Freehold condos’ enduring appeal in a leasehold-dominated market
The Hillshore is the most recently launched freehold condo in Queenstown Planning Area (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Last year, the average new sale price for freehold condos islandwide was $2,778 psf, significantly higher than the $2,595 psf reported for 99-year leasehold condos (see Chart 1). However, the price gap between the two types of properties has narrowed from $395 psf in 2015 to $183 psf last year, indicating that freehold new condos could be becoming less expensive relative to their 99-year leasehold counterparts.
Unsurprisingly, last year’s average resale price for freehold condos islandwide ($1,941 psf) was also significantly higher than that for 99-year leasehold condos ($1,707 psf) (see Chart 2). Likewise, the price gap between the two has narrowed, albeit to a lesser extent compared to their average new sale prices. The average resale price gap has narrowed from $311 psf in 2015 to $234 psf last year.
Legacy planning
A reason for the continued popularity of freehold condos despite their higher prices could be legacy planning. Owners of freehold condo units are able to hold the property in perpetuity, while owners of 99-year leasehold units must give up their asset to the government upon the expiry of the land lease. Hence, freehold condo units are better suited for legacy planning, allowing owners to pass the unit to their children as part of their inheritance.
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Given rising property prices, some parents view such inheritance as a way to help their children enter the private property market.
Holds value better
The longer tenure of freehold condos also mitigates the negative impact of lease decay, allowing them to maintain their value better than leasehold condos. This is especially true for older developments.
Unsurprisingly, last year’s average resale price of freehold condos that are more than 40 years old ($1,730 psf) is higher than that of their 99-year leasehold peers ($1,173 psf) (see Chart 3). Notably, from 2020 to 2025, the average resale price for such freehold condos rose by 32.2%, compared to growth of 26.9% for similar 99-year leasehold condos. Additionally, the price gap between the two has widened from $320 psf in 2015 to $557 psf last year.
The stronger price growth for older freehold condos and the widening price gap compared to their 99-year leasehold counterparts indicate that freehold condos are better able to maintain their value. This could be attributed to the weaker impact of lease decay on freehold properties, especially older ones.
Stronger en bloc potential?
Many factors, including proximity to amenities such as MRT stations, schools and shops, as well as timing and luck, play a part in determining the success of an en bloc attempt. The tenure of the site is also an important factor.
Freehold en bloc sites are likely to be more attractive to developers because they do not need to pay a land betterment charge to top up the land lease, unlike for leasehold sites. Additionally, many buyers still prefer freehold condos which translates into robust demand and stellar sales performance for launches of freehold condos.
Furthermore, the supply of freehold residential land tends to be limited to en bloc sales because all residential sites available via the Government Land Sales (GLS) programme have a 99-year tenure. As a result, freehold residential land parcels available for sale via en bloc tend to be snapped up quickly, especially if they are in a popular residential neighbourhood.
A popular neighbourhood
Despite commanding higher prices than 99-year leasehold condos, freehold condos continue to attract buyers, especially when they are located in popular neighbourhoods within the Central Region. Among the planning areas in the Central Region, Queenstown stands out as a popular residential enclave due to its proximity to the CBD and Orchard Road. Furthermore, the abundance of freehold condos in Queenstown could have added to the neighbourhood’s appeal.
Additionally, Queenstown is well connected to the rest of the island as it houses eight MRT stations — Haw Par Villa, Kent Ridge, one-north, Pasir Panjang, Buona Vista, Commonwealth, Dover and Queenstown — connecting residents to the rest of the island via the Circle and East-West lines. The Ayer Rajah Expressway also runs through the planning area.
Queenstown Planning Area offers many amenities, including One Holland Village, Holland Village, The Star Vista, Margaret Drive Hawker Centre and Market, Tanglin Halt Market, West Coast Park and The Southern Ridges. Queenstown is also home to one-north, which is slated to be Singapore’s AI hub. Given Singapore’s push towards building a technology-driven economy, stronger housing demand could emerge for properties near the business park.
Additionally, there are several popular schools within the planning area, including Fairfield Methodist School (primary and secondary), Anglo-Chinese School (Independent) and Anglo-Chinese Junior College.
Queenstown: Only two upcoming freehold condos
At the time of writing, Queenstown Planning Area has around 73 condos comprising approximately 15,500 units. Of these, seven were launched in the last three years, namely Bloomsbury Residences, Blossoms by the Park, Lyndenwoods, Penrith, Skye at Holland, Terra Hill and The Hillshore. Notably, Lyndenwoods, Penrith and Skye at Holland are among last year’s most successful launches, attesting to the strong demand for new condos in Queenstown.
