Spotting Opportunities: What Agents Need to Know About Leasehold vs Freehold Trends

Recent market analysis shows leasehold condos gaining ground on freeholds—and at times even outperforming them.

The typical 15–20% price premium for freeholds has narrowed—and in some cases reversed—as leasehold assets, especially those near MRTs, have outperformed.

Why Leaseholds Are Rising

• Transaction volume and newer leasehold launches near MRTs are fueling price growth.
• Studio condos near key stations like Katong Park and Serangoon have sometimes outperformed freeholds in median profits.

Value Over Time & Age Factor

A study by NUS reveals that as leasehold properties age, their price decay accelerates, widening the gap relative to freeholds. Yet, over time, older leaseholds can stabilise and yield returns comparable to freeholds due to diminishing long-term discount rates

For example, Aspen Heights (freehold) and The Quayside (leasehold), both launched in District 9, saw their price gap narrow during market growth but diverge after 15 years (Figure 1). 

Figure 1: The difference between freehold and leasehold condominium 

Source : REALIS 

Takeaways for Agents

• Focus on leasehold owners with 10+ years of tenure—now is a prime moment to sell as premiums compress.
• Use data to illustrate how lease decay impacts returns—educate clients about timing that preserves equity.

Summary Snapshot