Freehold property is owned indefinitely; leasehold property returns to the state when the lease ends. Freehold usually costs more per square foot. For leasehold, shorter remaining leases can limit bank loans and CPF use, and may weaken resale demand.
† marks a figure we have not confirmed yet. Check the official source before relying on it.
Tenure types
- Freehold: no expiry.
- 999-year leasehold: treated much like freehold in practice.
- 99-year leasehold: common for new launches and HDB; value tends to fall as the lease shortens †.
Lease decay
CPF Board needs at least 20 years of lease left before you can use CPF savings, and CPF use is pro-rated if the lease does not cover the youngest buyer to age 95. Banks also tighten lending on short leases, often with a lower loan-to-value or a shorter tenure, and each bank sets its own cut-offs. Check the remaining lease against your loan tenure and your exit plan.
How to choose
If you plan to hold long-term or leave the home to heirs, freehold's premium may be worth it. If you plan to sell within 10 years, location and price per square foot often matter more than tenure.
Sources to check
Frequently asked questions
Is freehold always a better investment?
Not always. It costs more upfront. Whether the premium pays off depends on location, holding period and resale market.