In previous articles, we’ve found that freehold status may not help as much as we think with condos. But when it comes to landed properties, it’s a whole different ball game. Looking at the performance of leasehold versus freehold landed, we can see it’s very distinct from the condo market. Here’s what we found:
Note: For the following, we have excluded strata-landed property. This means we’ve excluded the odd villa, terrace house, or bungalow that’s sometimes part of a condo development. We have also kept to leasehold homes with 99 to 103-year leases.
Leasehold vs. Freehold landed prices since 1995
Notice that, right up till around 2003, leasehold and freehold landed prices seemed to move downward in tandem.
This was due to the property market slump at the time: following the Asian Financial Crisis, home prices plummeted around 38 per cent from a previous peak in 1996. In the recovery and run-up to the next crisis however (the Global Financial Crisis in 2008/9),...