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 currently justified. We looked at five districts where both freehold and leasehold condos are actively transacting. Here's what we found.

The premium varies wildly by district

In District 9 (Orchard/River Valley), freehold condos are transacting at roughly 15–20% above comparable leaseholds. Given the scarcity of freehold land in that corridor, we think that's defensible.

In Districts 18 and 27, we're seeing freehold premiums of 8–12% over fresh 99-year leaseholds. In areas with less rental demand and where most buyers are own-stay, that premium is harder to justify — you're paying for tenure that doesn't materially affect your exit in the near term.

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. We've seen this in the Outside Central Region, where freehold new launches are priced at $1,800–2,000 psf against 99-year projects in more sought-after OCR sites.

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

The bottom line

The freehold premium is worth paying when it's modest (under 15%) and the fundamentals support it. When it blows past 20% in districts where leasehold products are equally liquid, you're paying for a brand, not an asset advantage. Run your own comparison — or ask us to.