Leasehold vs Freehold Condo in Singapore: What Buyers Should Know

Tenure is one of the first things buyers ask about a condo, and one of the most misunderstood. Some treat freehold as a must-have; others ignore tenure entirely. The truth sits in between. In the freehold vs leasehold question, whether a condo is 99-year leasehold or freehold affects how its value behaves over decades, how much CPF you can use, and how banks view it when you or a future buyer takes a loan.

This guide explains the difference, the idea of lease decay, how the remaining lease affects financing, why Government Land Sales (GLS) sites are always leasehold, and how buyers of LinkTown Residences (Hougang Central Residences), a 99-year GLS project, should think about it.

Freehold vs leasehold: the basics

You may also see 999-year leasehold. In practice, the market treats it much like freehold because the term is so long. For most new condos outside the core, though, the choice you actually face is a new 99-year project versus an older freehold one.

What lease decay and Bala’s Table mean

A lease is a wasting asset. Each year that passes, the remaining term gets shorter, and eventually it runs out. Lease decay describes how this shrinking term feeds into a property’s value.

The important point is that decay is not a straight line. In the early decades of a 99-year lease, the remaining term feels very long, and value is driven mainly by location, market conditions, the age of the building and supply nearby. As the lease gets shorter, the remaining term starts to matter much more, and the effect speeds up. In Singapore, this curve is often discussed through what is known as Bala’s Table, a valuation reference that maps remaining lease to a percentage of freehold value. We don’t quote its figures here, because how any particular property behaves also depends on the market and the location.

Three practical takeaways:

• Early years: for a new 99-year condo, the lease itself is rarely the main driver of price in the first couple of decades. Location, transport and the wider market matter more.
• Middle years: as a project passes its midpoint, buyers and banks start paying closer attention to the remaining lease, which can narrow the pool of buyers.
• Later years: short remaining leases can limit CPF usage and loan terms for the next buyer, which weighs on demand and price.

Freehold properties don’t face lease decay, but they still age. Buildings wear out, facilities date and newer projects nearby compete for buyers. Freehold protects the land’s tenure, not the building’s condition.

How the remaining lease affects CPF and loans

Tenure matters most in practice when money is involved, both for you and for whoever buys from you later.

CPF usage

You can use your CPF Ordinary Account for a private condo, to pay the part of the down payment beyond the minimum 5% cash, stamp duty by reimbursement and monthly instalments. Usage is capped by the Valuation Limit and the Withdrawal Limit (120% of the Valuation Limit), unless you set aside the Basic Retirement Sum.

The lease rule is the key point here. Full CPF usage requires the remaining lease to cover the youngest buyer until age 95. If it doesn’t, the amount of CPF that can be used is reduced. For a new 99-year launch, this is rarely a concern for most buyers. For an older leasehold resale with a much shorter lease left, it can be. Our guide to using CPF for a private condo covers the rules in more depth.

Bank loans

Private property is financed by bank loans, not HDB loans. Banks consider the property’s remaining lease alongside your age, income and existing debts. With an older leasehold property, a bank may offer a shorter tenure or a lower loan amount, which means more cash upfront. Loans are also based on the lower of the purchase price or the bank’s valuation, so any shortfall must be paid in cash.

This matters when you sell too. If your condo is 40 or 50 years into its lease when you exit, your buyer’s CPF and loan limits become part of your resale story. Our home loan guide for new launches explains TDSR, LTV and loan packages.

CPF and loan rules change from time to time. Check the current rules with the CPF Board and your bank before you buy.

Why GLS sites are leasehold

Government Land Sales sites are state land released for development through public tenders. The state doesn’t sell the land outright; it grants a lease, which for private residential and mixed-use sites is typically 99 years. When the lease ends, the land returns to the state.

This approach lets a land-scarce country recycle land for future needs, whether that is new housing, transport or community use. It also explains why so many new launches outside the core are leasehold: much of the land for new condos comes through the GLS programme.

One detail catches buyers out. The lease generally runs from when the land is awarded to the developer, not from when the condo is completed. For a project that takes several years to build, some of the lease has already been used by the time owners collect their keys. The land award and lease terms for Hougang Central are covered in our land bid analysis.

Is freehold worth the premium?

Freehold usually costs more for a comparable location and unit. Whether that premium is worth paying depends on what you want from the property.

• If you plan to live in it for 10 to 20 years: a well-located new leasehold condo will usually serve you well. The lease has plenty of time left, and you get newer facilities and layouts.
• If you want to pass it down: freehold has a clear advantage over very long horizons, although heirs may still face an ageing building.
• If you are investing: location, entry price and rental demand usually matter more than tenure over a typical holding period.
• If you are comparing old freehold with new leasehold: an older freehold condo may have dated facilities, higher maintenance needs and weaker transport links. Tenure alone doesn’t make it the better buy.

Freehold is also scarce in suburban towns. Most new condos in the north-east, including Hougang, Sengkang and Punggol, are 99-year leasehold.

How LinkTown Residences buyers should think about tenure

LinkTown Residences sits on the Hougang Central GLS site, a mixed-use parcel on a 99-year lease awarded in January 2026. Completion is expected around 2030 to 2031. Here is how to weigh that:

• Compare with other leasehold options: nearby new launches and integrated projects are also 99-year leasehold, so tenure doesn’t set LinkTown Residences apart from its real competitors. Location, integration and price do.
• Value what the site offers: a direct link to Hougang MRT (NE14), the future Cross Island Line interchange, a new bus interchange and a large mall are the kind of attributes that support demand over the long run. Our explainer on integrated developments covers why.
• Check the lease start date: the sales documents should state when the lease began. Factor in the years used before you get your keys.
• Plan your holding period: think about when you might sell and how much lease will remain for your buyer, especially if you expect a long hold.
• Stress-test your finances: tenure won’t limit your CPF or loan on a new 99-year condo for most buyers, but TDSR and LTV still apply.

For a balanced view of the project’s strengths and risks beyond tenure, read our LinkTown Residences review.

This article is general information, not financial or legal advice. Tenure, CPF and loan rules should be verified with the relevant authorities and your bank.

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