For many couples in Singapore, the journey from saying “I do” to owning a home feels almost inevitable—a key milestone marking the transition into married life. Yet, while the destination is the same, be it condo or HDB, the path each couple takes can be wildly different. This was the case for Keagan and Cathy, who began their house-hunting journey even before tying the knot in 2023.
Like many first-time buyers, the couple—both in their thirties—initially gravitated towards the idea of a freehold condo, drawn by its long-term stability and investment potential. However, as they navigated Singapore’s competitive property market, they quickly realised that finding a home meant more than just securing a forever asset. Factors like price, location, and their own lifestyle needs played a crucial role, leading them to reconsider their priorities.
In the end, they found that a leasehold condo offered far better bang for the buck without compromising on what truly mattered to them. Their journey highlights the real trade-offs young couples face and proves that there’s no one-size-fits-all formula for finding the right home.
Freehold vs leasehold condos: Pros & cons
Before delving into Keagan and Cathy’s homeownership journey, it’s important to understand the differences between freehold and leasehold condos.
Freehold condos
| Pros | Cons |
| Indefinite ownership: Attractive for those looking to pass down property through generations | High upfront cost: The price tag of perpetual ownership can be hefty |
| Value retention: Freehold condos retain value better, especially in more popular districts | Aging maintenance issues: Older freehold condos may require costly maintenance fees & refurbishment |
| More flexible CPF usage: Perpetual ownership means you can use CPF to pay up to its valuation limit | Lower rental yield: As freehold properties are more expensive, the rental yield can be lower than leasehold condos |
Leasehold condos
| Pros | Cons |
| More affordable: A fixed lease term and lower land costs make leasehold condos more affordable than freehold ones | Finite lease term: Older leasehold condos are less desirable because of a shorter lease |
| Higher rental yield: Landlords can potentially get more value from renting, especially if it’s in a prime area with many amenities around | Value depreciation: As its lease term goes down, so does its value |
| Modern facilities: Newer developments can feature better and more modern facilities looked after by property management companies | CPF restrictions: Buyers can only use CPF if the lease covers the buyer up to age 95, and no CPF can be used if the lease is less than 20 years |
Many of the said perks of owning a freehold condo, particularly its ability to retain value, made Keagan and Cathy’s eyes sparkle. Then again, there were also plenty of downsides. Besides, finding a 3-bedroom condo in the East, with a practical layout and near an MRT station, that fit their budget was like searching for a needle in a haystack. So they decided to look for a different needle.
The couple reevaluated what their home ownership goals were and came to a compromise, deciding leasehold properties were a more suitable proposition. “99 years is a long time, and if we bought a newer leasehold property, it would probably outlive us,” Keagan mused, adding that they didn’t have any children then, so legacy planning was not their biggest priority.
“It was important for us to identify the important characteristics and rank them by priority to help us come to the right decision.”
They didn’t have to search long. In 2022, Parc Esta TOP-ed, and Keagan and Cathy knew it was the one. It’s right opposite Eunos MRT Station, is in the East, and its new status means they get the full 99 years on the lease. So they pulled the trigger, made an offer, and moved in shortly after they got married.
Parc Esta, being a new development, also helped the couple save on renovation costs since there was barely anything needed to be replaced, unlike an older freehold condo.
Personal considerations of buying a home
Artist’s impression of The Orie, an upcoming 99-year leasehold condo in Toa Payoh.
Image credit: The Orie
Beyond price and tenure, home ownership is also about how a space feels and functions in one’s daily life. In Keagan and Cathy’s case, they don’t drive or have kids, so the decision to buy a leasehold condo was not solely about affordability—it was also about their lifestyle.
Some personal considerations that were high on the list for Keagan and Cathy included the flat’s proximity to supermarkets and hawker food. Parc Esta has 2 FairPrices within walking distance. Since they don’t own a car, the condo’s easy access to Eunos MRT Station and the bus interchange was a big plus. It’s also faster for Keagen to get to his office than if he did drive.
And then there’s the view━something that can’t always be quantified but which makes a difference to how a space feels. “Cathy loves greenery, and our unit overlooks a couple of palm trees and the swimming pool,” Keagan shared about the villa-esque vibes their condo’s view provides. “That was a key draw when we first viewed the unit with our property agent.”
The long-term investment & resale potential of leasehold condos
Artist’s impression of The ELTA, an upcoming 99-year leasehold condo in Clementi.
Image credit: The ELTA
Once Keagan and Cathy decided to go leasehold, they delved deep into all they could about the potential investment gains it could accrue. And while freehold condos are often seen as the gold standard for long-term property investment, Keagan realised leasehold condos shouldn’t be overlooked, especially for buyers who can time it well.
In general, leasehold condos in prime and well-connected districts tend to attract steady demand from buyers and tenants, so there’s no worry about demand disappearing when it’s time to sell. During his research, Keagan found that leasehold condos appreciate more than freehold condos during the first 10 years, before depreciating.
That being said, lease decay is a persistently ticking time bomb. As the remaining lease shortens, financing options can become more restrictive, and resale demand could fall. But young and savvy buyers who plan to upgrade within 10 to 20 years can still benefit from a well-chosen leasehold condo offering strong capital growth and a smoother exit strategy, compared to an older freehold unit with slower appreciation.
Lessons learned & advice for home buyers in Singapore
One of the biggest lessons Keagan and Cathy learned during their house-hunting journey was that no home is ever truly perfect. “There’s always one aspect that will not be in line with what you want, be it price, layout, or location,” Keagan explained, emphasising the importance of establishing your non-negotiables and areas of compromise early in the process.
Keagan also recommends that first-time buyers speak with experts—whether real estate agents, financial advisors, or property investors—who can provide valuable insights you might not be able to get from research alone. “Do remember that agents don’t always have your best interest at heart,” he adds. Ultimately, the best choice for you depends on your own priorities: is the home primarily for investment, or is it a place for you to live in?
Buying a leasehold condo in Singapore
While leasehold condos are often dismissed as inferior investments, the reality is far more nuanced. In prime locations, they can appreciate significantly and attract strong resale demand, especially in the short- to mid-term.
For young buyers who prioritise convenience, amenities, and accessibility, a leasehold condo can strike the right balance between affordability and practicality. And for those planning to upgrade in the future, the lower upfront cost can make financial sense, allowing them to build equity before moving on to their next home, which may well be a freehold one.
Looking back, Keagan and Cathy have no regrets—except perhaps not purchasing their home sooner. “It’s been nearly 2 years of staying at my place, but I still stop and think about how much I enjoy living in it from time to time,” Keagan said.
Their experience of buying a leasehold condo in Singapore underscores the importance of setting clear priorities, doing thorough research, and considering both financial and personal factors when choosing a home. After all, a property is more than just numbers and tenure.
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- How much it costs to live in an SLA colonial bungalow in 2025
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