Would you pay hundreds of thousands more just for a piece of land that “lasts forever”? In Singapore, that question splits homeowners and property investors into two camps.
On one side are the “freehold forever” folks, the ones who’ll gladly pay a premium just to say “it’s mine for life.” On the other side are the pragmatic buyers who shrug and say, “999 years? That’s basically forever too.” Both aren’t wrong, but there are real differences hiding behind those labels.
In this deep dive, we’ll break down what ownership actually means in Singapore, how value holds up over time, and whether that freehold premium is really worth it.
Understanding property tenure in Singapore
Freehold Ferrell Residences.
Image credit: Lush Home
What does “leasehold” mean?
In case you need a refresher, a leasehold property basically means you’re “buying” the right to live in a home for a set number of years, not full ownership of the land it sits on. Think of it as a super long-term rental.
In Singapore, similar to HDBs, most private condos are sold on 99-year leases. Once that lease is up, ownership reverts to the state or the freeholder.
Now here’s the nuance: for private landed homes on stateland, you can apply to the Singapore Land Authority (SLA) to top up the lease (for example, extending it back toward a full 99 years again) by paying a premium. But this is not guaranteed. Approval depends on whether the application fits the Government’s long-term planning intention, which you can see via the URA Master Plan.
And for private strata homes like condos, things are even more complicated: you typically cannot individually apply to renew or top-up your unit’s lease. Instead, the only realistic path is via a collective sale or en-bloc, where the development as a whole might restructure the lease or sell to a developer who handles the top-up.
What is a freehold property?
Image credit: ERA Singapore
On the flipside, as its name would imply, freehold properties mean that you own both the property and the land it stands on in perpetuity. It’s yours forever… until the government decides otherwise.
While “freehold” sounds like total freedom and ownership, there’s a catch. You can’t exactly dig a tunnel under your condo and build a post-apocalyptic bunker, because it’s still subject to building and planning laws.
And under Singapore’s Land Acquisition Act, the government can still acquire your land for public use. Think MRT lines, expressways, or national development. In those cases, you’ll be compensated at market value, which may or may not feel like a fair deal, depending on your timing and luck.
What about 999-year leaseholds, are they basically freehold?
The Continuum (Freehold), Springleaf Collection (999 years leasehold)
Image credit: The Continuum, Springleaf Collection
In most practical senses, yes.
999-year leases are a legacy from the British colonial era, and properties with such leases are now rare gems. From a valuer or bank’s perspective, a 999-year leasehold is almost indistinguishable from freehold.
If you think about it: if a human lifespan is roughly 80 years, a 999-year tenure stretches across 12 generations. So imagine buying a Springleaf Collection condo in 2028 when it TOPs, your descendants can potentially live there until the year 3027.
That said, it’s not exactly the same. While banks and buyers often treat both tenures similarly, some still place a small premium on true freehold, which is technically called “estate in fee simple”.
It’s less about what you can do with the land, and more about perception, that extra layer of psychological security knowing your ownership doesn’t technically end.
But ultimately, the government can still acquire 999-year leasehold land, just like freehold under the Land Acquisition Act. And since the government has stopped issuing both 999-year and freehold titles, existing ones are now limited and highly sought after.
Land ownership in Singapore
In case you missed the key message: all land in Singapore technically belongs to the state. Developers simply lease the land from the government, usually for however many years depending on the tenure, to build and sell units.
If you own a freehold landed property, then yes, you technically own the land title, and you’re free to landscape your garden or build a koi pond if you want. But otherwise, land is tightly regulated.
Key differences between freehold & 999-Year leasehold
Where the difference starts to show is in value retention over time. A 999-year leasehold that still has, say, 800+ years left is effectively treated as freehold. But one with only 10 years left (from an old colonial grant) will start seeing its valuation drop.
Tenure also influences things like en bloc potential and bank loan treatment, though for most modern buyers, a long 999-year lease is “forever enough.” So yes, freehold is technically permanent, but a 999-year leasehold is close enough to feel that way, at least for the next dozen generations.
Average price premium for freehold in Singapore
We can draw an example of District 15, East Coast. A freehold or 999-year lease now commands an average $2,300 psf, a rough 28% increase in premium from a 99-year average.
While the traditional rule of thumb says freehold properties command a 10–20% premium, the gap has been narrowing if we look at Singapore as a broader whole. This is because many new 99-year condos are built in prime locations near MRT stations, with modern facilities, making them more appealing than aging freehold ones tucked in quieter areas.
Why some families prefer freehold for legacy reasons
For some, buying a freehold isn’t about logic, it’s about legacy.
Parents often like the idea of passing something down that their children or grandchildren can keep indefinitely. It’s a sense of permanence in a city where most leases eventually run out.
So while financially, 999-year leasehold and freehold are neck and neck, emotionally, freehold carries that heirloom allure, something to call your family’s forever home.
Are freehold properties worth the premium?
Image credit: Singapore Luxury Homes
Here’s the honest answer: it depends what you want out of it. If you’re buying for long-term family legacy, peace of mind, or just the bragging rights of owning land “forever”, then yes, freehold might feel worth the premium prices.
But if you’re buying as an investment or plan to sell within a couple of decades, a 999-year, or even a well-located 99-year leasehold can offer better value for money. They’re cheaper upfront, and in many cases, appreciate just as well, if not better.
At the end of the day, whether you own your land for 999 years or forever, what really matters is how well you use the years you have with it. And if you don’t have kids, or decide to sell because of bad feng shui, well, forever might not last as long as you think.
For more condo news, check these out:
- A first-time buyer’s guide to choosing a condo in Singapore
- Why I chose condo over landed property
- 2025 Singapore condo launch guide, projects & what’s upcoming
Cover image adapted from: Lush Home, UOL Homes
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