Generally there are two types of property term in Singapore.Freehold properties hold several advantages over the leasehold property : higher en-bloc possible, slower pace of depreciation and no restrictions on the use of Central Provident Finance for home buying.
Now a days, new leasehold condominiums appear to have dominated the marketplace. The proportions connected with new leasehold and also freehold condominium product sales stand at 95 percent to 5 percent respectively as of first 1 / 2 of 2013. In contrast, back in 2006 and also 2007, around 70 percent of new product sales were freehold. This may be attributed to the ramp-up on the government land sales programme in recent days and the tightening up of en- bloc principles in October 2007.
So Finally, which one is much better, freehold or leasehold? While using analysis, the answer depends upon whether one is purchasing a landed or non- landed property. If purchasing a landed property, historical data implies that freehold might be considered a better choice. If one is purchasing a leasehold non-landed property in this up cycle, given the challenging en-bloc market place, leasehold could help to lock in additional percentage gains if it is bought and sold for the right time.
