommendation
For most landed buyers in Singapore, I recommend the following framework:
- If the leasehold property has more than 70 years remaining and is priced at a meaningful discount to freehold comparables — it is often a better deal than paying full freehold premium
- If the leasehold has under 60 years remaining — avoid unless you are buying for rebuilding potential or en bloc play
- If you are buying for generational wealth transfer — pay the freehold premium. It is worth it for the next generation's flexibility
Want to assess a specific property's tenure and value? WhatsApp me at +65 8666 6600 and I will give you a direct view.