reporter2
03-02-22, 09:48
ANALYSIS: Does age matter? Impact of ageing on freehold and leasehold condos
Edgeprop Singapore
January 28, 2022
SINGAPORE (EDGEPROP) - What’s the impact of ageing on different types of condos? Do freehold condos hold better value? Does location matter?
A thorough analysis using our Market Trend tool indicates a growing gap in the overall average price for freehold and leasehold condominiums as they age. Table 1 below shows the average price of freehold and leasehold condominiums of different ages in 2021. We also compared the average prices of older condominiums against similar new condominiums and compiled the difference.
NOTE: Data for en-bloc sales have been excluded from older condominiums to prevent skewing the average prices. The average prices in the tables below are for condominium units of all sizes including older condominium units which are generally larger in size and hence may have a lower price on a per square foot basis.
https://i.imgur.com/fqR8Qqo.png
The difference in average prices between new and older condominiums is about the same for the first 20 years but a sharper difference is observed for leasehold condominiums thereafter. This is because the tenure for leasehold developments has an expiry date and hence is deemed to have less value as they age.
However, freehold does not always mean that the property belongs to the owners and their descendants forever. If the property is successfully sold via en-bloc, owners would have gained a windfall but at the expense of a property that they thought was theirs forever.
Read more at: https://www.edgeprop.sg/property-news/analysis-does-age-matter-impact-ageing-freehold-and-leasehold-condos
Edgeprop Singapore
January 28, 2022
SINGAPORE (EDGEPROP) - What’s the impact of ageing on different types of condos? Do freehold condos hold better value? Does location matter?
A thorough analysis using our Market Trend tool indicates a growing gap in the overall average price for freehold and leasehold condominiums as they age. Table 1 below shows the average price of freehold and leasehold condominiums of different ages in 2021. We also compared the average prices of older condominiums against similar new condominiums and compiled the difference.
NOTE: Data for en-bloc sales have been excluded from older condominiums to prevent skewing the average prices. The average prices in the tables below are for condominium units of all sizes including older condominium units which are generally larger in size and hence may have a lower price on a per square foot basis.
https://i.imgur.com/fqR8Qqo.png
The difference in average prices between new and older condominiums is about the same for the first 20 years but a sharper difference is observed for leasehold condominiums thereafter. This is because the tenure for leasehold developments has an expiry date and hence is deemed to have less value as they age.
However, freehold does not always mean that the property belongs to the owners and their descendants forever. If the property is successfully sold via en-bloc, owners would have gained a windfall but at the expense of a property that they thought was theirs forever.
Read more at: https://www.edgeprop.sg/property-news/analysis-does-age-matter-impact-ageing-freehold-and-leasehold-condos