Is the Freehold Premium Still Worth Paying in 2026?

The freehold premium — the price gap between a freehold and an equivalent leasehold in the same area — has always existed in Singapore. The question is whether it's justified for the home you're looking at. Here's how we judge it.

The premium varies by area

In the prime districts, where almost no new freehold land comes up, a bigger premium is easier to defend. Scarcity holds value there.

In the suburbs, where most buyers live in their own homes and there are plenty of new 99-year condos to choose from, the same premium is harder to justify. You're paying for tenure that won't make much difference if you sell in the next ten years.

Where the premium earns its keep

The freehold premium makes sense when the surrounding area has limited remaining freehold land — scarcity holds value. It also makes sense when the district has strong rental demand, because yield supports the higher entry price. And it makes sense when you're buying for the long hold — 15+ years — where the leasehold decay curve starts to matter.

Where it doesn't

The premium gets stretched when developers price new freehold launches at parity with — or above — prime 99-year projects in better-located areas. This happens most in the suburbs, where a freehold launch in a quiet pocket can cost as much per square foot as a 99-year project next to an MRT station or a popular school.

In those cases, you're paying extra for tenure on land that doesn't command it.

The bottom line

The freehold premium is worth paying when it's modest and the location supports it. When it's large in an area where leasehold homes sell just as easily, you're paying for a label, not an advantage. Compare the psf with similar 99-year condos nearby, or send us the two you're weighing and we'll do it for you.