SHOWFLAT OPENS DAILY

A BOUTIQUE MIXED-DEVELOPMENT AT THE HEART OF ONE-NORTH

Every Singapore buyer eventually wrestles with the freehold vs 99-year leasehold question. The stock answer (“freehold is always better”) is wrong often enough to be dangerous. Here’s the actual framework.

The Tenure Types

Price Premium

Historically, freehold condos transact at a 10–20% premium over equivalent 99-year leasehold in the same area. The premium narrows in prime districts (where land is scarce) and widens in mature outlying areas.

Appreciation: What the Data Actually Says

URA transaction data across 2010–2024 shows that in high-demand districts (1, 9, 10, 11), freehold outperforms leasehold in capital appreciation by 0.5–1% CAGR. In lower-demand districts, the spread disappears — and in some cases reverses when leasehold projects sit on superior sites.

The implication: tenure is a weaker predictor of appreciation than location, site quality and transport connectivity.

Rental Yield

Tenants generally don’t pay more for freehold. Which means 99-year leasehold often delivers higher gross yield, because acquisition price is lower while rent is comparable.

Financing

Banks cap loan tenure to ensure the loan is fully serviced before lease drops below 60 years. For a 99-year unit with, say, 40 years left, tenure is capped and LTV may be reduced. For a fresh 99-year new launch, this is a non-issue.

En-bloc Potential

Both tenures can go en-bloc. 99-year projects actually en-bloc more frequently, because remaining lease decay creates pressure to unlock value before it erodes further. Freehold developments en-bloc at the owners’ discretion.

Exit Liquidity

Under 60 years remaining lease, CPF usage is restricted, which shrinks your buyer pool. A 99-year unit bought new has ~96 years remaining — a non-issue for the next 30+ years of ownership.

When Freehold Wins

When 99-Year Leasehold Wins

The Hill @ One-North

The Hill @ One-North is a 99-year leasehold development on one of the few residential GLS plots inside the One-North precinct — which means tenure is essentially “market standard for the location.” The residual lease at TOP 2027 will be ~96 years, supporting financing and resale for decades.

Bottom Line

Buy the site, not the tenure. A well-located 99-year on a scarce plot in a growth cluster will outperform a mediocre freehold in a stagnant area. For One-North specifically, the growth drivers (URA Master Plan, workforce expansion, transport) are far more important to returns than the freehold/leasehold label.

For pricing, lease terms and current availability at The Hill @ One-North, see the project details and price list.

Leave a Reply