Are you considering to upgrade to a condominium? Here are some things to note before deciding on a freehold or leasehold unit.
Do you know that in general, leasehold properties have appreciated by an impressive 86.7% over the past decade whereas freehold condominiums are lagging behind at 60.8% which could be attributed to the premium sale price of 10 to 15% for freehold condominiums.
Freehold units show ultimate quality during en-bloc sale. Since there are no lease to run out on and owners are less compelled to sell, the units fetch higher prices during collective sales. However, we are aware that en-bloc craze has slowed down significantly following cooling measures announced in July 2018.
Location, location, location
Over the past decade, leasehold units in District 9 appreciated more than freehold counterparts. Leasehold units saw a rise of almost 80% in psf price while freehold counterparts only rose by 66.2%.
Your Budget Matters
Even if appreciation is not your main concern, freehold properties should not be your default choice as the 10 to 15% premium can affect the affordability. Home owners should also not presume that they will be staying in the condominium their entire lives.