Written by: Clara Grace Lim & Christine Sun, Research Team

Estimated Read Time: 4 minutes

We all dream of owning a place that’s ours for good—a freehold condo to pass down through generations. 

Freehold properties have long been regarded as the pinnacle of real estate in Singapore. But lately, leasehold condos have been gaining popularity, and there’s a reason for that.

1. The Changing Landscape

Historically, freehold properties commanded higher prices—up to 20% more than leasehold units. However, with a shrinking supply of freehold condos, many new developments are being built on leasehold government land, which often comes with excellent perks like proximity to MRT stations, shopping malls, and top-tier amenities. These features are making leasehold properties increasingly appealing to homebuyers.

Today, convenience is king. Everyone wants to be close to everything—whether it’s a favourite café, gym, or school. Buyers are now willing to trade the perpetual ownership of a freehold condo for the benefits of location and amenities offered by leasehold properties.

2. Leasehold properties are becoming pricier

Over the past decade, the price difference between freehold and leasehold condos has significantly narrowed. Now, prices of leasehold properties are even higher than freehold!

In 2014, freehold condos were 21% more expensive than leasehold condos. However, by 2024, leasehold properties are now 4% pricier than freehold! This reversal of gap price reflects how buyers are valuing lifestyle and convenience over tenure.

3. Location Matters

Location has always been a major factor in property prices, and it’s no different when comparing freehold and leasehold condos. In the past, freehold condos in many parts of the island consistently commanded a premium. However, prices of leasehold condos in the city fringe and suburbs are fast catching up in recent years. 

For example, leasehold condos in the city fringe (Rest of Central Region - RCR) now cost 22% more than freehold condos. Even in the suburbs (Outside Central Region - OCR), leasehold condos are priced 9% higher than freehold units. These shifts show that buyers are willing to pay more for leasehold condos in areas with better connectivity and amenities.

4. Rising Demand for Leasehold

There’s a clear trend toward more expensive leasehold condos. 

The number of leasehold condos sold for $3 million or more in the city fringe jumped significantly over the past decade —from 61 units in 2014 to 647 units in 2024. 

In the suburbs, the number of leasehold condos sold for over $2 million also spiked from 66 units to nearly 2,115 units in the same period.

This surge in demand reflects how the value of leasehold condos has surged in both the suburbs and city fringe, driven by both buyers and investors looking for strong returns.

5. Profitability: Leasehold Leads

Leasehold condos are proving to be more profitable for many buyers. According to our study, leasehold properties have a 93% chance of yielding a profit compared to just 69% for freehold condos. The numbers are even higher for leasehold condos in the city fringe at 96% and suburban areas at 93%).

In terms of average profits, leasehold condos in the city fringe racked in a gross profit of $214,676, compared to $123,348 for freehold units. In the suburbs, a similar trend can be seen, with leasehold condos making $192,882 on average, while freehold condos see $130,526 in profit. 

Even in prime locations, leasehold condos are more profitable for most buyers at 73% for leasehold condos, compared to 58% for freehold units.

6. Looking Ahead

The rising demand for leasehold condos is expected to continue, especially as the government releases more prime land in the city fringe and suburbs. Moreover, many Singaporeans start their property journey with a leasehold HDB flat, so it makes sense that they’re more comfortable with leasehold condos when they upgrade to a private property.

That said, freehold properties in prime locations are highly attractive to buyers seeking long-term value and stability. Freehold condos still offer the security of indefinite ownership, which some buyers are willing to pay a premium for.

7. Final Thoughts

Whether you’re eyeing a freehold or leasehold condo, both options have their merits. Freehold condos offer a sense of long-term stability, while leasehold properties prove to be a smart choice for those who prioritize location, amenities, and strong returns on investment.

Ultimately, it’s all about your investment goals.