Terra Hill and The Hillshore stand out because they are the only freehold developments among the seven recently launched condos in Queenstown. However, the two projects differ significantly and are expected to appeal to different types of buyers.
The Hillshore is an exclusive development with only 59 units spread across two five-storey blocks. The boutique condo features a mix of two-bedroom to four-bedroom units.
Located along Pasir Panjang Road and near Haw Par Villa MRT Station (see Map 1), The Hillshore may appeal to investors targeting tenants working at the nearby Singapore Science Park and one-north. It could also attract owner-occupiers who value privacy and therefore prefer more exclusive developments with fewer units.
The condo is located along Pasir Panjang Road and near Haw Par Villa MRT Station (see Map 1). The condo will probably appeal to investors hoping to attract tenants working at the nearby Singapore Science Park and one-north. The condo should also appeal to owner-occupiers who value their privacy and hence prefer smaller and more exclusive developments.
The Hillshore attracted 700 visitors when it held a preview in April 2024. Based on caveats lodged at the time of writing, six units have been sold at an average price of $2,499 psf, which is lower than some newly launched 99-year leasehold condos that are also in Queenstown Planning Area. Examples include Penrith ($2,805 psf based on 449 transactions) and Skye at Holland ($2,956 psf based on 662 transactions).
Source: EdgeProp LandLens
In contrast, Terra Hill is a significantly larger development with 270 units. Located along Yew Siang Road and near Pasir Panjang MRT Station, Terra Hill is further from the two science parks compared to The Hillshore (see Map 2).
Source: EdgeProp LandLens
Launched in February 2023, Terra Hill achieved a take-up rate of 38% during its launch weekend. Based on caveats lodged at the time of writing, the take-up rate has improved to 63% at an average price of $2,668 psf.
Notably, Terra Hill has a significantly higher average price compared to The Hillshore, despite both being freehold developments in Queenstown Planning Area and District 5. However, the average prices of both condos remain lower than the islandwide average for freehold condos (see Chart 4).
Freehold condos in Queenstown are popular in the resale market
Among the completed freehold condos in Queenstown, The Anchorage stands out, having recorded the highest resales volume last year. The 775-unit condo achieved 16 transactions at an average resale price of $2,010 psf, representing an increase of 64.2% since 2015 (see Chart 5).
A possible reason for The Anchorage’s popularity is that it forms part of a mixed-use development that includes a mall. Furthermore, the mall — Anchorpoint — has undergone a major revamp which has helped to attract new tenants.
The condo is also within walking distance of Queensway Shopping Centre, Ikea Alexandra, Momentus Hotel Alexandra, ABC Brickworks Market and Food Centre, and Alexandra Village Food Centre.
Apart from The Anchorage, Viva Vista also stands out, having recorded the highest number of profitable transactions among freehold condos in Queenstown last year. The 144-unit condo reported 14 profitable transactions, with profits ranging from approximately $4,400 to $125,000. No unprofitable transactions were recorded for the condo last year.
Last year’s highest profit of $125,000 for Viva Vista involved a 377-sq ft unit on the fourth storey. The one-bedroom unit was purchased in July 2021 for $580,000 ($1,540 psf) and sold in August 2025 for $705,000 ($1,871 psf).
The Anchorage ranked second with 10 profitable transactions. Profits range from approximately $660,000 to $2.705 million. The unit that generated the highest profit of $2.705 million is located on the 15th storey and measures 2,088 sq ft. The seller purchased the four-bedroom unit in February 1999 for $1.395 million ($668 psf) and sold it in October 2025 for $4.1 million ($1,963 psf).
Conclusion
Although freehold condos command significantly higher prices than their 99-year leasehold counterparts, the narrowing price gap — particularly in the new sale market — suggests that buyers are still willing to pay a premium for freehold condo units. At the same time, the stronger price resilience of older freehold developments highlights their ability to better withstand lease decay, underlining their long-term value.
Freehold condos also to appeal to buyers for legacy planning purposes and for their stronger en bloc potential. As freehold land is unavailable through the GLS programme, collective sales remain one of the few avenues for developers to secure such sites, underscoring the value of such assets.
The case of Queenstown Planning Area further illustrates this appeal. Among the recent condo launches, only The Hillshore and Terra Hill are freehold developments. Both condos have achieved healthy interest from buyers. Meanwhile completed freehold projects such as The Anchorage and Viva Vista continue to see robust resale activity and profitable transactions.
To sum up, 99-year leasehold condos are more affordable but freehold condos continue to attract a loyal pool of buyers who value tenure security, legacy planning advantages and long-term price resilience.
Check out the latest listings for The Hillshore, Terra Hill, The Anchorage, Viva Vista, Queenstown properties
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